Yield Strategies
There are two primary ways to earn yield from stablecoins:- Yield from reserves — earned from the interest generated by the stablecoin’s underlying reserves, which are typically invested in U.S. Treasury bills or equivalent cash instruments.
- Yield from staking — earned by locking or delegating tokens to validators or protocols that generate onchain returns.
1. Yield from reserves
The table below compares different ways to access stablecoin-based yield, their setup requirements, and key trade-offs.| Option | Description | Notes |
|---|---|---|
| USDC, USDT | Negotiate a direct revenue-sharing agreement with the stablecoin issuer. | Typically limited to large partners; smaller revenue share; allows direct staking. |
| USDG | Use a stablecoin that automatically accrues interest to holders or distributors. | Easier to get started; usually requires swapping to USDC/USDT before staking or transferring out, if the recipient prefers another stable. By end of Q4 / beginning of Q1, this will be achievable via the transfer API without requiring a manual swap. |
| Issue your own stablecoin | Create your proprietary stablecoin backed by your own reserves. | Around 10-20 bps more yield and control vs a non-standard token; higher setup costs, complexity, and slower go-to-market. Similar swapping requirements vs USDG. |