📖 Stablecoin deposits: comparing CeFi yields and DeFi risks
Where to keep stablecoins profitably and earn passive income with minimal risk. This article reviews popular centralized platforms (CeFi—exchanges and crypto‑deposit services) and decentralized protocols (DeFi), compares their yields, and assesses risks. We’ll also look at options on TRON (USDT TRC‑20), since Tron is widely used for USDT. At the end you’ll find takeaways and recommendations: where it’s better to hold USDT, where to place DAI, and what’s safer for USDC.
Note: the term “staking stablecoins” is used loosely here: in practice, yield comes from lending or deposit‑style products.
Tip: start with a small amount on trusted platforms and test withdrawals/unlocks before committing larger capital.
CeFi platforms: yields on stablecoin crypto deposits
Centralized platforms (CeFi) are exchanges and fintech services that offer crypto deposits and Earn products. Users entrust their stablecoins, and the platform pays interest by lending those funds to traders, using them in margin markets, or other operations.In short: CeFi works like a classic deposit: you place USDT, USDC, or DAI, the exchange reallocates liquidity, and you receive a fixed or floating return.
Tip: compare not only headline rates, but also conditions (caps, lockup, currency). Below is a CeFi overview for USDT, USDC, and DAI.
⚫ OKX Earn
OKX exchange offers similar products. A flexible deposit on the first 1,000 USDT pays a promotional 10% APY (for 180 days); above that—base ~1%. In normal periods, USDT/USDC yields fluctuate around 4–8%, but when borrowing demand spikes, rates can jump temporarily—for example, in December 2024 USDT peaked at 27.7% and USDC at 20.4%. These spikes are short‑lived but show the potential.TL;DR: typical OKX yield is up to ~5–10% APY on stablecoins.
🟣 Bybit Earn
Bybit offers flexible savings and promo products. USDT and USDC rates are usually ~3–6% APY, sometimes higher during promotions for new users. For example, Bybit ran promos with boosted \~5% on USDT. Typically, the first tranche (capped amount) earns the highest rate, then it tapers. DAI isn’t always available on Bybit; the focus is USDT/USDC.TL;DR: average Bybit rates ~3–6% APY; promos can reach ~5%+ for new users.
🟦 Kraken Earn
Kraken, known for reliability, also offers Earn for stables. Kraken provides a flexible deposit around ~4.25% APR and a 30‑day fixed term at ~5.5% APR for USDT and USDC. Notably, Kraken pays interest even on fiat USD balances (for non‑US residents)—up to \~6.5% on 30‑day terms. DAI isn’t supported on Kraken; the platform focuses on USDC/USDT. 5.5% annually is a decent rate for a highly regulated exchange.TL;DR: Kraken is the conservative pick: 4–6% on stables, ~5.5% on fixed products.
🟩 KuCoin Earn
KuCoin offers two options. First, Savings—simple deposits with ~3–6% APY. Second, Crypto Lending—P2P lending where users lend USDT/USDC for margin borrowing. On KuCoin Lending, rates can be attractive but volatile: typically 5–15% APY, and when borrowers face a shortage of stables, they can spike towards 20%. It’s common to see 16–20% APY on USDT, and occasionally rates touched 40% APY (briefly). Naturally, such figures reflect elevated demand and don’t last. DAI is rare on KuCoin; the priority is USDT/USDC.TL;DR: KuCoin Savings ~3–6% APY; P2P lending can deliver 10–20%+ but is volatile and demand‑driven.
🟠 BingX Earn
BingX offers flexible deposits for USDT and USDC with base yields around ~3–6% APY. There are frequent promo pools: new users or the first N USDT can earn boosted rates up to 10–15% APY. The exchange emphasizes copy trading, which keeps demand for stablecoin liquidity high—supporting above‑average yields. DAI is rare; the focus is USDT/USDC.TL;DR: BingX offers ~3–6% APY on stables; promo products can reach 10–15% APY.
🔵 Bitget Earn
Bitget uses a structure similar to OKX and Bybit: flexible savings and fixed products. Typical USDT/USDC rates are ~4–8% APY, higher during promotions. Occasionally, “Super Earn” campaigns push yields to 10–20% APY on a limited amount. DAI isn’t always supported; emphasis is on USDT.TL;DR: Bitget offers ~4–8% APY on stables; promos can lift yields to 10–20% APY.
Other CeFi. Beyond the above, there are several platforms:
- 🌐 Crypto.com
- 💎 Nexo — previously up to 12% APY on stablecoins (bonuses for NEXO; now reduced).
- 🔗 YouHodler — around 8% annually.
- 🏦 Ledn and others.
