pretty much anywhere onchain will give you better yield than a savings account or similar at a bank. the flip side is that there is always smart contract risk as well as private key management to consider.

aave is a good place to start and supports mainnet + most L2s. in current conditions you’ll get ~3-5% variable on USDC. bear market more like 2%.

if you want to move up the risk curve, you can try newer lending/borrowing protocols like moonwell and morpho on /base for ~6-8% on USDC.

if you’re comfortable with the risks of holding a synthetic dollar like USDe, you can also try ethena for ~6-8%. imo there is a bit more systemic risk here but it held up well in recent downturns.

I think the yields are too low for the type of risk people are taking. I believe that one of the reasons for this is the general stickyness of capital in the ecosystem. its quite difficult to onboard and offboard large amounts.

you can purchase 3 month bonds for yields of 4%+ (risk free rate) while aave only gives you 3-4% approx for stablecoin yields.