Stablecoin Yield Strategies: Diversified Choices and Risk Analysis

In the current market environment where the US dollar index is high and risk assets are declining, holding dollar assets and earning returns has become a choice for many investors. Leading projects in the DeFi space are also actively utilizing idle dollar assets to generate profits. This article will explore several stablecoin yield strategies for readers' reference.

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 them, the amount of USDC collateral reaches 990 million, far exceeding the issuance of USDD, indicating a lower risk coefficient.

A certain trading platform recently delisted HUSD and launched multiple USDD trading pairs, while waiving the transaction fees for these trading pairs. These measures are beneficial for the development of USDD.

The Convex platform shows that the annualized yield of the USDD+3Crv pool is 19.66% APR(, while the APR of USDD+FRAXBP reaches 21.18%. The former includes four stablecoins: USDD, DAI, USDT, and USDC, while the latter includes three: USDD, FRAX, and USDC.

Steps: First, deposit the supported stablecoins through the Curve entrance on the Convex USDD+3Crv pool page, and then stake the obtained LP tokens on Convex.

It is worth noting that in the ecosystem of a certain public chain, the use of USDD is more widespread. For example, the annualized yield of the USDD-USDT trading pair on a certain platform can reach as high as 41.9% (requiring locking and staking platform tokens), while on another platform, the annualized yield for USDD deposits is 9.52%.

![stablecoin收益策略更新：USDD、Canto、Velodrome、Helio、Wombat])https://img-cdn.gateio.im/webp-social/moments-fd2ea20b9e357c2340ba90d31397414a.webp(

Canto: USDT+NOTE Strategy

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

The lending platform of Canto 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 there will be no liquidation when the collateral is USDC and USDT.

Operational suggestion: Given that the current price of NOTE is $1.04, direct purchase is not recommended. Consider using some USDT as collateral to mint the required NOTE, then provide liquidity with NOTE and the remaining USDT, and finally stake the LP tokens on the lending platform.

It is important to note that the cross-chain operation of Canto is relatively complex. To enter, you need to cross from Ethereum to Canto and then convert to Canto's ERC20 tokens; to exit, you first need to convert to Canto's native token, cross to the Cosmos cross-chain bridge Gravity Bridge, and then use a Cosmos ecosystem wallet to cross the assets back to Ethereum from Gravity Bridge.

![stablecoin yield strategy update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-f908085e59600caf56736109ea2887bc.webp(

Velodrome: sUSD+LUSD Strategy

Velodrome is a decentralized exchange on Optimism )DEX(, its code is derived from a project developed by a well-known developer on Fantom. Currently, Velodrome's TVL is 82 million USD, and its scale on Optimism surpasses that of some well-known DEX.

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

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-8cab21490ff79e0a9672744a359692e3.webp(

Helio: HAY+BUSD Strategy

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

A well-known DEX has specifically added a StableSwap exchange entry for HAY and BUSD on its Swap page, indicating that HAY has a certain level of market recognition. Currently, Helio's TVL is $92 million, with approximately $20 million in staked HAY/BUSD Stable LP.

Operation steps: Provide liquidity for the HAY/BUSD stablecoin trading pair on a certain DEX, and then stake the LP tokens into Helio. The Farming page of Helio shows that the APR for HAY/BUSD Stable LP is 19.77%.

![stablecoin yield strategy update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-3188761d6843cd48b2defbb113a27a1c.webp(

Wombat Exchange Ecosystem: Multiple Stablecoin Strategies

Wombat Exchange is a stablecoin exchange DEX on the BNB chain, featuring low slippage, shared liquidity, and the ability to stake using a single token. Its investors include a strong lineup of well-known institutions.

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 yields include the locking of WOM and the acceleration from holding veWOM.

Similar applications have also emerged around Wombat, such as Wombex Finance and Magpie, where ordinary users may obtain higher returns through deposits in these applications. Wombex currently has a TVL of $89.49 million, 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, with corresponding APRs of 11.62%, 11.82%, 14.52%, and 9.65%.

![stablecoin yield strategy update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-4c190981d5e6139f91f106bc7a27c450.webp(

Risk Warning

The overall risk of the cryptocurrency market is higher than that of traditional financial markets, with frequent security incidents. Investors should pay attention to diversifying their risks, fully understand specific risk points before investing, and conduct their own research. This article will continue to update relevant strategy information.