DeFi & Yield

What is stablecoin yield and where does it come from?

Stablecoin yield is the return earned on stablecoins, typically generated by lending them to borrowers, supplying them to liquidity pools, or holding them in protocols backed by interest-bearing reserves. The source matters: lending yield comes from borrower demand, pool yield from trading fees, and reserve-backed yield from assets like short-term government instruments. For example, supplying a stablecoin to a lending market pays interest funded by those who borrow it. Because the dollar peg can break and the underlying strategy can fail, a stable price does not mean the yield is without risk.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.