Capitalizing the stablecoin economy with Grove Finance
Grove Finance is a credit protocol that connects onchain stablecoin capital with institutional credit markets, producing real, transparent yield for depositors worldwide.
Key features
Noncustodial vaults
Funds stay on-chain inside audited smart contracts. No intermediary holds your assets. Withdraw from instant vaults at any time, subject to prevailing liquidity conditions.
Institutional repo access
The Grove Finance platform routes deposited USDC and USDS into collateralised repo markets. Counterparties post blue-chip securities — Treasuries, agency bonds — as collateral.
Multiple vault strategies
Four live vaults at launch: USDC Prime Instant, USDC High Yield Instant, AUSD Turbo, and AUSD High Yield Term. Each targets a distinct risk-return profile, from conservative to leveraged.
Real-time on-chain data
Grove Finance Data publishes protocol metrics openly. TVL, yield rates, and collateral composition update in real time — no proprietary data feeds required to verify performance.
Sky Savings Rate integration
Grove Finance Savings distributes the Sky Savings Rate directly to USDS holders. Sky deploys capital across diversified credit activities; Grove Finance passes that return to depositors without friction.
EIP-4844 cost efficiency
EIP-4844 reduced Layer 2 data costs significantly after the Dencun upgrade in March 2024. The protocol's roadmap accounts for these lower fees to bring vault access to a broader user base.
Open documentation
Smart contract addresses, audit reports, and integration guides live at docs.grove.finance. Developers can build on top of the Grove Finance protocol using published ABIs and SDK references. Visit Ethereum developer docs for underlying infrastructure context.
How it works
Connect your wallet
Open the Grove Finance app and connect any EIP-1193 compatible wallet — MetaMask, Coinbase Wallet, WalletConnect, and others are supported out of the box.
Choose a vault
Browse the four available vaults. Instant vaults suit depositors who want flexibility. The term vault locks capital until maturity in exchange for a higher headline rate. Pick what fits your situation.
Deposit USDC, USDS, or AUSD
Enter an amount, approve the ERC-20 token allowance, and confirm the deposit transaction. The vault contract mints a receipt token representing your share of the pool. Gas costs on Ethereum mainnet apply.
Earn yield from credit markets
The team behind Grove Finance deploys pooled capital into repo agreements with institutional counterparties. Interest accrues continuously and is reflected in the rising net asset value of your receipt tokens.
Redeem when ready
Burn your receipt tokens to receive the original deposit plus accrued yield. Instant vault redemptions settle on-chain in a single transaction. Term vault redemptions open at the fixed maturity date.
Grove Finance by the numbers
Protocol TVL
Grove Savings TVL
Active vaults
Protocol launched
TVL figures are approximate and updated periodically. For live data see the dashboard.
Why Grove Finance
Transparent yield source
Most stablecoin products obscure where yield comes from. Grove Finance's protocol publishes collateral composition and counterparty categories on-chain. You can verify the source of returns without trusting a single document. That matters.
Competitive rates versus money markets
Institutional repo rates on Treasury collateral have historically tracked the federal funds rate closely. By routing directly to these markets — bypassing fund intermediaries — the Grove Finance platform reduces fee drag and passes more return to depositors. Learn more about repurchase agreements on Wikipedia.
No custody risk
Assets sit in noncustodial smart contracts throughout the deposit lifecycle. The Grove Finance team does not hold user funds in off-chain accounts. In the event of an operational issue, depositors retain on-chain recourse.
Infrastructure built for scale
Over $8B in combined TVL across products demonstrates that the architecture handles institutional volumes. The smart contracts were designed with EIP-4844's data cost reductions in mind, anticipating future multi-chain deployment at lower overhead. See more details on the About page.
FAQ
More detailed answers are available on the full FAQ page.
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What is Grove Finance?
Grove Finance is a credit protocol that connects onchain stablecoin capital with institutional credit markets, generating real yield from repo transactions and other structured credit activities. It is not a bank. It does not promise fixed rates. What it offers is transparent, on-chain access to credit returns.
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How do I deposit into Grove Finance?
Connect a compatible Web3 wallet on the Grove Finance app, select a vault — for example the USDC Prime Instant Vault — enter your deposit amount in USDC or USDS, and confirm the transaction on-chain. The process takes under two minutes once your wallet is funded.
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Is Grove Finance safe and audited?
Grove Finance's smart contracts have undergone independent security audits. The protocol is noncustodial: funds remain under user control via on-chain vault contracts at all times. Audit reports are published in the documentation.
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What tokens does Grove Finance support?
USDC and USDS are the primary deposit assets. AUSD (Agora USD) is supported in the AUSD Turbo Vault and the AUSD High Yield Term Vault. The team behind Grove Finance evaluates additional stablecoins on a rolling basis.
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Can I withdraw at any time if I use an instant vault?
Yes. Instant vaults — the USDC Prime Instant Vault and the USDC High Yield Instant Vault — allow withdrawals without a fixed lock-up, subject to on-chain liquidity. Term vaults are different: they carry a fixed maturity date, and early withdrawal may not be available.
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Why should I use Grove Finance instead of a simple savings account?
Grove Finance routes capital into institutional-grade repo markets using blue-chip collateral. Yield has historically tracked or exceeded money market rates — with on-chain transparency that traditional accounts cannot offer. That said, DeFi carries its own risks, including smart contract risk, which traditional savings accounts do not.
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What is the Grove Finance Savings product?
Grove Finance Savings lets holders of USDS earn the Sky Savings Rate. Sky deploys capital across diversified revenue-generating activities and distributes a portion of that revenue back to USDS savers through the Grove Finance platform. No staking period applies.
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How does Grove Finance generate yield?
Yield comes primarily from collateralised repo transactions in traditional credit markets, supplemented by structured credit and on-chain lending. The team selects counterparties and collateral sets based on published credit criteria. Leveraged vaults like AUSD Turbo amplify returns — and risk — through on-chain leverage mechanisms.
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What is EIP-4844 and is it relevant to Grove Finance?
EIP-4844 introduced proto-danksharding to Ethereum in March 2024, cutting Layer 2 data costs by over 90% in many cases. Lower L2 gas fees make on-chain credit operations cheaper for end users of the Grove Finance platform, and the team's roadmap for multi-chain expansion is built around these economics.
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Which blockchain network does Grove Finance run on?
Grove Finance's vaults are currently deployed on Ethereum mainnet. EIP-4844's cost reductions inform future plans for Layer 2 deployment. Ethereum is the settlement layer — for background on how it works, the Ethereum developer documentation is a useful starting point.
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What is a term vault in Grove Finance?
Term vaults lock deposited assets until a fixed maturity date. The AUSD High Yield Term Vault is the current example. In exchange for the liquidity commitment, term vaults typically offer higher yield than their instant equivalents. Check the app for current maturity dates before depositing.
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How do I track my Grove Finance position?
The Grove Finance app dashboard shows deposited amounts, accrued yield, and vault-level performance in real time. Protocol-wide metrics — TVL, aggregate yield, collateral breakdowns — are published separately at the Grove Finance Data portal. Both update continuously from on-chain state.
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Is there a minimum deposit for Grove Finance vaults?
Most vaults do not impose a large minimum. Practically speaking, Ethereum mainnet gas costs mean very small deposits may not be economical. Check the current vault parameters in the Grove Finance app before depositing, since parameters can change through governance.
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Where can I read the Grove Finance documentation?
Full technical and user documentation is at docs.grove.finance. It covers vault mechanics, smart contract addresses, audit reports, and developer integration guides. The About page provides additional background on the team and protocol history.