Stablecoin staking has emerged as a popular strategy for earning passive income. Especially in the situations like this when it’s really hard to predict where will market go next – up or down.
Staking stablecoins, such as USDC, allows you to earn interest on your holdings while mitigating the volatility often associated with other cryptocurrencies. But where to stake USDC or other stablecoins for the best returns?
This guide delves into the world of stablecoin staking, highlighting the best stablecoin staking platforms and strategies. We’ll guide you through the process of staking stablecoins for optimal returns.
From understanding the basics of stake stablecoin strategies to exploring the top platforms for USDC staking, this comprehensive guide is your one-stop resource.
| Topic | Summary |
|---|---|
| 💤 Where can I stake stablecoins and make money while I sleep? | The article provides a unique look at the top stablecoin staking (liquidity mining, yield farming) places. |
| 💹 Stablecoin “staking”, liquidity mining, yield farming | These terms essentially mean earning interest on your stablecoins while doing nothing. |
| 📍 12 ideal locations to stake stablecoins | The article outlines 12 ideal locations to stake stablecoins and gives a thorough explanation of how to lend cryptocurrencies like DAI or USDT while earning interest on the money. |
| 🏦 Where To Stake Stablecoins (USDT, USDC) | You can stake stablecoins like USDC or USDC on both centralized and decentralized platforms. |
| 🔄 Where to stake USDC/USDT on centralized staking platforms | Some of the platforms mentioned are Pemex, YouHodler, KuCoin, ZenGo, Binance, and Crypto.com. |
| 🌐 DeFi platforms for high APYs on stablecoins (USDT, USDC, FRAX, MIM) | Rewards and interest you can earn on DeFi protocols are much higher. Some of the platforms mentioned are Pickle Finance, Beefy Finance, and Sunny. |
What you'll learn 👉
Where To Stake Stablecoins (USDT, USDC)
You can stake stablecoins like USDC or USDC on both centralized and decentralized platforms. This article will show both ways, so let’s dig in.
Where to stake USDC/USDT on centralized staking platforms
Pehmex
One of such features is Phemex Earn which offers by far best APYs among centralized platforms for stablecoin staking. You can earn up to 25% on USDT and up to 18% on USDC on Phemex.
They offer flexibe (lets people earn interest on their cryptos without having to commit to anything for a long time.) and fixed (Users must sign up for this option for a set amount of time before they can cash out their earnings) savings accounts.
YouHodler
YouHolder is mirroring lending and borrowing business model from traditional banks: you can earn interest rate (of up to 12% on certain coins) or borrow money by putting up your crypto holdings as collateral with a LTV of up to 90%.
Yields on stablecoins on YouHodler come up to 8.2% per year.
YouHodler has a couple of unique services like the turbocharger, where you can set in motion a cascade of loans that the app automatically makes for you. You set the initial collateral and number of loans the platform should create: from 3 to 10.
Another one is a MultiHODL, a chain of loans (similar to turbocharger) invested into risky crypto assets that can blow up or break down. You set your conditions for risk (for example, how much can your chosen portfolio drop in price before you stop your losses and close positions).
In case of a crypto bull run, your coins value will multiply and the profit will go directly to your account. In the case of a decline in prices, you will get your initial fiat or crypto deposit back minus the factual loss.
KuCoin
At first (and second and any following) glance, KuCoin appears to be the finest choice for an experienced and active cryptocurrency trader. Users of the exchange have access to hundreds of tokens, can trade futures, use margins, trading bots, staking features and many more. All of this plus low fees make KuCoin one of the best places to do anything crypto (not only staking or trading).
KuCoin supports more than 700 coins, and trading fees start at 0.1%. You will save 20% if you pay using KCS coin, and big-volume dealers will pay even less. The range of trading options available to KuCoin users, such as spot trading, margin trading, P2P trading, and futures trading, are the highlights of what the exchange has to offer. Users can also use the crypto borrowing, lending, and staking services.
As an illustration, KuCoin offers up to 3.12% APY on USDC staking. Not bad, but you can get more on some other places. Read on.
ZenGo
ZenGo is one of the newer cryptocurrency savings accounts on this list. You can earn up to 8% per month, if you deposit less than $100k. If you deposit more than that, the rate is slashed to 4%.
If you want to borrow crypto, you can use the platform to lend to others.
They offer both fiat and crypto loans, with rates starting at 4%. You can set your loan terms, such as how long you want to borrow. Loans are paid out daily, and there is no lockup period.
You can also stake some coins like Tezos on ZenGo, earning 2% monthly.
Binance
Binance is the most popular cryptocurrency exchange which is founded by Changpheng Zhao, a well-known blockchain industry expert, and expert in setting up trading systems.
The platform has been around for quite some time now, and it’s one of the most trusted exchanges out there. It offers a wide range of cryptocurrencies to trade on its platform and also allows users to buy crypto with fiat currency.
Besides being a leading exchange, Binance is also a very big market maker, which means that they are buying and selling cryptocurrencies in the markets.
On Binance, lending a stablecoin like USDT is quite flexible, and you have two choices. The first is called “Flexible Savings,” and it allows you to transfer USDT as well as redeem coins whenever you need them (at an interest rate of roughly 5.77%).
In addition, you can transfer stablecoins and lock them for 7, 14, 30, or 90 days using “Locked savings.” Additionally, depending on the time frame, you will receive rewards with interest that ranges from 6 to 7% on average.
Finally, trading on Binance may be done for nearly no cost (0.075%) if you sign up through this link. You will receive a further 10% lifelong discount as a result.
Crypto.com
A well-known cryptocurrency exchange that accepts a variety of crypto assets is called Crypto.com. The platform also gives you the chance to use your stablecoins to generate passive revenue. The stablecoin yield, however, depends on how much of CRO tokens you lock to stake on Crypto.com and the amount of stablecoins you deposit. Maximum APY you can get is 8.5%.
But for most users the APY will hover around 5%.
You must select the locked deposits and have as much as possible of CRO tokens staked on their platform in order to receive the best stablecoin interest rate. The highest APY for interest rates can reach 8.5%.
DeFi platforms for high APYs on stablecoins (USDT, USDC, FRAX, MIM)
Rewards and interest you can earn on DeFi protocols are much higher. Many of these centralized services are actually putting your deposited coins into these protocols and shave off majority of APYs for themselves while paying you 3-5x lower rates then what they get.
However, those with higher risk appetites will definitely enjoy the high APYs (and hope the protocol they chose won’t suffer some of the scenarios we listed above).
Pickle Finance (30%) – on Polygon
Built on the Ethereum network, Pickle Finance is a multi-layered, multi-chain yield aggregator. Yield aggregators are DeFi platforms that assist farmers with raising capital and maximizing profits via the use of various DeFi protocols and strategies.
You can have up to 30% APY for stablecoins on the Polygon network on this platform.
Beefy Finance (29.76%) – on Fantom
A multi-chain decentralized yield optimization platform is called Beefy Finance. Compound interest can be earned on users’ cryptocurrency holdings. Simply speaking, Beefy Finance functions as an autocompounder. It reinvests your yield earned in order to boost your gains.
You can have up to 29.76% APY for stablecoins on the Fantom network on this platform.
Sunny (27%) – on Solana
On the Solana blockchain, Sunny is a DeFi yield aggregator that enables third parties to create protocols and apps on top of the system. It facilitates compounding tactics for increased revenues and streamlines the management of all yield farming positions. Composability is Sunny’s main strength.
You can have up to 27% APY for stablecoins on the Solana network on this platform.
FAQs
