Latest Trends in Stablecoin Yield Strategies

The current US dollar index is high, and risk assets are declining, making holding dollar assets a wise choice. How to obtain yields from these assets has become the focus of attention. Many leading DeFi projects are also actively using idle dollar assets to seek returns. This article will introduce several stablecoin yield strategies worth noting for readers.

Convex: USDD+3Crv

USDD is a stablecoin managed by the TRON DAO Reserve. 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 these, the collateral in USDC amounts to 990 million, far 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 waiving related fees, which is beneficial for the development of USDD.

Convex shows that the APR for the USDD+3Crv pool is 19.66%, while the APR for the 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. When operating, first deposit the supported stablecoins on the Convex USDD+3Crv pool page, and then stake the LP tokens to Convex.

In the Tron ecosystem, USDD is more widely used. The APY for the USDD-USDT trading pair on a certain lending platform can reach as high as 41.9% (requiring lock-up and staking of platform tokens), while another lending platform offers a USDD deposit APY of 9.52%.

Canto: USDT+NOTE

Canto is an EVM-compatible DeFi public chain within the Cosmos ecosystem, featuring DEX, lending, and the stablecoin NOTE functionality. Currently, Canto's TVL is approximately $100 million.

The Canto 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 through over-collateralization in Canto, and the collateral of USDC and USDT will not experience liquidation. The current price of NOTE is $1.04, and it is recommended to mint NOTE by partially collateralizing USDT, provide liquidity with NOTE and the remaining USDT, and then stake the LP tokens on the lending platform.

It should be noted that the Canto cross-chain process is quite cumbersome. When entering, you need to cross from Ethereum to Canto and convert it into Canto ERC20 tokens. When exiting, you must first convert it into Canto native tokens, cross to the Gravity Bridge, and then switch to the Cosmos wallet to transfer the assets back to Ethereum.

Velodrome: sUSD+LUSD

Velodrome is a DEX on Optimism, derived from Andre Cronje's Solidly developed on Fantom. Currently, Velodrome's TVL is $82 million, surpassing Curve and Uniswap V3 on Optimism.

sUSD and LUSD are stablecoins from Synthetix and Liquity, respectively, and are relatively safe. Currently, the liquidity mining APR for the sUSD/LUSD trading pair in Velodrome is 16.12%.

Helio: HAY+BUSD

Helio Protocol is a liquidity staking and lending protocol on the BNB chain. Users can over-collateralize to borrow the decentralized stablecoin HAY, with the staked BNB used for liquidity staking.

A large DEX has specifically added a StableSwap exchange entry for HAY and BUSD on the Swap page, indicating that HAY has a certain background. Currently, Helio's TVL is $92 million, with approximately $20 million in staked HAY/BUSD Stable LP.

Liquidity can be provided for the HAY/BUSD stablecoin trading pair on DEX, and then the LP tokens can be staked in Helio, with the current APR at 19.77%.

Wombat Exchange Ecosystem: USDC, USDT, DAI, BUSD

Wombat Exchange is a stablecoin exchange DEX on the BNB chain, featuring low slippage, shared liquidity, and the ability to stake a single token, with stablecoin trading fees of only 0.01%.

Wombat Exchange's investors include several well-known institutions and have close ties with a large trading platform. Currently, the median APRs of Wombat's main pool USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57%, respectively, which include locked WOM and holding veWOM for acceleration.

There are applications similar to Convex around Wombat, such as Wombex Finance and Magpie, where ordinary users can earn higher returns by depositing through these applications. Wombex currently has a TVL of 89.49 million USD, with deposit APRs for USDC, USDT, DAI, and BUSD being 13.93%, 12.71%, 15.29%, and 17.16% respectively. Magpie has a TVL of 25.90 million USD, with corresponding APRs of 11.62%, 11.82%, 14.52%, and 9.65%.

Risk Warning: The overall risk of the cryptocurrency market is higher than that of traditional financial markets, with frequent security incidents. Please be sure to diversify risks, fully understand specific risk points before investing, and conduct your own research and decision-making.