Editor's Note: This article discusses strategies and yields of interest-bearing stablecoins, including how different platforms generate revenue through investments in U.S. Treasuries, DeFi lending, and real-world assets. Each stablecoin has different strategies and yield rates, such as earning through staking, lending, or liquidity mining. The article also mentions the characteristics of these stablecoins, such as no lock-up periods and automatic yield accumulation, making them suitable for long-term investment and users who prioritize stability, providing an innovative decentralized financial solution.
Following is the original content (slightly edited for readability):
What is an interest-bearing stablecoin? It is a stablecoin that maintains a 1:1 peg to the U.S. dollar while generating passive income. How is this achieved? Through lending, staking, or investing in real-world assets like U.S. Treasuries. Think of it as an on-chain money market fund, but programmable and borderless.
In a stablecoin market exceeding $225 billion, with annual transaction volumes in the trillions, interest-bearing stablecoins are emerging as:
• On-chain savings accounts
• Yield products backed by RWA
• Alternatives to banks and fintech
• Offering annual yields of approximately 3–15% while maintaining dollar-pegged assets
Let's break down how mainstream protocols generate these yields
sDAI – Provided by MakerDAO via @sparkdotfi
→ Annual Yield: Approximately 5–8% (floating)
→ Strategy: DSR (Dai Savings Rate) yields from multiple sources
• Deposit DAI into Spark
• Yield sources include:
• Stable fees from loans
• Liquidation revenues
• DeFi lending (e.g., Aave)
• Tokenized U.S. Treasury assets
You'll receive sDAI, an ERC-4626 standard token that automatically grows in value (without rebasing), with yield rates adjusted by governance mechanisms based on market conditions.
sUSDe – Synthetic Yield Provided by @Ethena_Labs
→ Annual Yield: Approximately 8–15% (up to 29% in bull markets)
→ Strategy: Delta-neutral yield from Ethereum
• Deposit ETH → Stake via Lido
• Simultaneously short ETH on CEXs
• Funding rate + staking rewards = yield
sUSDe holders receive compounded yields. High yield = high risk, but completely independent of banks.
USP – Provided by @Pi_Protocol_ (Expected to be Released in the Second Half of 2025)
→ Annual Yield: Approximately 4–5% (Predicted)
→ Strategy: Tokenization of US Treasury Bonds, Money Market Funds (MMFs), Insurance
• Over-collateralized Real-World Asset (RWA) Support
• Dual-Token Model:
• USP (Stablecoin)
• USI (Yield)
• USPi Non-Fungible Tokens Provide Yield Sharing + Governance Rights
Aimed at Aligning Users with Long-Term Platform Growth.
OUSD – Provided by @OriginProtocol
→ Annual Yield: Approximately 4–7%
→ Strategy: DeFi Native, Automatic Rebasing Yield
• Lending USDT, USDC, Dai to Aave, Compound, Morpho
• Providing Liquidity on Curve + Convex
• Daily Rebasing to Increase Wallet Balance
No Staking Required, No Lockup.
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