Yield-bearing stablecoins allow users to maximize the value of their stablecoin holdings by generating returns through DeFi activities, derivative strategies, or real-world asset (RWA) investments. Currently comprising 6% of the $240B stablecoin market, these assets could grow to 50% as demand increases, according to JPMorgan.
1. Ethena Labs (USDe / sUSDe)
- Mechanism: Delta-neutral hedging with stETH collateral
- Yield Sources: stETH rewards (2.76% APY) + funding rate arbitrage
- sUSDe APY: 5% for staked USDe
2. Spark Protocol (sDAI)
- Backing: DAI in MakerDAO's DSR
- Current APY: 3.25%
3. Ondo Finance (USDY)
- Collateral: USDC invested in T-bills
- Price-Appreciation Model: Current yield = 4.25% APY
4. BlackRock (BUIDL)
- Structure: Tokenized money market fund
- Yield Distribution: Monthly interest payments
5. Figure Markets (YLDS)
- Regulation: SEC-registered security
- APY: 3.79% with daily accrual
6. Sky Protocol (USDS / sUSDS)
- Base Asset: Renamed DAI
- sUSDS APY: 4.5%
7. Usual (USD0)
- RWA-Backed: T-bills
- USD0++ Incentives: 13% APY in USUAL tokens
8. Mountain Protocol (USDM)
- Target Users: Non-US residents
- Auto-Rebasing: 3.8% APY
9. Origin Protocol (OUSD)
- Yield Strategy: DeFi lending pools
- Current APY: 3.67%
10. Prisma Finance (mkUSD)
- LSD-Backed: Yield from staking rewards
- Variable APY: 2.5%-7%
11. Noble (USDN)
- Collateral: Short-term Treasuries
- APY: 4.2%
12. Frax Finance (sfrxUSD)
- Dynamic Yield: Algorithmic allocation to highest-yield sources
- APY: Varies with market conditions
13. Level (lvlUSD)
- DeFi Integration: Aave/Morpho strategies
- APY: 9.28%
14. Davos (DUSD)
- Cross-Chain: Supports multiple collateral types
- Yield Range: 7-9%
15. Reserve (USD3)
- Lending Protocol: Spark/Compound integration
- APY: ~5%
16. Angle (USDA/stUSD)
- Multi-Strategy: DeFi + RWAs
- stUSD APY: 6.38%
17. Paxos (USDL)
- Regulated: Daily yield distribution
- APY: ~5%
18. YieldFi (yUSD)
- High-Yield: Delta-neutral strategies
- APY: 11.34%
19. OpenEden (USDO)
- Backing: Tokenized T-bills
- Rebasing: Daily yield distribution
20. Elixir (deUSD/sdeUSD)
- Dual Yield: T-bills + protocol fees
- sdeUSD APY: 4.39%
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FAQ Section
Q: Are yield-bearing stablecoins safe?
A: While generally lower-risk than speculative crypto assets, they carry protocol-specific risks. Always audit the smart contracts and issuer credibility.
Q: How is yield paid out?
A: Methods vary - some use price appreciation (USDY), others rebase balances (USDM), while many distribute via secondary tokens (sUSDe).
Q: What's the highest APY available?
A: Currently, YieldFi's yUSD offers 11.34%, though higher yields often correlate with increased risk.
Q: Can US users access all these?
A: No - products like USDM and YLDS have geographic restrictions due to regulatory compliance.