Stablecoin Yield Strategy Analysis: Diversified Options and Risk Control

In the current market environment, the value of dollar assets is highlighted. Mainstream DeFi projects are also actively utilizing idle dollar assets to generate returns. This article will explore the latest dynamics of several stablecoin yield strategies.

Convex: USDD+3Crv Strategy

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 in USDC is 990 million, significantly exceeding the issuance of USDD, resulting in a lower risk coefficient.

A certain trading platform recently delisted HUSD while launching multiple USDD trading pairs and waived related fees. These measures are beneficial for the development of USDD.

Data shows that the annualized yield of the USDD+3Crv pool on Convex is 19.66%, and the annualized yield of USDD+FRAXBP is 21.18%. The steps to operate are to first provide liquidity on Curve, and then stake the LP tokens to Convex.

In a certain public chain ecosystem, the application of USDD is more widespread. For example, the annualized yield of the USDD-USDT trading pair on a certain platform can reach up to 41.9% (requiring locking and staking of platform tokens), while the annualized yield for deposits of USDD on another platform is 9.52%.

Canto: USDT+NOTE Strategy

Canto is an EVM-compatible DeFi public chain within the Cosmos ecosystem, featuring DEX, lending, and the stablecoin NOTE. Currently, the total locked value of Canto is approximately 100 million USD.

Canto's lending platform shows that the annualized yield for NOTE/USDT LP is 32.14% and 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.

Operational Advice: You can use part of your USDT as collateral to mint NOTE, then use NOTE and the remaining USDT to provide liquidity, and finally stake the LP tokens on the lending platform.

It should be noted that the cross-chain operations of Canto are relatively complex, and users need to perform multiple cross-chain operations when entering and exiting.

Velodrome: sUSD+LUSD Strategy

Velodrome is a decentralized exchange on Optimism, derived from a project by a well-known developer on Fantom. Currently, Velodrome's total value locked is $82 million, surpassing some mainstream trading platforms on Optimism.

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

Helio: HAY+BUSD Strategy

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

A mainstream trading platform has added a dedicated stablecoin exchange entry for HAY and BUSD, indicating that HAY has a certain level of market recognition. Currently, Helio's total locked value is 92 million USD.

Operation suggestion: Provide liquidity for the HAY/BUSD stablecoin trading pair on a certain trading platform, and then stake the LP tokens to Helio. The currently displayed annualized yield is 19.77%.

Wombat Exchange Ecosystem: Multi-Coin Strategies

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

Currently, the Wombat main pool shows that the median annualized yield for USDC, USDT, DAI, and BUSD is 11.44%, 11.14%, 10.85%, and 7.57% respectively (including lock-up and holding platform tokens for acceleration).

There are also some applications similar to a well-known project surrounding Wombat, such as Wombex Finance and Magpie, which may offer higher yields.

Risk Warning: The overall risk in the cryptocurrency market is relatively high, with frequent security incidents. It is recommended that investors diversify their risks, thoroughly understand the specific risk points of each project, and make cautious decisions.