Analysis of Stablecoin Yield Strategies: Opportunities for Returns Under Diversified Choices

In the current market environment where the US dollar index is high and risk assets are declining, holding US dollar assets and generating returns has become the preferred strategy for many investors. Leading DeFi projects are also actively utilizing idle US dollar assets to generate returns. This article will explore several stablecoin yield strategies to provide investors with diversified options.

Convex: USDD+3Crv Pool

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

A certain trading platform has recently delisted HUSD while launching multiple trading pairs for USDD and waived the transaction fees for these pairs. These measures may have a positive impact on USDD.

The APR for the USDD+3Crv pool on Convex is 19.66%, 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. Investors can deposit supported stablecoins through the Curve entry on the USDD+3Crv pool page on Convex, and then stake the LP tokens in Convex.

Canto: USDT+NOTE

Canto is an EVM-compatible DeFi public chain in the Cosmos ecosystem, providing services such as DEX, lending, and the stablecoin NOTE. Currently, Canto's TVL 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 liquidation will not occur when the collateral is USDC and USDT.

Investors may consider using part of their USDT as collateral to mint the required NOTE, then provide liquidity with both NOTE and the remaining USDT, and subsequently stake the LP tokens on the lending platform.

It is important to note that Canto's cross-chain operations are relatively complex, and investors should carefully assess the operational costs.

Velodrome: sUSD+LUSD

Velodrome is a DEX on Optimism with a TVL of $82 million, surpassing several well-known DEXs on that chain.

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

Helio: HAY+BUSD

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

A well-known DEX has specially 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.

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

Wombat Exchange Ecosystem: USDC, USDT, DAI, BUSD

Wombat Exchange is a stablecoin exchange DEX on a specific public chain, featuring low slippage, shared liquidity, and the ability to stake using a single token. The transaction fee rate for stablecoin trading is only 0.01%.

Currently, the Main Pool of Wombat shows that the median APRs for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57%, respectively, including the lock-up of WOM and the acceleration of holding veWOM. If there is no lock-up of WOM, the yield will be lower.

Similar applications to Convex have emerged around Wombat, such as Wombex Finance and Magpie, where ordinary users can potentially earn higher yields by depositing through these applications.

When investors choose stablecoin yield strategies, they should fully understand the risks of each project, reasonably diversify their investments, and implement effective risk management. The overall risk in the cryptocurrency market is high, and security incidents are frequent. Please make decisions cautiously and fully understand the related risks.