APY estimates are approximate and change frequently based on protocol utilization and incentives. Always verify current rates directly on each protocol's website before depositing. DeFi carries smart contract risk — only deposit what you can afford to lose.
TVL data from DeFiLlama. APY data is indicative, sourced from protocol dashboards.
How to Earn Yield on Stablecoins
Stablecoin yield comes from lending your USDC, USDT, or DAI to borrowers through DeFi lending markets like Aave and Compound, or from providing liquidity to stablecoin swap pools like Curve Finance. Because the principal stays pegged to $1, stablecoin yield is often used as a crypto-native alternative to a high-yield savings account — though it carries smart contract risk that traditional finance does not.
Rates fluctuate daily based on utilization: when borrowing demand rises, supply APY rises too. Aave V3 and Morpho typically offer the highest base rates on Ethereum mainnet, while Layer 2 deployments on Arbitrum, Base, and Optimism often carry higher incentives. For a breakdown of each stablecoin's risk profile and backing mechanism, visit the Stablecoins hub. Monitor live peg health with the Depeg Monitor.