Crypto staking has become an integral part of the crypto ecosystem. It is also a major way to earn passive income on your crypto assets.
One of the best assets to take are stablecoins. This is because stablecoins are by design less volatile than other cryptocurrencies.
Therefore even as you stake them, you have no fear that the price will change and you may be at a loss at the end of the staking period.
There are many options when it comes to staking stablecoins. You could use centralized platforms or decentralized ones depending on what you’re looking for.
There are excellent decentralized staking platforms that you can use though, and you can use them easily to stake your stablecoins and start earning rewards. Here is a list of the best five you can use for this purpose.
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Curve is an automated market maker (AMM) designed specifically for stablecoins, and this makes it an ideal destination for staking stablecoins.
It is also a leading exchange for trading stablecoins with minimum slippage, which is a major problem in decentralized finance. As an AMM, you can contribute your stablecoin to the platform in the form of staking to one or more liquidity pools known as “curve pools”.
The pools charge a percentage fee on every trade that uses its liquidity, and half of the fees is shared among the liquidity providers. Stakers can also receive rewards in the form of CRV tokens, and sometimes additional rewards in the form of an associated project token — such as Synthetix (SNX) for the sUSD pool.
Pancakeswap is another leading AMM, and the top one by trading volume on BNB Chain. You can stake your stablecoins to the liquidity pools and earn rewards from the transaction fees shared.
The decentralized exchange is primarily for trading volatile assets, but also supports a large number of stablecoin-specific liquidity pools. These include USDC-USDT, USDT-BUSD, DAI-BUSD and TUSD-BUSD.
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While the yields vary from one pool to another, you can earn from 1-3% APY and as high as 10% APY during highly bullish periods. The yields can also be from additional supplements in the form of CAKE tokens.
Yearn Finance doesn’t directly facilitate stablecoin staking, but instead allows users to optimize the yields they receive from other platforms. By using economies of scale, it bundles user funds together to automatically boost their yields by minimizing transaction fees via an automated process that is had to use manually.
Users only need to deposit their assets to one or more Yearn Finance vaults and the platform will use the assets while executing strategies associated with the pool.
You can use both volatile assets and stablecoins on this platform, although stablecoins produce lower yields, ranging from 0.01% to 2% APY during a bear market, and roughly 1-10% during a bull market.
Compound is an open lending protocol that allows users to deposit assets to one or more liquidity pools, which are then used to fund overcollateralized loans.
Liquidity providers are then rewarded based on their contribution to the poos with the interest that borrowers pay on loans.
A wide variety of stablecoins are supported, including DAI, TrueUSD (TUSD), USDC Coin (USDC) and Tether (USDT), each of which provides a different yield depending on the amount of supply available and borrow-side demand.
Rewards also come from the Compound (COMP) token emission which serves as additional returns.
Uniswap is considered the leading decentralized exchange, and for good reason. However, it is also a great place to stake stablecoins. Being the most popular AMM on Ethereum blockchain, it is also well-known for its liquidity pools.
The platform allows the creation of two-side liquidity pools, and you can contribute liquidity for whichever assets you choose and earn a share of trading fees. Uniswap shares a percentage of the fees with liquidity providers, up to 100%.
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