Great places to earn stablecoins with staking

The days of staking stablecoins are still pretty new and uncertain. As a result, there are some challenges for earning stablecoins with staking as some (such as $USDT) may not be able to be staked on any exchange at the moment.

While this may not be the best time to stake stablecoins, there are still some options available. We’ll take a look at these options and how they can help you earn stablecoins while avoiding the risk of volatility.

Criteria

• No algorithm-backed stablecoins: following Terra’s death spiral, it will be a while before trusting anything that is algorithmically linked again.

• No lock-in periods: if you’re wanting to earn an annual percentage yield of 20% or more, there are alternative projects where you may earn much more by locking in money for various time periods.

• Native assets: Because payouts in altcoins are too volatile, especially during weak markets, the protocol pays in the native asset stablecoins, not in altcoins.

Beefy.finance – Up to 12% APY

Beefy.finance calls itself a “Multichain Yield Optimizer,” and it makes it easy to use liquidity pools for more than 15 different blockchains.

Like their USDC/BUSD/USDT vault on Fuse, Beefy.finance has liquidity funds that are making great profits.

The best thing about Beefy.finance is that it can instantly convert any LP to its own LP token. In other words, Beefy.finance automatically reinvests any benefits you get from the LP into the same LP pool. 

Beefy.finance generates revenue by deducting a “performance fee” from investment returns.

It is important to examine past return rates to monitor volatility. Some funds may seem to be excellent, yet they may be enjoying a short surge in activity. The LTV will show how stable the rates of return are. A higher LTV means that the rates of return are more stable.

Pro: The “Zap” function makes getting into and out of each fund easier and faster.
Con: APYs above 10% may fall to 1.38% overnight.

Overnight.fi – Up to 12% APY

Overnight.fi is a stablecoin system that makes use of other stablecoin protocols, including USDC, USDT, and DAI. Their main chains are hosted on Polygon and Binance, but they have just added Avalanche and Optimism. Overnight.fi is quite transparent, and you could theoretically employ the same strategies they do.

All of their smart contract addresses are exposed to the public via their white paper, and they have also been audited by Hacken this year. Overnight.fi works by trading $USDC for $USD+, which automatically resets your daily returns as long as you keep your $USD+. The $USDC/USD+ pair may be traded directly inside the DAPP in both directions.

The average annual percentage yield (APY) on USD+ accounts can change a lot, from 4% to 11% on Polygon, 5% to 33% on BSC, 5% to 14% on Avalanche, and 2% to 36% on Optimism. Because these ranges change, it is important to look at the average annual percentage yield (APY) in US dollars that is given for each chain.

Pro: There are no wasted gas fees.
Con: The rates are variable and not fixed.

Ref Finance – Up to 13.73% APY

Ref.Finance is by far the most popular DeFi protocol on the Near blockchain, and its most popular farm is the USN-USDT liquidity fund. By staking $USN, the native stablecoin of the Near network, with $USDT, you can earn a good APR in $USN and a small amount (0.18% APY) on the platform’s $REF token.

When $USN was first introduced, only a portion of it was backed by $USDT. The rest was backed by $NEAR. However, in July, with the introduction of $USN v2.0, they made a move to completely back $USN with $USDT.

$NEAR has a lot of money from venture capital and has done well even during the down market. It has also undergone two audits, the most recent being in June 2022.

Getting $USN is hard if you don’t know how the Near network works. You need to bridge your $NEAR and build a Near portfolio. In addition, it is uncertain how long these high APRs will last since they were intended to expire at the end of August.

Pro: low fees, good decentralization.
Con: insufficient liquidity on some swap’s.

Midas Investments –  Up to 14.7% APY

Midas.Investments have been around for more than four years and have survived several market downturns, but are the only platform discussed in this article that is not a custody-free platform.

They are the only ones that provide 11.6% APY in stablecoins (if you choose to be paid in native stablecoins) or 14.7% APY in their native $MIDAS token, with no lock-in.

Pro: has the longest history of positive outcomes.
Con: Since it is a CeFi platform, “it’s not your crypto if it’s not your keys.”

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