Fungi, a fresh AI-based DeFi instrument, is rapidly becoming popular for assisting clients with deriving better returns on stablecoins like USDC. Launched in April 2025 on the Base blockchain, Fungi has already processed over $77 million in total volume.
It’s a smart system that automatically moves users’ USDC between platforms such as Aave, Morpho, Moonwell, and Fluid to get the best interest rates. It checks daily APYs (annual percentage yields), rewards, gas fees, and platform risks before rebalancing the funds.
As per the Dune reports, Morpho has turned out to be Fungi’s top-performing source so far, handling over $20 million of the total volume. One unique feature of Fungi is that every user gets their own smart contract account, which means they always have full control of their money. Automation is handled safely through “session keys,” which allow the system to work without taking custody of the funds.
Fungi also partners with professional vault curators such as Gauntlet, ExtraFi, Clearstar, and Steakhouse to enable users to earn more. Currently, Fungi is handling more than 322,000 USDC directly.
Its popularity indicates an emerging trend toward DeFi leveraging AI and automation to perform intelligent, tailored money decisions. Whether used by individual investors or onchain treasuries, Fungi offers a secure and hands-off solution to grow stablecoin holdings.
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