Key points:
- 🔸 Yield is often tied to loyalty/platform tokens.
- 🔸 Deposit caps are common.
- 🔸 Terms are frequently fixed.
CeFi summary
Yields on centralized platforms are moderate, typically 4–8% annually. You can sometimes reach double‑digit APYs—especially on USDT—but those figures usually depend on promos or higher risk. CeFi suits beginners thanks to simplicity (a “deposit on/off” UI), but it requires trust in the company.Bottom line: budget for 4–8% as the baseline; double‑digit APYs do occur, but usually with conditions and elevated risk. Diversify platforms and don’t keep all capital in one place.
DeFi protocols: yield strategies for stablecoins
Decentralized finance (DeFi) lets you earn on stablecoins without intermediaries—via smart contracts. The learning curve is steeper, but efficient liquidity allocation often delivers higher yields than CeFi. Below are core strategies for USDT, USDC, and DAI.Lending protocols (Aave, Compound)
How it works: you deposit stablecoins into a liquidity pool and borrowers take over‑collateralized loans. Supplier rates float based on demand/utilization.- 📈 Typical yield: about 3–6% APY on major stables.
- 🎯 Upside: up to 8–10% APY at high utilization or with protocol token rewards.
- 🟡 DAI nuance: rates can be slightly higher due to competition with Maker’s DAI Savings Rate (DSR); protocols adjust yields as flows change.
- 🌉 L2s and alternative L1s: new networks sometimes add incentives for higher yields.
Risks and nuances
— Floating rates: yields are unstable and demand‑driven.— Smart‑contract and protocol risks (even for “battle‑tested” Aave/Compound).
— Liquidation risk if you borrow/use leverage.
— Token incentives and high APR/APY are often temporary.
Bottom line: lending on Aave/Compound is a baseline, relatively conservative DeFi strategy; typical yield is 3–6% APY, with 8–10% APY possible at high utilization or with incentives.
Curve liquidity pools (plus Convex)
Curve Finance specializes in stablecoin pools (e.g., the well‑known 3pool: USDT+USDC+DAI). Liquidity providers earn swap fees and CRV rewards. Using Convex can further boost returns.- 📉 Base yield: fee revenue is usually around ~1% annually.
- 📈 Via Convex: commonly 5–10% APY on popular stable pools.
- 📊 Average (2024–2025): major Curve pools tend to deliver roughly 6–15% annually.
- 💡 Example: the MIM+3CRV pool on Convex in 2025 paid about ~14% APY.
Risks and nuances
— Very high APYs (30–50%+) usually carry risk: low liquidity, new algorithmic stables, or temporary incentives.— The CRV+Convex mechanics are complex and require understanding boosts/tokenomics.
— If trading volume falls, yields can drop quickly.
Bottom line: a conservative approach is providing liquidity to the largest 3pool (DAI/USDC/USDT) and staking via Convex. This offers relatively stable ~3–8% annually without excessive risk.
Yearn Finance (auto‑yield strategies)
Yearn Finance is an aggregator that automatically allocates stablecoins across DeFi strategies to maximize returns. You deposit, say, DAI into a yVault, and the smart contract allocates between Curve+Convex, lending, and other protocols.- 📈 Historical yields: around 5–10% APY on stablecoins, occasionally higher when new schemes emerge.
- ⚡ Spikes: yields sometimes jump to double digits, but that’s rare and short‑lived.
- 💰 Note: Yearn charges a performance fee, which lowers net APY.
- 🔄 Pros: automation, auto‑compounding, and gas savings.
Risks and nuances
— Yearn isn’t immune to exploits: in 2021 a yDAI Vault exploit caused ~$11M losses (covered by the team).— In 2023 a legacy v1 vault was hit again; losses were covered, reminding users of risks.
— Even automated strategies require monitoring and prudent allocation.
Bottom line: Yearn Finance automates yield strategies and often slightly outperforms the Maker DSR, but you still face smart‑contract risks and fees.
Lido Finance
Lido is a liquid‑staking protocol for ETH, MATIC, SOL and others. For example, staking ETH via Lido yields roughly ~4% annually in stETH. Lido doesn’t offer deposit products for stablecoins, but its tokens are widely used in DeFi—for instance, in stETH‑ETH pools or as collateral for borrowing.Bottom line: Lido is for liquid staking, not for USDT/USDC/DAI deposits; it’s included here to complete the DeFi landscape.
Real‑world asset (RWA) protocols
RWA protocols are a 2024–2025 trend: they source yield from treasuries and credit. Think of them like on‑chain investment funds: you deposit USDC/USDT and the protocol buys bonds or extends off‑chain loans.- 💼 Ondo Finance — tokenized treasuries, about ~4.5% annually.
