WHY SHOULD YOU SAVE WITH CRYPTO?
The interest rate for traditional bank savings in Vietnam ranges from 4-6% per year, while in the US it is below 4.65%. In contrast, saving stablecoins in the crypto market can yield from 8% and above.
Reasons for higher stablecoin interest rates:
• High borrowing demand when the market grows, leading to increased yield.
• Some stablecoins invest in US Treasury bonds, providing a high base interest rate.
• DeFi technology allows for higher yields, but often comes with risks.
1. SAFE AND SIMPLE OPTIONS
Depositing on major exchanges:
• Deposit USDT/USDC on Binance, OKX to earn interest from lending on the exchange.
• Current average interest rate: 10-15%, but can fluctuate according to the market.
• Example: Using the Simple Earn feature on Binance.
Lending on major lending projects:
Major and reputable DeFi projects like Aave, Compound, Venus provide stable interest rates.
Current interest rate:
• Aave V3: USDT (13.14%), USDC (17.2%).
• Compound: USDT (12.49%), USDC (8.02%).
• Fluid (Instadapp): USDT (22.91%), USDC (20.67%).
Saving with USDS (formerly DAI):
• Base interest rate from the Saving Rate program, related to US Treasury bond investment.
• The regular interest rate is maintained above 5%, can reach 8.7% with FRAX.
Providing liquidity on Uniswap V3:
• Contribute to USDC-USDT pool, current interest rate around 12.28% (Ethereum).
2. UNDERSTANDING DEFI REQUIREMENTS
• Saving with crvUSD from Curve Finance: Mint crvUSD and stake to earn interest. Average interest rate 14.53%.
• Stake USDE on Ethena: Interest rate from delta neutral strategy, currently at 27%. Additional yield from incentive token ENA.
• Buy PT-sUSDE on Pendle: Fixed interest rate sUSDE. Example: Maturity 12/26/2024: 29.12%. Maturity 3/27/2025: 26.61%.
• Hyperliquid's HLP Vault: Market-making with USDC, achieving an interest rate of 63% APR (last month).
• Farm USDT-USDC Pool on FlowX Finance: Interest rates fluctuate from 18.9-20.23%, with additional rewards in FLX and SUI tokens.
Source: MarginATM