Hedging and Earning? Organizing 20 Yield-Generating Stablecoins to Create a Low-Volatility Cash Flow Strategy

Despite Bitcoin currently fluctuating above $95,000, investors remain concerned about what shocking news Trump might throw out next, leading to a market crash. This article consolidates 20 types of yield-generating stablecoins, providing low-risk returns. Originating from an article by Mars_DeFi, organized, translated, and written by PANews. (Background: PayPal offers interest: PYUSD American users can enjoy an annualized return of 3.7%, how far is it from the leading stablecoin USDT?) (Background Supplement: Citibank's stablecoin research report) Digital dollars, CryptoPunks to government banks) Recent market volatility and high uncertainty mean that users looking for safe profits can consider maximizing the value of stablecoins through yield-generating stablecoins. Yield-generating stablecoins refer to assets that generate returns through DeFi activities, derivative strategies, or RWA investments. Currently, these stablecoins account for 6% of the $240 billion market value of stablecoins. With increasing demand, JPMorgan believes that reaching 50% is not out of reach. Yield stablecoins are minted by depositing collateral into protocols. The deposited funds are used for investment in yield strategies, and the returns are shared among holders. This is similar to a traditional bank lending out deposited funds and sharing interest with savers, except that the interest from yield stablecoins is higher. This article aims to list 20 types of yield-generating stablecoins. 1. Ethena Labs (USDe / sUSDe) Ethena maintains the value of its stablecoin and generates returns through delta-neutral hedging. USDe is minted by depositing staked ETH (stETH) into the Ethena protocol. The ETH position is then hedged through shorting. Besides the returns from stETH (currently an annual interest rate of 2.76%), the positive funding rate from shorting will also generate returns, which Ethena distributes to users who stake USDe for sUSDe (annual interest rate of 5%). 2. Spark (sDAI) sDAI is generated by depositing DAI into Maker's DAI Savings Rate (DSR) contract. The current annualized return is 3.25%. Returns are accumulated through the interest of DSR (interest rate determined by MakerDAO). sDAI can also be traded or used in DeFi like other stablecoins. 3. Ondo Finance (USDY) Ondo issues USDY backed by USDC deposits. The deposited assets are used to purchase low-risk assets such as treasury bills (approximately 4-5% annual interest rate), with most of the interest shared among USDY holders. The yield of USDY is set once a month and remains stable throughout the month. This month's annualized yield is 4.25%. Note: The yield of USDY is reflected in the token price rather than quantity. This is why USDY is always above $1. 4. BlackRock (BUIDL) BUIDL stablecoin represents ownership of a tokenized money market fund (MMF) managed by BlackRock. The fund invests in cash and other instruments, such as short-term treasury bills and repurchase agreements, and allocates interest to BUIDL holders. The fund's yield is calculated daily but distributed to BUIDL holders monthly. 5. Figure Markets (YLDS) YLDS is the first yield-generating stablecoin registered as a public security with the SEC in the United States. Figure Markets gains returns by investing in the same securities held by high-quality money market funds (MMF), which are riskier than tokenized government-backed money market funds (MMF). YLDS offers an annual interest rate of 3.79%. Interest accumulates daily and is paid monthly in either USD or YLDS tokens. 6. Sky (USDS / sUSDS) USDS is a renamed version of DAI, minted by depositing eligible assets through the Sky Protocol. It can be used in DeFi and also earns returns through the Sky Savings Rate (SSR) contract from the Sky Protocol. sUSDS is issued based on USDS deposits, with an annual interest rate of 4.5%. 7. Usual (USD0) USD0 is fully backed by real-world assets (RWAs) such as treasury bills and is minted by depositing USDC or eligible RWAs as collateral on the Usual platform. Users can also stake USD0 on Curve to earn USD0++ (annual interest rate of 0.08%). USD0++ can be used in DeFi, and returns are distributed in USUAL tokens (annual interest rate of 13%). Note: To earn USD0++ returns, a 4-year staking period is required. 8. Mountain Protocol (USDM) Mountain Protocol generates returns by investing in short-term U.S. treasuries, but USDM is specifically aimed at non-U.S. users. The returns from these U.S. treasuries are allocated to USDM holders through a daily adjustment system, so the balances automatically reflect the earned returns. USDM currently offers an annualized return rate of 3.8%. 9. Origin Protocol (OUSD) OUSD is minted by depositing stablecoins like USDC, USDT, and DAI into the Origin Protocol. Origin deploys the collateral into low-risk DeFi strategies, generating returns through lending, liquidity provision, and trading fees. These returns are distributed to OUSD holders through an automatically adjusted benchmark. OUSD is backed by stablecoins and has an annual interest rate of 3.67%. 10. Prisma Finance (mkUSD) mkUSD is supported by liquidity staking derivatives. Returns are generated through rewards from underlying staked assets (variable annual interest rate of 2.5% - 7%) and are distributed among mkUSD holders. mkUSD can be used for liquidity mining on platforms like Curve and can also be staked in Prisma's stable pool to earn PRISMA and ETH rewards from liquidation. 11. Noble (USDN) USDN is backed by short-term treasury bills. Returns come from the interest of short-term government securities and are distributed to USDN holders (annual interest rate of 4.2%). Users can earn baseline returns by depositing USDN into a flexible vault or by depositing it into the USDN lock-up vault (with a maximum lock-up of 4 months) to earn Noble points. 12. Frax Finance (sfrxUSD) frxUSD is backed by assets from BUIDL under BlackRock, generating returns by leveraging its underlying assets (such as treasury bills) and participating in DeFi. The yield strategy is managed by a benchmark yield strategy (BYS) that dynamically allocates the staked frxUSD to the highest-yield sources...