Stablecoin Yield Strategy Analysis: Diversified Choices and Risk Assessment

Currently, the US dollar index is high, and risk assets are generally falling, making holding dollar assets a choice for many investors. It is noteworthy that some leading DeFi projects are also actively utilizing idle dollar assets to generate returns. Recently, MakerDAO passed an important proposal to transfer up to $1.6 billion in USDC to a certain custody service to achieve an annualized yield of 1.5%.

This article will explore several stablecoin yield strategies, providing investors with diversified options.

Convex: USDD+3Crv

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 ratio exceeding 300%. The amount of USDC among the collateral is 990 million, far exceeding the issuance of USDD, indicating a lower risk coefficient.

A trading platform has listed multiple USDD trading pairs and waived the fees for the related trading pairs, which is beneficial for the development of USDD.

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

Operation steps: First, deposit using supported stablecoins on the Convex USDD+3Crv pool page, and then stake the LP tokens on Convex.

In the native ecosystem of USDD, its usage is more widespread. For example, on one platform, the annualized yield of the USDD-USDT trading pair can reach as high as 41.9% (requiring locking and staking of 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

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

Canto's lending platform shows that the APR for the NOTE/USDT LP is 32.14%, and the APR for the NOTE/USDC LP is 29.47%. NOTE is a stablecoin minted in Canto through over-collateralization, and there will be no liquidation when the collateral is USDC and USDT.

Operation suggestion: You can use part of the USDT as collateral to mint the required NOTE, provide liquidity with NOTE and the remaining USDT, and then stake the LP tokens on the lending platform.

It is important to note that Canto's cross-chain operations are relatively complex, requiring multiple steps for both entry and exit.

![stablecoin收益策略更新：USDD、Canto、Velodrome、Helio、Wombat])https://img-cdn.gateio.im/webp-social/moments-f908085e59600caf56736109ea2887bc.webp(

Velodrome: sUSD+LUSD

Velodrome is a DEX on Optimism, originating from a well-known developer's project on Fantom. Currently, Velodrome's TVL is $82 million, and its scale on Optimism surpasses that of some well-known DEXs.

sUSD and LUSD come from two relatively secure protocols. Currently, the APR for the sUSD/LUSD trading pair liquidity mining in Velodrome is 16.12%.

![stablecoin收益策略更新：USDD、Canto、Velodrome、Helio、Wombat])https://img-cdn.gateio.im/webp-social/moments-8cab21490ff79e0a9672744a359692e3.webp(

Helio: HAY+BUSD

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

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

Steps: Provide liquidity for the HAY/BUSD stablecoin trading pair in the 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%.

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Wombat Exchange Ecosystem: Multiple Stablecoin Options

Wombat Exchange is a stablecoin exchange DEX on the BNB Chain, featuring low slippage and shared liquidity. Its investors include several well-known institutions and it has close ties to a large trading platform.

The Main Pool of Wombat shows that the median APRs for USDC, USDT, DAI, and BUSD are 11.44%, 11.14%, 10.85%, and 7.57%, respectively, which include the acceleration of locked WOM and holding veWOM.

Similar applications like Convex have also emerged around Wombat, such as Wombex Finance and Magpie. These platforms offer users higher yield opportunities.

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Risk Warning

The risks in the cryptocurrency market are higher than those in traditional financial markets, with frequent security incidents. Investors should diversify their risks, thoroughly understand the specific risk points of each project, and make prudent decisions. This article will continue to update relevant strategy analyses.