Analysis of Stablecoin Yield Strategies: Diversified Options and Potential Risks

Recently, the US dollar index has been running at high levels, putting downward pressure on risk assets. Against this backdrop, holding US dollar assets and seeking returns has become a choice for many investors. It is worth noting that some leading decentralized finance ( DeFi ) projects are also actively utilizing idle US dollar assets to generate returns. For example, MakerDAO recently passed a proposal to transfer up to $1.6 billion in USDC to a certain custody service to achieve an annualized return of 1.5%.

This article will explore several stablecoin yield strategies to provide reference for investors.

USDD+3Crv Strategy

USDD is a stablecoin managed by a certain blockchain ecosystem. As of October 27, the issuance of USDD is approximately 725 million, while the collateral value reaches up to 2.23 billion USD, with a collateralization ratio exceeding 300%. The amount of USDC alone in the collateral is close to 1 billion, significantly surpassing the issuance of USDD, indicating a lower risk coefficient.

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

On a certain DeFi platform, the annualized yield of the USDD+3Crv pool reached 19.66% APR (, while the APR for USDD+FRAXBP is even higher, reaching 21.18%. The former includes four stablecoins: USDD, DAI, USDT, and USDC, while the latter includes three: USDD, FRAX, and USDC.

In the native ecosystem of USDD, its applications are more extensive. For example, the annualized yield of the USDD-USDT trading pair on a certain DeFi platform can reach up to 41.9% (requires locking and staking platform tokens), while on another lending platform, the annualized yield for USDD deposits is 9.52%.

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Canto: USDT+NOTE Strategy

Canto is an EVM-compatible DeFi public chain that offers features such as DEX, lending, and the stablecoin NOTE. Currently, the total locked value of the Canto ecosystem is approximately $100 million.

On Canto's lending platform, 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 the Canto ecosystem, and there will be no liquidation when the collateral is USDC and USDT.

It is worth noting that the cross-chain operations of Canto are relatively complex. To enter, one needs to cross-chain from Ethereum to Canto, and then convert it into Canto's ERC20 token. To exit, one must first convert to Canto's native coin, then cross-chain via a certain cross-chain bridge, and finally switch to the corresponding ecosystem wallet to transfer the assets back to Ethereum.

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Velodrome: sUSD+LUSD Strategy

Velodrome is a decentralized exchange on a Layer 2 network, with its code derived from a project developed by another well-known developer on different public chains. Currently, Velodrome's TVL is approximately $82 million, surpassing the scale of some mainstream DEXs on the Layer 2 network.

sUSD and LUSD are stablecoins from two different DeFi protocols, both of which are considered relatively safe. Currently, the liquidity mining APR for the sUSD/LUSD trading pair in Velodrome is 16.12%.

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Helio: HAY+BUSD Strategy

Helio Protocol is a liquidity 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 liquidity staking.

A certain mainstream DEX has specifically added an entry for exchanging HAY and BUSD stablecoins on its Swap page, reflecting that HAY has a certain level of market recognition. Currently, Helio's TVL is approximately $92 million, with about $20 million in staked HAY/BUSD stable LP.

On the Farming page of Helio, the APR for HAY/BUSD Stable LP is displayed as 19.77%.

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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 trading fee for stablecoins on the platform is only 0.01%.

Currently, Wombat's main pool shows that the median APR for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57%, respectively. These figures include accelerated yields from locked platform tokens and holding governance tokens. If no locking is done, the actual yield will be lower.

Applications similar to other ecosystems have also emerged around Wombat, such as certain yield aggregation platforms. The TVL of these platforms reached 89.49 million USD and 25.90 million USD, providing users with higher deposit APRs.

![stablecoin收益策略更新：USDD、Canto、Velodrome、Helio、Wombat])https://img-cdn.gateio.im/webp-social/moments-4c190981d5e6139f91f106bc7a27c450.webp(

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 should act with caution, diversify risks, and fully understand the specific risk points before investing. It is recommended to follow the "DYOR" (Do Your Own Research) principle and conduct thorough independent research and judgment.