The first Yield Routes are now live on CheeseChain, enabling seamless USDC transfers from Arbitrum for passive yield generation powered by Hyperlane.
Start bridging today: bridge.cheesechain.xyz
What is CheeseChain 🧀
“A blockchain we slapped on a piece of cheese and it worked.” — CheeseChain team
CheeseChain is a native yield-generating Layer 3 chain. It is powered by the $CHEESE token, which is used for gas payments and swaps on Cheddex, CheeseChain’s native DEX. With over 548k total transactions already processed, CheeseChain is taking its next big step, with the launch of its first Yield Routes.
What’s New
CheeseChain just launched its Stable Bridge, allowing USDC transfers between Arbitrum and CheeseChain in seconds. By bridging over to CheeseChain, users can start earning yield on their USDC, while being able to redeem their assets at any time.
User Flow
From a user perspective, Yield Routes work like a typical bridge. Simply bridge your USDC from Arbitrum to CheeseChain, and bridge back to Arbitrum whenever you’d like. The magic of Yield Routes is that you earn yield on your bridged assets, in this case USDC.
Once you bridge your USDC, your USDC is deposited into Aave’s USDC lending vault, earning yield by being lent out to borrowers. When you’d like to withdraw your assets back to Arbitrum, your position in the vault is redeemed and you receive your USDC plus any of the yield earned on that position.
In short, bridge in via Yield Route → start earning yield → bridge out and redeem original assets + earned rewards.
What are Yield Routes?
Yield Routes are Hyperlane Warp Routes that generate yield on bridged assets.
While traditional bridged assets sit idly in a smart contract, assets bridged via Yield Routes are put to work, autocompounding rewards as soon as they are deposited. The Yield Route deposits bridged assets, which acts as collateral, into a yield-generating ERC4626 vault decided on by the chain deployer. When a user wants to withdraw funds and bridge back, the collateral is then redeemed from the ERC4626 vault and the user receives their original assets plus the yield earned on their position.
Note that the deployer can choose how to allocate the yield generated. The yield can go directly to the user, can be split, or kept entirely by the contract owner to be redistributed for incentive mechanisms in the future. For instance, yield generated for CheeseChain depositors will contribute to future Cheddex rewards.
Yield Routes open up access to passive yield bridging as seen on chains like Blast and Manta, as anyone can now deploy Yield Routes for their own unique incentive mechanisms. The chain deployment and collateral vault configuration was managed entirely by the CheeseChain team, a testimony to the power of permissionless deployments with Hyperlane.
What’s Next
Yield Route expansion is just getting started. As teams continue to experiment with various incentive mechanisms for their ecosystems, Yield Routes provide a simple, customizable framework for enabling passive yield bridging. Deployers can select which specific assets can be bridged, which specific mechanisms to use for security, and how the yield is generated and distributed back to users. As more asset types are supported in the future, we anticipate more unique and exciting Yield Route implementations.
Bridge and start earning yield on CheeseChain today: https://bridge.cheesechain.xyz/.
Learn more about Yield Routes in our blog post and docs.
More about Hyperlane
Hyperlane is the open interoperability framework. It empowers developers to connect anywhere onchain and build applications that can easily and securely communicate between multiple blockchains. Importantly, Hyperlane is fully open-source and always permissionless to build with.
