Latest Trends in Stablecoin Yield Strategies: Diverse Options and Risk Analysis

In the current market environment with the US dollar index at a high and risk assets declining, holding US dollar assets and generating returns has become a choice for many investors. Recently, some leading DeFi projects have also been actively seeking returns by utilizing idle US dollar assets. This article will introduce you to the latest trends in several stablecoin yield strategies.

Convex: USDD+3Crv Strategy

USDD is a stablecoin managed by a certain organization. As of October 27, the issuance of USDD is 725 million, with collateral value of $2.23 billion and a collateralization rate of over 300%. Among them, the amount of USDC collateral reaches 990 million, far exceeding the issuance of USDD, indicating a lower risk coefficient. Recently, a certain trading platform delisted HUSD while listing multiple USDD trading pairs and waiving related transaction fees, and these measures have had a positive impact on USDD.

The Convex platform shows that the annualized yield of the USDD+3Crv pool is 19.66% APR (, and the APR for 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 operation steps include depositing supported stablecoins on the Convex USDD+3Crv pool page, and then staking the obtained LP tokens on Convex.

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 up to 41.9% (requires locking and staking platform tokens), while on another platform, the annualized yield for USDD deposits is 9.52%.

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-f908085e59600caf56736109ea2887bc.webp(

Canto: USDT+NOTE Strategy

Canto is an EVM-compatible DeFi public chain that offers services such as DEX, lending, and the stablecoin NOTE. Currently, Canto's total locked value )TVL( is approximately 100 million dollars.

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 the stablecoin minted through over-collateralization in Canto, and there will be no liquidation when the collateral is USDC and USDT. Given that the current price of NOTE is $1.04, it is recommended to mint NOTE by partially collateralizing with USDT, 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 require multiple steps to complete the cross-chain transfer of assets.

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-8cab21490ff79e0a9672744a359692e3.webp(

Velodrome: sUSD+LUSD Strategy

Velodrome is a DEX on a Layer2 network, with its code derived from another well-known developer's project. Currently, Velodrome's TVL is $82 million, ranking higher than some well-known DEXs on that Layer2 network.

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

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-3188761d6843cd48b2defbb113a27a1c.webp(

Helio: HAY+BUSD Strategy

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

A well-known DEX has added a StableSwap exchange entry for HAY and BUSD on its Swap page, reflecting that HAY has a certain level of market recognition. Currently, Helio's TVL is 92 million USD, with approximately 20 million USD in staked HAY/BUSD Stable LP.

Investors can provide liquidity for the HAY/BUSD stablecoin trading pair in the DEX, and then stake the LP tokens in Helio, with the currently displayed APR of 19.77%.

![stablecoin yield strategy update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-4c190981d5e6139f91f106bc7a27c450.webp(

Wombat Exchange Ecosystem: Multi-Coin Strategy

Wombat Exchange is a stablecoin exchange DEX on a certain public chain, featuring low slippage, shared liquidity, and the ability to stake with a single token. Its investor lineup is strong, including several well-known institutions.

Currently, Wombat's Main Pool shows that the median APR for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57%, respectively. These figures include the accelerated earnings from locking WOM and holding veWOM.

Similar applications have emerged around Wombat, such as Wombex Finance and Magpie, through which deposits may yield higher returns.

Finally, it is important to remind that the overall risk of the crypto market is higher than that of traditional financial markets, and security incidents occur from time to time. Investors should diversify their risks, fully understand the specific risk points before investing, and do their own research.