Want your USDC to earn a return without having to navigate complex DeFi yourself? CoolWallet now offers Curated Yield, powered by Gauntlet USD Alpha, where your USDC is supplied to a risk-managed onchain yield strategy curated by Gauntlet. Returns accrue automatically, and you deposit and withdraw right inside the CoolWallet App. This guide explains what the feature is, where the yield comes from, its risks, and how to use it.
Content
- What Is Curated Yield
- Where the Yield Comes From
- Risks of Curated Yield
- Why Use Curated Yield on CoolWallet
- Instructions
- FAQs
What Is Curated Yield
Curated Yield is a product that lets you earn a return simply by depositing USDC, and the strategy behind it is called Gauntlet USD Alpha.
Unlike managing DeFi yourself, the strategy is curated by Gauntlet. Gauntlet is a quantitative risk manager and yield curator, in DeFi since 2018, with more than US$1.8 billion supplied to the vaults it curates. Your deposited USDC is supplied through smart contracts to Gauntlet USD Alpha, a strategy that lends across a range of vetted onchain lending markets, seeking risk-adjusted returns. Throughout the process Gauntlet never takes custody of your assets — it curates the strategy and monitors risk continuously.
Where the Yield Comes From
After you deposit, your USDC is supplied to Gauntlet USD Alpha, which lends it in overcollateralized lending markets on Morpho across Ethereum mainnet and L2s. Yield comes from what borrowers pay, and it floats with borrowing demand. Gauntlet curates the strategy, sets its parameters and monitors the markets continuously.
The rate is shown as an APY that moves with market rates and allocation. It is not a fixed rate, and the figure shown in the App is an estimate. Returns are reflected directly in the growing value of your position and compound automatically — there is nothing to claim manually, and they are returned together when you withdraw.
Risks of Curated Yield
This is a DeFi yield product, not a principal-protected deposit. Please understand the following risks before taking part:
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Smart contract risk: the underlying protocols (such as Morpho) carry smart contract and protocol operation risk.
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Bad debt risk: lending markets can incur bad debt under extreme conditions.
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Yield volatility: returns can compress when market volatility is low or rates fall.
Gauntlet deploys its own capital into this strategy, which ensures that they share in the costs of any bad debt liquidations. This is not a guarantee against losses by vault users, and cannot be claimed by anyone else if there are bad debt scenarios.
Why Use Curated Yield on CoolWallet
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Self-custody, you stay in control: everything stays under your CoolWallet private keys — neither Gauntlet nor CoolWallet takes custody of your assets.
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Hardware-grade security: with CoolWallet Pro or CoolWallet Go, your private keys are stored in a secure hardware chip, minimizing exposure.
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Institutional strategy, no hands-on DeFi: Gauntlet curates the strategy and monitors risk around the clock. You just deposit USDC.
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Everything in one app: deposit, withdraw, and track your returns directly in the CoolWallet App.
Supported Products
CoolWallet App version: v4.33.0 or above
Instructions
Before You Deposit
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Supported asset and networks: only USDC is supported for now, and you can deposit it on Ethereum, Base, Arbitrum, and Optimism.
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Two on-chain transactions required: each deposit requires an “Approve” transaction followed by a “Deposit” transaction. If your existing allowance already covers the amount, the approval is skipped automatically.
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Returns compound automatically: yield is reflected in your position value, with nothing to claim manually.
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Minimum deposit: as shown in the App (currently around 1.5 USDC).
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Flexible withdrawals: you can request a withdrawal at any time, partial withdrawals are supported, and it usually completes within 12 hours.
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Network fee only: both deposits and withdrawals require a network fee (gas); the App shows an estimate before you proceed.
How to Deposit
Step 1. Open the CoolWallet App, go to Earn, and select Curated Yield for USDC.
Step 2. On the Curated Yield page, tap Deposit; after reviewing the information, choose the USDC address you want to deposit from, enter the deposit amount, review the estimated network fee and estimated completion time, then continue.
Step 3. Sign the two transactions in order: first Approve, then Deposit (CoolWallet Pro or CoolWallet Go users should have their cold wallet ready to sign).
Step 4. Once submitted, the status shows Processing; when complete it changes to Earning, and your position starts accruing returns.
How to Withdraw
Step 1. On an Earning position, tap Withdraw.
Step 2. Enter the amount to withdraw (partial withdrawals are supported), then sign the two transactions in order (approve shares and redeem).
Step 3. Once submitted, the status shows Withdrawing and usually completes within 12 hours, after which the USDC is returned to your address.
Status Guide
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Processing: the deposit transaction has been submitted and is awaiting on-chain and strategy-side confirmation.
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Earning: the funds are in the strategy and accruing returns.
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Withdrawing: a withdrawal request has been submitted and usually completes within 12 hours.
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Deposit Expired: the deposit request expired before it could complete. Tap Reclaim to get your USDC back.
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Withdrawal Expired: the withdrawal request expired. Tap Cancel Withdrawal; your assets stay in the strategy and keep earning, and you can request a withdrawal again later.
FAQs
Q1: What is Curated Yield, and who is Gauntlet?
It is a feature that lets you earn a return by depositing USDC. The strategy is curated by Gauntlet — a quantitative risk manager and yield curator in DeFi since 2018, with more than US$1.8 billion supplied to the vaults it curates. Gauntlet curates the strategy and monitors risk; it never takes custody of your assets.
Q2: Where does the yield come from?
Your deposited USDC is supplied to Gauntlet USD Alpha, which lends it in overcollateralized lending markets on Morpho. The rate is shown as an APY that moves with the market; it is not a fixed rate, and the figure shown in the App is an estimate.
Q3: Which stablecoins and networks are supported?
Only USDC is supported for now, and you can deposit it on Ethereum, Base, Arbitrum, and Optimism.
Q4: How are returns calculated and claimed?
Returns accrue automatically and are reflected in the growing value of your position, compounding automatically — there is nothing to claim manually. When you withdraw, the accumulated returns are returned together.
Q5: Can I withdraw at any time?
Yes. You can request a withdrawal at any time, and partial withdrawals are supported. A withdrawal usually completes within 12 hours, though actual timing may vary with market and liquidity conditions.
Q6: What are the risks?
This is a DeFi yield product and is not principal-protected. The main risks include smart contract risk in the underlying protocols, bad debt risk in lending markets, and lower returns during market volatility. Gauntlet deploys its own capital into this strategy, which ensures that we share in the costs of any bad debt liquidations. This is not a guarantee against losses by vault users, and cannot be claimed by anyone else if there are bad debt scenarios.
Q7: What should I do if a deposit or withdrawal shows “Expired”?
If a deposit shows Deposit Expired, the request did not complete in time — tap Reclaim to get your USDC back. If a withdrawal shows Withdrawal Expired, tap Cancel Withdrawal; your assets stay in the strategy and keep earning, and you can request a withdrawal again later. Both actions require a network fee.
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