Where Can I Get the Best Stablecoin APY? This article will help you find the best way to earn interest on stable coins including USDC, USDT, DAI, and more. Let's take a closer look.
What is APY?
The annual percentage yield (APY) is a standardized way to calculate the real rate of return on investments for one year. APY is considered the real rate of return earned on investment because it takes into account compound interest. Compound interest is added periodically to the total investment, increasing the account balance, which makes the subsequent money earned from interest larger.
Where Can I Get the Best Stablecoin APY?
AAVE
Because they provide the highest returns, the lowest borrowing rates, and a variety of tokens like USDC, USDT, DAI, and FRAX, AAVE is the best stablecoin farm. You can access AAVE from a variety of networks including Ethereum, Avalanche, Optimism, Polygon and more. In comparison to other protocols, their platform is the most secure and has the highest percentage of Total Value Locked.
AAVE currently has over $17B in liquidity locked on their money market earning yield.
AAVE currently has over $17B in liquidity locked on their money market earning yield.
USD APY: 3-5%
Chains: ETH, AVAX, MATIC, Arbitrum, Fantom, Harmony
Tokens: DAI, USDC, USDT and FRAX
Stargate Finance
Stargate Finance is a platform that allows stablecoins like USDC, USDT, and DAI to exchange chains. Investors can help the pools that enable these swaps' high yields by providing them with liquidity. Some of the biggest names in the industry, such Alameda Research, FTX, Naval, and others, are supporting this stablecoin swap exchange as well.
The Stargate Finance token rewards are mainly paid out in STG (their native token). This plarform is growing very quickly so it could be a great way to earn STG tokens to invest for free by providing stablecoin liquidity.
USD APY: 3-4%
Chains: ETH, AVAX, Arbitrum, Polygon, Binance Smart Chain
Tokens: USDC, USDT, and BUSD
Convex Finance
Convex Finance is another way to deposit stablecoins and earn high interest rates. Because of the protocol's compatibility with Curve Finance, customers can withdraw their USD stablecoin stake from Curve and deposit it on Convex for a higher yield.
With approximately $4.5 billion in deposits, the Convex protocol is one of the largest DeFi protocols by Total Value Locked (TVL). Currently, the FRAX/USDC pool, which returns 3% and has more than $800 million in deposits, is the best stablecoin farm on Convex.
USD APY: 3-16% (long-tail risky stablecoins available)
Chains: Ethereum only
Tokens: USDC, USDT, BUSD, FRAX, MIM, LUSD, TUSD, DAI, cUSD, and more
Where Can I Get the Best Stablecoin APY? What is APY? - Hopefully, this article can help you to get some knowledge.
