Latest Updates on Stablecoin Yield Strategies: Diversified Options and Risk Warnings

Recently, with the US dollar index at a high level, risk assets have generally declined, making dollar assets seem like a good choice. More importantly, how to gain returns from these assets has become the focus of many investors. It is worth noting that some leading DeFi projects are also actively seeking returns by utilizing idle dollar assets. This article will introduce several currently prominent stablecoin yield strategies to the readers.

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 rate of over 300%. Among these, the amount of USDC collateral alone reaches 990 million, far exceeding the issuance of USDD, indicating a lower risk coefficient.

According to data from a trading platform, the annualized yield of the USDD+3Crv pool is 19.66%, while the APR of USDD+FRAXBP reaches 21.18%. The former includes four stablecoins: USDD, DAI, USDT, and USDC, while the latter covers three stablecoins: USDD, FRAX, and USDC.

Canto: USDT+NOTE Strategy

Canto is a DeFi public chain compatible with EVM in the Cosmos ecosystem, featuring functions such as DEX, lending, and the stablecoin NOTE. According to data, the total locked value in Canto 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 through over-collateralization in Canto, and liquidation will not occur when the collateral is USDC and USDT.

Velodrome: sUSD+LUSD Strategy

Velodrome is a decentralized exchange on the Optimism network. Currently, Velodrome's TVL is $82 million, surpassing some well-known DEXs on Optimism.

sUSD and LUSD are stablecoins from two different projects, both of which are relatively safe. The current APR for the sUSD/LUSD trading pair in Velodrome's liquidity mining is 16.12%.

Helio: HAY+BUSD Strategy

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

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

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. The platform has a strong lineup of investors, including several well-known institutions.

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. These figures include the locking of WOM and the holding of veWOM for acceleration. If WOM is not locked, the returns would be lower.

Applications similar to other platforms have also emerged around Wombat, such as Wombex Finance and Magpie, allowing ordinary users to earn higher returns by depositing through these applications.

Risk Warning

It is important to emphasize that the overall risk of the cryptocurrency market is higher than that of traditional financial markets, and security incidents occur from time to time. Investors must act cautiously when participating in these strategies, diversify risks, and gain a thorough understanding of the projects involved. Remember to fully understand the relevant risk points before investing and do your own research.