Can you make money from stable coins?

Asked 2 years ago

I need to know that my investments will convert to money that I can actually use. Can you make money from stable coins?

Abraham Camacho

Sunday, July 31, 2022

Yes, you can definitely make money from stable coins. As you probably already know, stablecoins are cryptocurrencies that are pegged to the value of a real asset (like the US Dollar, the Euro, or Gold). There are 3 main ways you can earn with stablecoins, including:

  • Lending - you can lend your stablecoins on a weekly basis, and the user will then give them back with interest. This is regarded as the most profitable way to make money from stablecoins, as long as you're sure that you're lending them at a reputable place where you can get them back. The APY really varies with lending - it can be as low as 2%, or as high as 40%.
  • Staking - staking is quite similar to lending, but you're putting the stablecoins on an online platform (usually a CEX). The returns here are lower than the ones you'd get from lending, but they're much more stable (usually around 10%).
  • Yield farming - you can put two pairs of stablecoins in a yield farm at a decentralized exchange and then earn interest whenever someone swaps one coin for the other. The returns here can really vary - sometimes they're as low as 2% yearly, while other times they're as high as 80%.




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