How to Stake Stablecoins in 2023

This week, Cryptogpt explains how to stake stablecoins on different platforms and avoid potential pitfalls.

Table of Contents

  • Decentralized platforms
  • Curve
  • PancakeSwap
  • Yearn Finance
  • Compound
  • Uniswap
  • Centralized staking platforms
  • Nexo
  • Binance
  • Coinbase
  • Bitfinex
  • Stablecoins Staking: Risks and Considerations

With the global economy taking a turn for the worse in recent months, many cryptocurrency holders are starting to take a risk-averse approach to their investments – favoring safe, low-risk returns over wild speculation.

One of the easiest ways to accomplish this is by investing in stablecoins to get yield. This helps reduce volatility while, in some cases, allowing investors to capture inflationary interest rates without taking on unnecessary risk.

A number of platforms, including both decentralized and centralized options, now offer relatively attractive returns on stablecoin deposits. Unfortunately, due to the immense competition in the stablecoin staking space, there is no clear one-size-fits-all platform for investors. Instead, it’s better to get a broader grasp of the landscape as it stands to find the platform that fits your desired risk profile and other needs.

While there remains at least some risk in using any platform that promises to grow your investment, we’ve found a few that have stood the test of time. That said, it’s important to do your due diligence before investing with any platform as they can vary greatly in the method by which they deliver their returns. Moreover, complete security is never guaranteed.

Decentralized platforms

Over the past three years, a number of decentralized platforms have emerged, each allowing users to stake their digital assets to earn rewards.

Being decentralized, these platforms can generally be accessed by anyone, anywhere and at any time, and allow users to maintain full control of their private keys. This often comes at the compromise of lower profits.


As an automatic market maker (AMM) designed specifically for stablecoins, Curve is an option among traders who want to trade one stablecoin for another with minimal fees and friction.

Being an AMM, this platform allows users to contribute their stablecoins to one or more liquidity pools, known as “Crow Pools”. Each of these pools currently has a 0.04% fee on each trade that draws liquidity from it. Half of this is shared among liquidity providers while the other half is shared among veCRV holders.

Users also receive rewards in the form of CRV tokens, and sometimes additional rewards in the form of an associated project token – such as Synthetix (SNX) for the SUSD pool.

Image courtesy: Curve

The exact yield provided by each pool varies over time based on trading volume and TVL. It can range from as low as 0.5% APY to as high as 10%. Higher yields are generally associated with more unstable ponds.


By far the most popular AMM on the BNB chain by trading volume, PancakeSwap can be considered the cornerstone of decentralized finance (DeFi) on the platform.

Like most AMMs, PancakeSwap allows users to contribute their assets to one or more liquidity pools in order to receive a share of transaction fees. Although the platform is primarily designed for trading volatile assets, it also supports a large number of stablecoin-specific liquidity pools. These include USDC-USDT, USDT-BUSD, DAI-BUSD and TUSD-BUSD.

Exact yields vary by pool, but are currently between 1-3% APY. It can reach 10% APY especially during boom periods.

Image courtesy: PancakeSwap

These yields are made up of rewards earned from standard trading fees as well as an additional supplement in the form of CAKE tokens. PancakeSwap often changes the multiplier associated with the CAKE prize winning supplement, which can significantly increase/decrease the total yield for the respective pool.

Yearn Finance

Yearn Finance is different from the other options on this list because it allows users to optimize their yields from other platforms rather than providing their own yield service directly.

The platform leverages economies of scale to bundle users’ funds together to automatically increase their yield by minimizing transaction fees and using both traditional and non-traditional strategies. which can be difficult to achieve manually.

These include the flash mint folding strategy for Compound, the reinvestment strategy of Talky Mac and a similar reinvestment strategy for Notional Finance. They are designed to be low risk, but not risk free.

By depositing assets into one or more Yearn Finance wallets, users allow the platform to use their funds by following strategies linked to the pool. This strategy may change over time, as may the expected yield from each vault.

Like most platforms, Yearn Finance supports both volatile and fixed assets. Fixed assets provide lower yields, with around 0.01% to 2% APY expected during a bear market, and around 1-10% during a bull market. These fees are 2% management fee and 20% performance fee applied to each wallet.

Image courtesy: Yearn Finance


As an open lending protocol, Compound allows users to pool assets into one or more liquidity pools, which are then used to fund overcollateralized loans. Payments to interest takers are shared among liquidity providers based on their share of the liquidity pool.

The platform supports a wide variety of digital assets, including popular stablecoins such as DAI, TrueUSD (TUSD), USDC Coin (USDC) and Tether (USDT). Each of which provides a different yield depending on the amount of supply available and the demand on the borrowing side.

In addition to rewards from interest paid by borrowers, most pools also receive a portion of compound (COMP) token issuance – providing an additional source of return. Most of these COMP tokens are currently shared between the DAI and USDC pools.

Image courtesy: Compound

Compound uses a risk management layer called the Comptroller, which can subject borrowers to forced liquidation if their collateral ratios fall below acceptable levels. It is designed to protect creditors while ensuring that borrowers are terminated only when absolutely necessary.


By far the most popular AMM on the Ethereum blockchain by trading volume, Uniswap is known for its liquidity pools and efficient trading experience.

Because the platform allows for the creation of bilateral liquidity pools from any two assets, it allows users to contribute liquidity to whichever asset they choose — and consequently lower trading fees. Get the part.

In most cases, the uniswap trading fee is set at 0.3% of the trade size. However, there are also a handful of additional fee levels available – including 0.01% (typically stablecoin pools) and 1% (typically more exotic pairs). Currently, 100% of the fee is shared among liquidity providers, although a portion may be sent to the Uniswap Reserve in the event of future activation.

