Stablecoins offer price stability and the opportunity for passive income through DeFi protocols. Learn about the main strategies and how to start generating returns from your digital assets.
What are stablecoins?
Stablecoins are cryptocurrencies whose value is pegged to a traditional currency, usually the US dollar or euro. The most popular stablecoins include USDC, USDT, and DAI. They combine the stability of fiat currencies with the advantages of blockchain technology — fast transfers, low fees, and programmability through smart contracts.
Yield strategies
There are several main ways to generate yield from stablecoins. Providing liquidity in lending protocols like Aave and Compound is one of the most popular methods. When you deposit stablecoins into these protocols, they are lent to borrowers, and you earn interest. Annual yields vary between 2% and 8%, depending on market conditions.
How to get started with Defied
With the Defied platform, the process is extremely simplified. Register with an email, purchase stablecoins directly in the app, and choose a vault with a suitable strategy. Your funds will automatically be deposited into curated DeFi protocols, and yield will accrue in real time.