Compound

DeFi

USDC

<div class="finbold">
 <p class="paragraph">The decentralized finance (DeFi) ecosystem is full of opportunities and risks that could reward savvy cryptocurrency investors. For example, lending stablecoins can yield up to 20% in liquidity mining protocols.</p>
 <p class="paragraph">In particular, <a rel="noopener noreferrer nofollow" title="leading" href="https://thebittimes.com/tag/leading.html">leading</a> DeFi <a rel="noopener noreferrer nofollow" title="protocols" href="https://thebittimes.com/tag/protocols.html">protocols</a> running on Ethereum (ETH), like Aave (AAVE) and Compound (COMP), highly reward stablecoins’ suppliers. On <em>Aave</em>, investors can lend USDC and USDT with a 19.18% and 20.44% annual percentage <a rel="noopener noreferrer nofollow" title="yield" href="https://thebittimes.com/tag/yield.html">yield</a> (APY).</p>
 <p class="paragraph">Meanwhile, <em>Compound v3</em> offers 15.19% for Ethereum-based USDC. Lending the stablecoin on other chains like Polygon (MATIC), Arbitrum (ARB), or Base could reach even higher APYs. Finbold retrieved this data from each platform on March 10.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Here's a 'window of opportunity' that could see XRP hit $27 <span class="self-center text-xs text-slate-500">35 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Buy signal for 2 strong cryptocurrencies this week <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Machine learning algorithm predicts WIF price on March 31, 2024 <span class="self-center text-xs text-slate-500">4 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    What Gold, Bitcoin, and S&amp;P 500 new highs have in common <span class="self-center text-xs text-slate-500">20 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <p class="paragraph">Notably, this is a consequence of a high borrowing demand, with traders willing to pay borrow-APYs as high as 23.45% and 25.13% for USDC and USDT, respectively, on Aave. These traders might use the borrowed stablecoins to speculate on cryptocurrencies, aiming for higher returns than their APY costs.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="451" src="https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp" alt class="wp-image-159993" srcset="https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp 1024w, https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp 300w, https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp 768w, https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp 1536w, https://cdn.thebittimes.com/images/2024/03/10/0589a5e302887c3f7a2bed6207b7c907.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Stablecoins’ lending markets. Sources: <em>Aave</em> (1st) and <em>Compound</em> (2nd)
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-crypto-founders-discuss-stablecoins-lending-yield-opportunity">Crypto founders discuss stablecoins’ lending yield opportunity</h2>
 <p class="paragraph">In this context, cryptocurrency project founders and influencers discussed this stablecoins’ lending opportunity on X (formerly Twitter).</p>
 <p class="paragraph">First, Erik Voorhees, founder of ShapeShift, questioned why large financial players ignore this risk-allocation. ShapeShift recently settled illegal securities charges with the SEC, as reported by <em>Decrypt</em> on March 5. The company agreed to a cease-and-desist order and a $275,000 fine.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“How can rates get this high without enticing large financial players to convert bank fiat into stables and earn that <a rel="noopener noreferrer nofollow" title="yield" href="https://thebittimes.com/tag/yield.html">yield</a>? Gotta be one of the best risk-adjusted trades in the world right now… Am I missing something?”</p> <cite>– Erik Voorhes</cite>
 </blockquote>
 <p class="paragraph">In response, Hayden Adams, founder of Uniswap (UNI), explained the paradoxical situation of these stablecoins’ <a rel="noopener noreferrer nofollow" title="lending" href="https://thebittimes.com/tag/lending.html">lending</a> <a rel="noopener noreferrer nofollow" title="yield" href="https://thebittimes.com/tag/yield.html">yield</a>s. Interestingly, Adams believes 30% APY is not enough for “crypto native” investors, while traditional finance investors rather not take these risks. Uniswap is one of the <a rel="noopener noreferrer nofollow" title="leading" href="https://thebittimes.com/tag/leading.html">leading</a> decentralized exchanges in the market.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“For crypto natives, 30% is too low to sit in stables during a bull</p>
  <p class="paragraph">For everyone else, defi is so scary it’s not worth the risk at 30%”</p> <cite>– Hayden Adams</cite>
 </blockquote>
 <figure class="wp-block-image size-full"><img decoding="async" width="934" height="630" src="https://cdn.thebittimes.com/images/2024/03/10/1c2964778c970a91d8ce988f57440ce5.webp" alt class="wp-image-159994" srcset="https://cdn.thebittimes.com/images/2024/03/10/1c2964778c970a91d8ce988f57440ce5.webp 934w, https://cdn.thebittimes.com/images/2024/03/10/1c2964778c970a91d8ce988f57440ce5.webp 300w, https://cdn.thebittimes.com/images/2024/03/10/1c2964778c970a91d8ce988f57440ce5.webp 768w" sizes="(max-width: 934px) 100vw, 934px">
  <figcaption class="wp-element-caption">
   Erik Voorhees and Hayden Adams’s discussion on stablecoins’ lending yield. Source: X
  </figcaption>
 </figure>
 <p class="paragraph">In summary, lending platforms may offer appealing yield opportunities for supplying stablecoins like USDC and USDT. At the same time, traders can take the opposite direction by borrowing stablecoins and getting exposure to the cryptocurrency market’s short-term price speculation.</p>
 <p class="paragraph">Nevertheless, both paths have relevant risks. Tether’s and Circle’s stablecoins are subject to these entities’ control, which can freeze or seize users’ balances and positions. Therefore, investors must weigh and evaluate this and other risks before deploying capital into appealing investment opportunities.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/stablecoins-lending-yields-up-to-20-in-leading-defi-protocols-tbt82154.html">https://thebittimes.com/stablecoins-lending-yields-up-to-20-in-leading-defi-protocols-tbt82154.html</a></p>

Stablecoins’ lending yields up to 20% in leading DeFi protocols

목차

TheBitTimes

2024년 3월 10일에 게재된 다른 기사

Altcoins Eye Potential Rallies as Bitcoin Consolidates at $69,000

Bitcoin’s rally to $70K opens a bullish path for OP, TAO, STX and MNT

Altcoin Soars 900%+ in One Month: Trader Eyes Massive Move

Cryptocurrency Journalist Reveals “Optimism Is Starting to Fade” For Ethereum Spot ETFs: Insider ...

Unlocking Future Wealth: Kelexo (KLXO) Presale Partners with Ethereum (ETH) and Ripple (XRP) for ...

What is SocialFi and why is it important – In Detail

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!