- 📊 Maple Finance — crypto credit, ~7–9% APY.
- 📑 OpenEden — T‑bill tokens, roughly ~4% APY.
Risks and nuances
— Yield is capped by Fed rates: usually ~4–5% annually, rarely higher.— KYC and regulatory compliance required.
— Risks are closer to traditional finance, with less volatility than many DeFi strategies.
Bottom line: RWA protocols are a way to place USDC/DAI at about ~4–5% annually, sacrificing upside for stability and regulated risk.
Bottom line: DeFi yields on stablecoins are often higher than CeFi—typically 6–15% APY versus 4–8% annually on centralized platforms. The tradeoff is operational complexity (you need to understand wallets, pools, farming) and smart‑contract risk.
Experienced users can mix strategies—for example, lock a portion at \~5% APY and farm liquidity with another portion at 10–20% APY. Beginners should start with simpler protocols like Aave or Compound and small amounts, then scale as their DeFi literacy improves.
Rates: USDT · USDC · DAI
Comparison table of USDT and USDC yields across popular CeFi and DeFi platforms (indicative APY for 2024–2025; figures may change over time).
| Platform / Protocol | USDT APY | USDC APY |
|---|---|---|
| 🌐 CeFi | ||
| Binance Earn | ~7–8% (up to 10%) | ~5% |
| OKX Earn | 1–10% (peaks ~27%) | 1–8% (peaks ~20%) |
| Bybit Earn | ~5% (up to 10%) | ~5% |
| Kraken | 4.25–5.5% | 4.25–5.5% |
| KuCoin Lending | ~5–15% | ~5–10% |
| 🔗 DeFi | ||
| Aave / Compound | ~3–6% (up to 8–10%) | ~3–5% (up to 8%) |
| Curve + Convex | ~5–10% | ~5–10% |
| Yearn Vaults | ~4–8% | ~4–8% |
| MakerDAO DSR | – | ~3.3% (up to 8%) |
| 🏦 RWA | ||
| Ondo Finance | ~4–5% | ~4–5% |
| Maple Finance | ~7–9% | ~7–9% |
| OpenEden | ~4% | ~4% |
Notes:
- APY = annual percentage yield.
- CeFi: headline rates shown without VIP tiers or platform‑token discounts.
- DeFi: ranges shown because rates float.
- MakerDAO DSR: DAI rate is set by MKR holders; it reached ~8% in 2023 and is ~3–5% now.
- Tron/USDT: not split out here: on CeFi/TRON it’s comparable to regular USDT; in DeFi (e.g., JustLend) it differs.
As you can see, the best crypto deposits in 2025 offer roughly 8–12% annually on stablecoins (and more in isolated cases). DeFi strategies often beat CeFi on yield—just remember the risks discussed below.
🔐 Hardware Wallets 2025
Want to keep your lending income as safe as possible?
See which hardware wallets to choose and how to set them up correctly.
Risk assessment: platform resilience, hacks, regulation, and dollar peg
When choosing where to store and “stake” stablecoins, safety matters as much as yield. Here are the major risks and how to mitigate them.Platform reliability and resilience (CeFi)
Trusting a centralized company exposes you to its solvency or misuse of funds. History offers examples: the collapses of Celsius and FTX in 2022 showed that even giants can go bankrupt and freeze client assets. Some platforms faced legal issues: for instance, Nexo was fined by the US SEC and appeared in a criminal case in Bulgaria. Favor exchanges with transparent reserve policies (e.g., Kraken and Binance publish Proof‑of‑Reserves) and diversify across several providers. Security track record also matters: Binance hasn’t had a major hack of user funds and maintains a SAFU fund; Kraken emphasizes it has “never been hacked”; but KuCoin suffered a \$280M hack in 2020 (fully reimbursed)—a reminder that any platform can have vulnerabilities.
Bottom line: when choosing a CeFi service, look at financial strength, legal reputation, and Proof‑of‑Reserves; spread funds across multiple companies.
Hack and bug risks (DeFi)
Smart contracts can have vulnerabilities that attackers exploit to drain funds. DeFi exploits are common: in 2023 Euler lost around $200M, a Vyper compiler bug hit Curve pools, and an older Yearn vault was affected. Even top projects aren’t immune: they undergo audits and build safety modules (Aave’s Safety Module), but risk can’t be eliminated. To reduce exposure, choose battle‑tested protocols—projects with a long history and multiple independent audits. Diversify capital across contracts so a single incident doesn’t wipe out your portfolio.
Bottom line: DeFi hack/bug risk is always present; mitigate it with audits, diversification, and choosing proven protocols.
