Introducing Charm FX

Earn stablecoin yields from Foreign Exchange pools.

Summary

Charm is launching three savings products for USDC, XSGD, and JPYC on Polygon. The products accept user deposits in any token, and deposit them into Foreign Exchange (FX) pools containing USDC, XSGD, and JPYC, in order to capture fees from foreign exchange transactions.

Why Charm FX

Charm FX generates stablecoin yields from foreign exchange transactions, rather than from borrowing demand, token emissions, or interest rates. Users are already earning unincentivized Net APRs up to 35.5% over 4+ months.

Live Performance

Three Charm FX vaults have been live on Polygon since late 2025. All results below are unincentivized Net APRs — pure fee income, no token rewards, after all fees and impermanent loss.

USDC / JPYC

USDC / XSGD

USDC.e / XSGD

Simulated Performance

The products were built using 2+ years of backtested data before they went live in late October 2025. Here are the results:

USDC / XSGD

▾

3m

6m

9m

1yr

2yr

Total Return

1.64%

5.06%

7.48%

13.14%

33.24%

Net APR

6.57%

10.11%

9.97%

13.14%

17.34%

Growth of $10,000 deposit:

The backtest for USDC.e / XSGD is the same as USDC / XSGD. JPYC was launched on 28th October 2025 and therefore no backtests were available for USDC/JPYC before this date.

Background

Stablecoins generate yields from one of four buckets:

1. Borrowing demand

Lending on centralized platforms or DeFi money markets generate interest when traders or institutions borrow stablecoins. The interest is paid as yields, but these yields fluctuate with leverage cycles and market sentiment.

2. Token incentives

Liquidity mining programs and governance token rewards can temporarily boost returns, but these subsidies are emissions-driven and inherently unsustainable.

3. Reserve or real-world asset (RWA) yield

Some yield-bearing stablecoins distribute income generated from underlying Treasury bills or other real-world assets. The yields are more durable than token incentives, but they are capped by prevailing interest rates and regulatory constraints.

4. Trading fees

Liquidity providers earn fees when DEX liquidity pools are being used to trade stablecoins. Compared to borrowing, incentives or RWA, the earning is more sustainable because it arises from trading flows.

The Opportunity

Trading fees are one of the most sustainable sources of yields because it arises from persistent economic activity - as long as markets exist, trading will occur.

For stablecoins, a significant share of fee revenue comes from FX pools — DEX liquidity pools that facilitate cross-border payments and foreign exchange transactions. Liquidity providers earn fees on each payment or trade, with returns driven by real-world transaction flows rather than economic cycles, speculative leverage, short-term incentives, or interest rate movements.

The Product

Charm FX are liquidity vaults that earn fee income from FX pools. Users deposit into a vault in one click, and the vault provides liquidity into FX pools. The vaults are purpose-built to earn yields from FX pools, they have:

• Tight ranges to capture fees from FX trading.
• Lower risk because the vaults only contain stablecoins.
• Automated rebalancing to keep the vault's positions optimised around the current price.

Security

Charm FX uses Charm's liquidity management contracts - one of DeFi's most secure contracts with nearly five years of 24/7 operations with no security incidents. The contracts and its forks have managed over $300M of TVL since launching in May 2021, and has undergone 4 audits.

Get Started

Charm FX's three savings products are live for USDC, XSGD, and JPYC on Polygon. Connect your wallet and start earning.