Stablecoin Yield Strategy Analysis: Diversified Choices and Risk Warnings

In the current economic environment, the attractiveness of dollar assets is rising. Many top DeFi projects are also actively utilizing idle dollar assets to generate returns. This article will explore the latest developments in several stablecoin yield strategies.

Convex: USDD+3Crv Strategy

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 rate exceeding 300%. The amount of USDC collateral reaches 990 million, far exceeding the issuance of USDD, which reduces the risk factor.

A certain trading platform recently delisted HUSD while listing multiple USDD trading pairs and waiving transaction fees. These measures are beneficial for the development of USDD.

On the Convex platform, the annualized yield of the USDD+3Crv pool is 19.66% APR(, and the APR for USDD+FRAXBP is 21.18%. The former includes four types of stablecoins, while the latter includes three. The steps are to first deposit on Curve, and then stake the LP tokens on Convex.

In a certain public chain ecosystem, the application of USDD is more widespread. For example, on a certain platform, the annualized yield of the USDD-USDT trading pair can reach up to 41.9% (requiring the locking and staking of platform tokens), while the annualized yield for USDD deposits in a certain lending platform is 9.52%.

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-f908085e59600caf56736109ea2887bc.webp(

Canto: USDT+NOTE Strategy

Canto is an EVM-compatible DeFi public chain within the Cosmos ecosystem, featuring functions such as DEX, lending, and the stablecoin NOTE. Currently, the total locked value of Canto is approximately $100 million.

Canto's lending platform shows that the APR for NOTE/USDT LP is 32.14%, and the APR for NOTE/USDC LP is 29.47%. NOTE is a stablecoin minted through over-collateralization in Canto, and liquidation does not occur when the collateral is USDC and USDT.

Operation suggestion: You can use part of your USDT as collateral to mint NOTE, then use NOTE and the remaining USDT to provide liquidity, and finally 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 yield strategy update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-8cab21490ff79e0a9672744a359692e3.webp(

Velodrome: sUSD+LUSD Strategy

Velodrome is a decentralized exchange on Optimism, derived from Andre Cronje's Solidly developed on Fantom. Currently, Velodrome's TVL is $82 million, surpassing the scale of some well-known DEXs on Optimism.

sUSD and LUSD are two relatively safe stablecoins in DeFi projects. 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-3188761d6843cd48b2defbb113a27a1c.webp(

Helio: HAY+BUSD Strategy

Helio Protocol is a liquidity staking and lending protocol on a certain public chain. Users can over-collateralize to borrow Helio's decentralized stablecoin HAY, and the collateralized tokens will be used for liquidity staking.

A large DEX has added a dedicated StableSwap exchange entry for HAY and BUSD, indicating that HAY has certain background support. Currently, Helio's TVL is $92 million.

Operation suggestion: Provide liquidity for the HAY/BUSD stablecoin trading pair on a certain DEX, and then stake the LP tokens in Helio, where the currently displayed APR is 19.77%.

![Stablecoin Yield Strategy Update: USDD, Canto, Velodrome, Helio, Wombat])https://img-cdn.gateio.im/webp-social/moments-4c190981d5e6139f91f106bc7a27c450.webp(

Wombat Exchange Ecosystem: Multiple Stablecoin Strategies

Wombat Exchange is a stablecoin exchange DEX on a certain public chain, featuring low slippage and shared liquidity. Its investors include several well-known institutions and are closely related to a large exchange.

Currently, the median APR for USDC, USDT, DAI, and BUSD in Wombat's Main Pool is 11.44%, 11.14%, 10.85%, and 7.57%, respectively (including locking and holding platform coins for acceleration).

Applications similar to Convex have also emerged around Wombat, such as Wombex Finance and Magpie, where ordinary users may achieve higher returns through these applications.

Risk Warning

The risks in the cryptocurrency market are higher than those in traditional financial markets, and security incidents are frequent. Investors should diversify their risks, thoroughly understand the specific risk points of each project, and make prudent decisions. This article is for reference only and does not constitute investment advice.