Image courtesy: Uniswap

As with all AMMs, the yield you can expect as a liquidity provider varies based on the pool, total liquidity available, trading volume and fee parameters. But in general, expect to earn between 1-3% APY per year by contributing to the popular stablecoin liquidity pools on Uniswap.

Centralized staking platforms

While decentralized platforms have gained a lot of attention in recent years, centralized platforms have been the most popular with investors – largely due to their accessibility, better brand recognition, and often higher interest rates. .

That said, they typically require users to trust them with the custody of their funds and the management of their private keys, which may be unacceptable to some.


Currently the largest crypto loan provider, Nexo, has an AUM of over $15 billion and serves over 4 million customers worldwide. The platform is known for the high returns it provides on stablecoin deposits and the wide variety of assets it supports.

Like most lenders, the platform passes on the returns from its lending business to its depositors and pockets a small percentage for its operations.

Nexo currently has a base rate of 8% APY on popular stablecoins like USDT, USDC, DAI, and USDP, and also offers 8% interest on fiat deposits — including US Dollars (USD), Euros (EUR). , and British Pound Sterling (GBP).

Users have the opportunity to further increase these rates by holding NEXO tokens, unlocking up to 10% interest on stablecoin and fiat deposits. The highest reward tier (Platinum) requires users to hold at least 10% of their portfolio in NEXO tokens, i.e. a $100,000 portfolio would need to invest at least $10,000 in NEXO.

Nexo has recently introduced maximum balance limits and lower yields for deposits above this limit. Current limits for basic users are shown below:

Image courtesy: Nexo


When it comes to cryptocurrency service providers, Binance is as versatile as they come, given the sheer range of features it provides – including an exchange platform, OTC desk, launchpad, crypto debit card and Earning Dashboard.

Binance’s Earn platform has a variety of savings and staking products, allowing users to earn returns on both volatile and stable assets. Due to the large number of assets it supports and its competitive interest rates, it is one of the most popular choices for those looking for savings products.

For stablecoins, Binance offers flexible term and fixed term investment vehicles, giving users the freedom to either withdraw their assets whenever they want or commit to a fixed term for a higher APY. It also implements a tiered yield model, whereby reserves above a certain threshold earn lower returns.

The amount you can expect to earn varies based on the coin, term and size of your portfolio, but generally, between 1-10% APY is standard. These figures are subject to change based on supply, demand and market conditions.

Image courtesy: Binance


In addition to its popular cryptocurrency exchange platform, Coinbase also offers a non-custodial wallet, a crypto debit card, a derivatives trading platform and brokerage solutions.

Coinbase is unusual in that it does not provide an independent asset staking dashboard, but instead allows users to earn rewards simply by topping up their account with supported digital assets. That said, users may need to opt-in to this feature to start earning rewards on their deposits.

Image courtesy: Coinbase

Currently, the platform primarily offers rewards on volatile assets, such as Ethereum (ETH), Cosmos (ATOM) and Tezos (XTZ), but also supports stablecoins such as USD Coin (USDC) and DAI. .

The yield provided varies over time based on various factors but currently sits at around 0.15% APY for DAI and USDC. This is among the lowest rates in the industry.


One of the longest-running cryptocurrency exchange platforms, Bitfinex has close ties to Tether – the most popular USD stablecoin currently in operation – as Tether Limited is owned by Bitfinex’s parent company iFinex.

Since launching in 2012, Bitfinex has seen its exchange offering grow in scope and usage, and now offers a margin trading platform, OTC desk, lending service, securities exchange and more.

Like many popular exchanges, Bitfinex allows users to receive a relatively secure return on their pooled assets through shares (for proof of stake) or its lending platform — where users pay for their contributed assets. Flash return rate (FRR) can be obtained. . FRR is the interest rate paid by borrowers, less the 15-18% commission charged by Bitfinex.

As always, the amount you can expect to earn on your fixed assets varies based on supply and demand. But right now, around 2.99% APY is available for USDT deposits. A complete list of supporting assets is provided below.

Image courtesy: Bitfinex is a platform that allows users to buy, trade and earn profits on cryptocurrencies through a dedicated mobile app.
The platform is known for its crypto-enabled debit cards and cryptocurrency savings plans, which allow users to earn a fixed return on their accumulated assets.

As of writing,’s savings product supports more than 40 different cryptocurrencies and stablecoins. Yields vary from asset to asset, but currently users can earn up to 8% APY on their stablecoins.

Like most cryptocurrency savings providers, allows users to increase their rewards by investing the platform’s native token (CRO) and committing to a fixed term. It also imposes a maximum quota per user, which depends on the user’s card tier (which is determined by the amount of CRO lock).

Currently, reward rates for USDC and USDT range from 0.4% for flexible term users with less than $400 CRO stake, to 8% for those with a $40,000 CRO stake and a three-month term. are committed to

Image courtesy:

Stablecoins Staking: Risks and Considerations

As with any investment, there are risks that you will need to consider when using the platform to make a profit on your stablecoins.

First and foremost is the risk of theft. While most platforms have several defense mechanisms in place to protect users, such as Binance’s Basic Protection and Nexo’s Insurance Policy, these are not necessarily comprehensive and may not protect all users in all situations. .

Likewise, it’s not uncommon for platforms to get hacked or their business model to fail – potentially putting your funds at risk.

Because of this, it’s important that you do your due diligence and investigate the reputation and security systems of your chosen platform, and possibly take additional security measures on your own — such as decentralized insurance or diversification.

Be wary of offers that sound too good to be true, and never invest more than you can afford to lose.