Stablecoin Yield Strategies: Diversified Options and Risk Diversification

When the US dollar index is high and risk assets decline, holding dollar assets to earn returns becomes a good choice. Recently, some leading DeFi projects have also been actively utilizing idle dollar assets to generate profits. This article will introduce several stablecoin yield strategies for investors' reference.

Convex: USDD+3Crv Pool

USDD is a stablecoin managed by a certain institution. As of October 27, the issuance of USDD is 725 million, with collateral valued at 2.23 billion USD and a collateralization ratio exceeding 300%. Among them, the collateral amount of USDC reaches 990 million, far exceeding the issuance of USDD, indicating a lower risk coefficient.

On the Convex platform, the annualized yield of the USDD+3Crv pool is 19.66%, while the APR of USDD+FRAXBP is 21.18%. The former includes four stablecoins: USDD, DAI, USDT, and USDC, while the latter includes three stablecoins: USDD, FRAX, and USDC. The steps are to first deposit the supported stablecoins through the Curve entry on the USDD+3Crv pool page on Convex, and then stake the obtained LP tokens on Convex.

Canto: USDT+NOTE Combination

Canto is an EVM-compatible DeFi public chain in the Cosmos ecosystem, providing DEX, lending, and stablecoin NOTE services. Currently, the total locked value of Canto is approximately $100 million.

Canto's lending platform shows that the APR for NOTE/USDT LP is 32.14%, and the APR for NOTE/USDC LP is 29.47%. NOTE is a stablecoin minted in Canto through over-collateralization, and there will be no liquidation when the collateral is USDC and USDT. It is recommended to use some USDT as collateral to mint NOTE, then provide liquidity with NOTE and the remaining USDT, and subsequently stake the LP tokens on the lending platform.

It should be noted that Canto's cross-chain operations are relatively complex, requiring multiple steps for both entry and exit.

Velodrome: sUSD+LUSD Combination

Velodrome is a decentralized exchange on the Optimism network, with code sourced from a well-known developer's project on Fantom. Currently, Velodrome's TVL is $82 million, ranking higher than some mainstream DEXs on Optimism.

sUSD and LUSD are tokens issued by two relatively safe stablecoin projects. Currently, the liquidity mining APR for the sUSD/LUSD trading pair in Velodrome is 16.12%.

Helio: HAY+BUSD Pair

Helio Protocol is a liquidity staking and lending protocol on the BNB chain that allows users to over-collateralize and borrow the centralized stablecoin HAY. Currently, Helio's TVL is 92 million US dollars.

Investors can provide liquidity for the HAY/BUSD stablecoin trading pair on a large decentralized exchange, and then stake the obtained LP tokens in Helio. Helio's Farming page shows that the APR for HAY/BUSD Stable LP is 19.77%.

Wombat Exchange Ecosystem: Multiple Stablecoin Options

Wombat Exchange is a stablecoin trading platform on the BNB chain, featuring low slippage and shared liquidity. The project has received investment support from several well-known institutions.

In Wombat's main pool, the APRs for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57% respectively (including the accelerated rewards for locking WOM and holding veWOM).

Applications similar to other platforms have also emerged around Wombat, such as Wombex Finance and Magpie, which provide users with higher yield rates. Wombex currently has a TVL of approximately $90 million, with deposit APRs for various stablecoins ranging from 12.71% to 17.16%. Magpie has a TVL of approximately $26 million, with APRs for various stablecoins ranging from 9.65% to 14.52%.

Finally, please note that the cryptocurrency market carries high risks, and security incidents are frequent. Investors should diversify their risks, thoroughly understand the specific risk points of each project, and conduct sufficient research.