If you’re sitting on a bunch of stablecoins in your portfolio, you might want to consider earning some yield on these idle assets. I mean let’s face it, in the fiat world, banks are offering deposit rates of less than 1%. That’s hardly very enticing and it’s well below the rate of inflation which has skyrocketed since Covid-19 shocked the world and governments set their money printers to full blown brrrrrrr……mode.
When it comes to stablecoins, there are plenty of options available to earn yield. So, here’s how to get the best return on stablecoins.
1. Celsius
With over 1.6 million users and $21 billion in assets under management, Celsius have become a major player in the yield generation space.
They are currently offering 7.10 % APY (Annual Percentage Yield) on USDC, USDT, BUSD, GUSD, TUSD and PAX. They also offer yield on other currencies via the True stablecoin family which includes TGBP, THKD, TCAD and TAUD, all available with the same APY.
Celsius gives their users the option to earn a bump in their interest rate of 2.22% (so total 9.32%) if they accept their native $CEL token as rewards, rather than in-kind rewards. Interest is paid on a weekly basis and they also offer yield on other popular cryptocurrencies as well.
2. Nexo
Nexo has over 4 million users and $12 billion in assets under management.
The platform offers yield on a range of stablecoins and are currently offering 10% APR (Annual Percentage Rate) on USDC, USDT, TUSD, USDX, EURX and GBPX. They are also offering 15% APR on UST.
Similar to Celsius, Nexo gives users the option to earn additional interest (+2%) if users accept their native $NEXO token as rewards, rather than in-kind rewards. Interest is paid on a daily basis and they have a $375 million insurance fund in the event of hacks or theft.
3. BlockFi
BlockFi is a major competitor to Celsius and Nexo. They offer bank-like services to their users including interest on crypto assets deposited, a token swap service and a credit card so that users can spend their earnings.
BlockFi is currently offering 7.25% APY on GUSD, USDT, USDC, BUSD, DAI and PAX. Interest accrues daily and is paid to users on a monthly basis.
Note that BlockFi does not have its own native token.
4. Yield App
Yield App is a global fintech company managed by an experienced team in capital markets. Users can buy, swap, and earn yield on a range of crypto assets, including stablecoins.
Yield App offers incentives to holders of their native token, $YLD. By owning and staking the $YLD token, users can enjoy interest rate boosts. There are 4 different tier levels available, from Bronze to Diamond membership.
The platform currently offers between 6 to 10% APY on DAI, USDT, USDC and TUSD. With added bonuses to token holders of between 1 to 3% depending on their tier level. These additional rewards are paid to users in the $YLD token. By way of example, Diamond tier holders earn in-kind rewards of 10% plus 3% in $YLD token rewards (total 13%).
5. Anchor Protocol
Anchor Protocol is a decentralized money market savings and lending platform built on the Terra blockchain. The platform offers users approximately 19.5% APY on deposits of $UST which is the TerraUSD stablecoin.
Leading stablecoins such as USDC and USDT, are pegged to the price of the USD by a…
