# Yield

cpUSD generates yield from two main sources:

#### PayFi Vaults

Permissioned lending vaults that provide short-term stablecoin loans to institutional PayFi borrowers. Loan cycles **typically run 1–5 days**, enabling strong redemption liquidity and competitive double-digit APYs.

[Learn more](https://docs.clearpool.finance/clearpool/products/fintech-vaults) about PayFi Vaults.

#### Liquid Yield-Bearing Stablecoins

A **reserve of liquid yield-bearing stablecoins** is maintained in the cpUSD Vault to support instant redemptions while generating additional yield.

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### **Yield Accrual** 

cpUSD accrues and reflects yield **automatically**. Its value increases continuously through the Vault’s exchange rate, which rises block by block as interest from PayFi loans accrues.

When redeemed, cpUSD returns the **original deposit plus the accrued yield**, calculated at the current exchange rate.