Yield Farming on Stablecoins
We’ve talked about what stable coins are previously and their crucial function that is essential to the entire DeFi ecosystem. As promised, we are back to explore what stable coin staking is all about and how you could earn money.
Many people turn to cryptocurrencies as a new means of investment due to the vast opportunities they offer as compared to traditional finance. Using DeFi as a tool, individuals can now not only attempt to beat inflation but also potentially generate passive income. While there are many products that allow investors to earn, in this article, we will be talking about how and why you should consider investing in your stablecoins.
Yield farming on Stablecoins?
Cryptocurrencies are not for the faint heart as they are known for being notoriously volatile, thus, exposing investors to a substantial amount of risk. DeFi products like staking are generally great tools for you to earn passive income, however, the income you potentially earn ultimately depends on the real value of the token.
Therefore, if you prefer something that is generally more stable this might be what you are looking for. Although yield farming on stablecoins typically generates lower APYs, it is still higher than the rate of inflation or other means of investments in traditional finance.
Why are Stablecoin products less risky?
Due to the nature of a stablecoin, it naturally eradicates volatility risks associated with an investment. In the instance where I choose to provide liquidity by locking up my assets, prices could plunge at any time. In some cases, I would even not be able to liquidate it immediately due to lock-up periods or processing times, causing the value of my portfolio to plummet. On the contrary, if the value of your stable coin constantly stays as a dollar, the value of your overall portfolio value would not fluctuate the same way.
What options do you have on CoinWind?
On CoinWind we offer products where you can farm your stablecoins to enjoy high APYs! If you have stablecoins like $USDT, $BUSD, $USDC, etc. What are you waiting for?
Our stablecoin products include, but are not limited to the following:
(Rates are accurate to the time of this writing)
- USDT: APY 5.94%
- BUSD: APY 8.03%
- USDC: APY 5.01%
These products can be found under the farms tab for Single Token Mining. You may also explore other product offerings that allow you to earn high APYs from your stablecoins.
There is a lot of noise in the stablecoin space right now due to the great Luna-Terra crash where $UST was debugged, causing a death spiral. Stablecoins may require some time to regain investors' faith and trust as we move to a potential future where they could be widely adopted. The underlying value of stablecoins has not been detached despite massive FUD from bad actors as it purposefully fills a massive gap in the DeFi space.