Latest Trends in Stablecoin Yield Strategies: Diversified Choices and Risk Prevention

In the current market environment where the US dollar index is high and risk assets are falling, holding US dollar assets and earning returns has become a wise choice. Recently, several leading DeFi projects are also actively seeking returns by utilizing idle US dollar assets. This article will introduce you to the latest developments in several stablecoin yield strategies.

USDD+3Crv Pool: High Returns and Low Risks Coexist

USDD is a stablecoin managed by a certain institution. As of October 27, the issuance of USDD is 725 million, while the value of its collateral reaches 2.23 billion, with a collateralization rate exceeding 300%. Among the collateral, USDC alone amounts to 990 million, far surpassing the issuance of USDD, indicating a lower risk coefficient.

A certain platform shows that the annualized yield of the USDD+3Crv pool is 19.66%, and 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. During the operation, users can first deposit any supported stablecoin or a combination of them on the relevant page, and then stake the LP tokens on the designated platform.

It is worth noting that the use of USDD is more widespread in certain ecosystems. For example, the annualized yield of the USDD-USDT trading pair on a certain platform can reach as high as 41.9% (requiring the locking and staking of specific tokens), while the deposit APY for USDD on another platform is 9.52%.

Canto: High Yield Opportunity for NOTE/USDT LP

Canto is a DeFi public chain compatible with EVM in the Cosmos ecosystem, featuring functions such as DEX, lending, and the stablecoin NOTE. Currently, the total locked value in Canto is approximately 100 million USD.

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. Currently, the price of NOTE is $1.04. It is recommended to use a portion of USDT to collateralize and mint the required NOTE, then provide liquidity with NOTE and the remaining USDT, and finally stake the LP tokens on the lending platform.

However, the cross-chain operations of Canto are relatively complex, and users need to pay attention to the cross-chain steps to ensure asset safety.

Velodrome: Stable Returns of sUSD + LUSD

Velodrome is a decentralized exchange on Optimism ( DEX ), with a total locked value of 82 million USD. sUSD and LUSD are stablecoins from two different projects, both of which are relatively safe.

The current APR for liquidity mining of the sUSD/LUSD trading pair in Velodrome is 16.12%.

Helio: An Emerging Choice for HAY+BUSD

Helio Protocol is a liquidity staking and lending protocol on a certain public chain. Users can over-collateralize to borrow the decentralized stablecoin HAY in Helio, while the staked tokens will be used for liquidity staking.

A certain mainstream DEX has specifically added a StableSwap exchange entry for HAY and BUSD, indicating that HAY has a certain level of market recognition. Currently, Helio's TVL is $92 million.

Users can provide liquidity for the HAY/BUSD stablecoin trading pair in the DEX, and then stake the LP tokens in Helio. The Farming page of Helio shows that the APR for HAY/BUSD Stable LP is 19.77%.

Wombat Exchange Ecosystem: Multiple Stablecoin Options

Wombat Exchange is a stablecoin swap DEX on a certain public chain, featuring low slippage, shared liquidity, and the ability to stake with a single token. Currently, the Main Pool of Wombat shows that the median APR for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57% respectively, including the acceleration from locking WOM and holding veWOM.

Some similar applications have also emerged around Wombat, such as Wombex Finance and Magpie, which provide users with higher yield opportunities.

Risk Warning

Although these strategies provide considerable returns, the overall risk of the cryptocurrency market is still higher than that of traditional financial markets. Security incidents are frequent, and investors must diversify risks and thoroughly understand specific risk points before investing. Always remember: Do your own research.