How much interest can you earn with DAI?
Asked 2 years ago
Hi everyone, do you consider the DAI stablecoin to be a good investment?
Reid Hart
Monday, June 06, 2022
There are several ways of earning with your DAI stablecoins, and these ways can give you a guaranteed APY starting from 6%. The 6% APY rate is offered by the original DAI DAapp called Oasis through the save section of the app. It may be a great option for those who truly mint DAI from the protocol by depositing Eth or other tokens as collateral.
If your goal is to earn the highest yield possible on your DAI, however, you may want to consider other DeFi protocols. There are lots of liquidity pools but you must keep in mind that the APY is only truly stable if you are adding liquidity of DAI and another stablecoin such as USDT, USDC, or BUSD to a liquidity pool.
It is not uncommon to see pools paying as high as 45% APY these days but the amount you you can possibly earn from investing in these pools will start to go down as more people add liquidity to the pool. So when a pool says 45% APY for example, it you may end up getting around 20-30% in the end. Just keep your eye on DeFi liquidity pools, and make sure to invest in projects that have been in the space for a long time or have some other sort of credibility.
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