#Write2earn
GROWING DEMAND FOR YIELD AMID HIGH CENTRAL BANK RATES ONDO AND ETHENA NOT FAR AWAY
With central bank interest rates remaining high, the demand for yield is increasing. The US Federal Reserve has kept rates at a 23-year high of 5.25% to 5.50%. This has driven investors to risk-free assets like government bonds for returns.
High-Yield Cryptocurrencies
Cryptocurrencies are also offering significant yields. Solana provides a 7% staking yield, while Celestia, Cosmos Hub, and Injective offer yields over 10%. A 10% yield means a $10,000 investment generates $1,000 annually.
Ondo Finance Yields
Ondo Finance is revolutionizing crypto yields with two funds: US Dollar Yield (USDY) and US Treasuries (OUSG), accumulating over $500 million in assets. These funds offer better alternatives than altcoins like Tether, USD Coin, and Dai.
USDY Fund
OUSG Fund
OUSG provides access to short-term US Treasuries, primarily invested in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). It has a minimum mint limit of $100k and a minimum redemption of $50k, with a 0.35% charge starting next year, available to qualified investors only.
Ethena's Riskier Yield Approach
Ethena offers a riskier approach with its USDe stablecoin, yielding 7.4%. USDe has grown into a $3.3 billion juggernaut with over 250k holders, but its methods involve staked asset consensus and complex derivatives trades, making it riskier and subject to potential regulatory challenges.
Conclusion
Investors have various yield options, from stable government bonds to high-yield cryptocurrencies. USDY offers stability and decent returns, while USDe presents higher risks. Investors should consider their risk tolerance and investment goals when choosing between these options.
