Latest Trends in Stablecoin Yield Strategies

Recently, the US dollar index has been running at a high level, and risk assets have performed poorly. In this market environment, holding dollar assets and obtaining returns has become a good choice. Large DeFi projects are also actively using idle dollar assets to generate returns. This article will introduce several current popular stablecoin yield strategies.

Convex: USDD+3Crv Strategy

USDD is the stablecoin of the TRON ecosystem, managed by the TRON DAO Reserve. As of October 27, the issuance of USDD is 725 million, with collateral value of 2.23 billion USD and a collateralization rate exceeding 300%. Among them, USDC collateral amounts to 990 million, far exceeding the issuance of USDD, making it relatively low risk.

The annualized yield of the USDD+3Crv pool on Convex (APR) is 19.66%, while the APR of the USDD+FRAXBP pool is 21.18%. The method of operation is to first deposit stablecoins into Curve to obtain LP tokens, and then stake the LP tokens on Convex.

In the TRON ecosystem, the use of USDD is more widespread. The annualized yield of the USDD-USDT trading pair on SUN.io can reach as high as 41.9%(, requiring the locking and staking of SUN). The annualized yield for deposits of USDD in JustLend is 9.52%.

Canto: USDT+NOTE Strategy

Canto is an EVM-compatible DeFi public chain in the Cosmos ecosystem, featuring DEX, lending, and stablecoin NOTE functions. Currently, Canto's total locked value ( TVL ) is approximately 100 million USD.

The lending market of Canto shows that the APR for NOTE/USDT LP is 32.14% and for NOTE/USDC LP is 29.47%. NOTE is a stablecoin minted through over-collateralization in Canto, and no liquidation occurs when the collateral is USDC and USDT.

The method is to use part of the USDT as collateral to mint NOTE, then use the NOTE and the remaining USDT to provide liquidity, and then stake the LP tokens in the lending market. However, it should be noted that the cross-chain operation of Canto is relatively complex.

Velodrome: sUSD+LUSD Strategy

Velodrome is a DEX on Optimism, derived from Solidly developed by Andre Cronje. 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. The APR for liquidity mining of the sUSD/LUSD trading pair in Velodrome is 16.12%.

Helio: HAY+BUSD Strategy

Helio Protocol is a liquidity staking and lending protocol on the BNB chain. Users can over-collateralize to borrow HAY stablecoin, and the staked BNB will be used for liquidity staking. Currently, Helio's TVL is $92 million.

The method is to provide liquidity for the HAY/BUSD stablecoin trading pair on PancakeSwap, and then stake the LP tokens in Helio, with the current APR being 19.77%.

Wombat Exchange Ecosystem Strategy

Wombat Exchange is a stablecoin exchange DEX on the BNB chain, characterized by low slippage and shared liquidity. The APR for USDC, USDT, DAI, and BUSD in its main liquidity pool are 11.44%, 11.14%, 10.85%, and 7.57% respectively. ( includes WOM staking acceleration ).

Applications similar to Convex have also emerged around Wombat, such as Wombex Finance and Magpie, which can provide users with higher yields. The deposit APRs for Wombex's USDC, USDT, DAI, and BUSD are 13.93%, 12.71%, 15.29%, and 17.16%, respectively.

It is important to note that the overall risk of the cryptocurrency market is relatively high. Please fully understand the relevant risks before investing and diversify your investments appropriately.