Stablecoin Interest Rates (Nov 2023)

After tracking and plotting historical rates, we find that rates have steadily risen for all stablecoins. This past month, Dai had the highest mean and median APY at 8.61% and 6.51% respectively. USDC.e follows closely at a median APY of 6.17%. Although Tether failed to capture higher rates, its minimum APY holds steady and remains competitive at 2.55%, only 33 basis points from the bunch.

Should prices increase for digital assets, rates may continue to rise as investors leverage their positions, suggesting users remain patient before entering a fixed position. Alternatively, users may consider locking in rates now as they are higher than the DSR on the main net. More conservative investors may look towards the historical stability of Tether, as shown through the min rate data.