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Pike
@pikefinance
Want to earn passive income with stablecoins? Examples of these are $USDC and $USDT, which are pegged to fiat currencies like USD, offering a safe way to manage risk in crypto. Here's a quick guide on some ways to make your stablecoins work for you. (1/8)๐Ÿงต
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Pike
@pikefinance
2/ First up: Lending platforms. Deposit your stablecoins & earn interest as borrowers repay their loans. Think of it as a crypto savings account! Platforms include Aave & Pike (DeFi), Binance & Coinbase (CeFi).
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@pikefinance
3/ Lending can give you stable returns, around 6% APY, without constant adjustments. A great option for those seeking predictable income with relatively low risk.
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4/ Next, Liquidity Pools. Supply stablecoins to exchanges like Curve or Uniswap & earn a cut of trading fees. Stablecoin pools like $USDC-$USDT have minimal impermanent loss.
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@pikefinance
5/ Consider Staking Stablecoins. Some DeFi protocols let you stake stablecoins to mint synthetic ones for higher rewards. For instance, stake USDC on platforms like Sky (to mint $USDS/ $DAI) or Ethena (to mint $USDe).
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@pikefinance
6/ Lastly, Yield Aggregators. Protocols like Yearn & Beefy automate moving your stablecoins between dApps to maximize returns. However, they do come with multi-layered smart contract risks.
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