Regulatory risks
Stablecoins draw regulatory scrutiny. Interest‑bearing crypto accounts may face restrictions. In the US, the SEC in 2023 shut down several interest programs (BlockFi, Binance US Earn, etc.), requiring securities‑style registration. In Europe, from 2024 the MiCA framework governs stablecoin issuers and service providers—potentially curbing aggressive APYs. Some jurisdictions pressure stablecoins directly: for example, in New York Tether (USDT) is restricted for licensed firms, whereas Circle (USDC) is seen as more transparent yet still tightly monitored. Taxes are another factor: income from staking/lending stablecoins is generally taxable (as interest or capital income), affecting your real net yield.
Bottom line: regulation can limit APYs and product access; net returns depend not only on the protocol but also on your local tax rules.
Depeg risk
While top stablecoins aim to hold $1, they can temporarily slip during market stress.- 📉 In March 2023, amid the Silicon Valley Bank collapse, USDC fell to ~$0.87 and DAI to ~$0.85. The peg recovered after Circle confirmed reserve coverage.
- 📉 In May 2022, during the UST collapse, USDT briefly traded at $0.92–0.95 on some venues but regained its peg.
- 💀 Algorithmic stables carry the highest risk: TerraUSD (UST) and the Anchor protocol imploded in 2022.
- ⚠️ Tron USDD, launched with ~30% APY, also struggled with its peg; its yield was later reduced via Tron DAO Reserve mechanisms.
Bottom line: keep most capital in the most reliable stables (USDC, USDT, DAI); use high‑yield, higher‑risk options only for a small slice of the portfolio.
Concentration and freezes
Diversification is your main shield. Don’t put everything into one instrument: different stablecoins react differently to crises.- ⚠️ Banking issues can hit USDC.
- ⚠️ Offshore reserve scrutiny can hit USDT.
- ⚠️ Collateral mechanism issues can hit DAI.
Bottom line: diversify, follow news, and in force‑majeure (lawsuits, bankruptcies, hacks) temporarily move to fiat or other stables.
Security hygiene
Proper security hygiene is essential:- Use hardware wallets for large balances.
- Verify contract addresses before interacting.
- Install only official apps and extensions.
- For shared control, consider multisig wallets.
Takeaways and recommendations
So where is it profitable and safe to hold each stablecoin? Based on yield and risk, here are practical tips:Tether (USDT)
USDT is the most widely used stablecoin; it’s in high demand for borrowing and trading, so its rates are often higher than USDC or DAI.- 🏦 CeFi: major exchanges (Binance, OKX) frequently offer boosted USDT rates; on KuCoin via P2P lending, double‑digit APYs appear. Good for short‑term income, but mind caps and VIP conditions.
- ⚡ Tron (TRC‑20): many prefer USDT on this network because fees are low and transfers are easy. On CeFi, rates are the same for TRON‑USDT and ERC‑20 USDT.
- 🔗 DeFi (Tron): JustLend pays a modest ~1–3% annually; more complex schemes (e.g., staking TRX + minting USDD) can reach ~13% annually, but those involve algorithmic‑stable exposure and added complexity.
Bottom line: USDT suits those seeking to maximize yield and willing to use CeFi or complex DeFi strategies. For long‑term savings, diversify with more transparent stables like USDC or DAI.
USD Coin (USDC)
USDC by Circle and Coinbase is known for reserve transparency and regulatory oversight. It’s preferable for long‑term, safer storage, but typically pays less than USDT.- 🏦 CeFi: USDC rates are usually 1–2 pp lower than USDT. For example, Binance offered ~5% on USDC vs. ~8% on USDT. Kraken pays around 5% APY; Coinbase has paid ~4% APY via USDC Rewards at times.
- 🔗 DeFi: yields are modest: Aave or Compound usually 3–5%. RWA protocols (Ondo, Maple) offer ~4–7% annually.
- ❄️ Cold storage: for maximum safety, you can skip “earning” altogether and keep USDC on a hardware wallet—it’s close to a digital dollar.
Bottom line: USDC is for conservative investors who value reliability and transparency—ideal for long‑term storage and riding out volatility.
DAI
DAI is a decentralized stablecoin issued by MakerDAO, backed by collateral and governed by the community. By 2025, DAI isn’t purely “crypto‑anarchic”—its reserves include USDC and even treasuries—but it’s still more decentralized than USDT or USDC.- 💼 DAI Savings Rate (DSR): the baseline way to earn—connect DAI to DSR. The current rate is about ~3–3.5% annually, a simple, reliable yield funded by Maker’s revenues.
- 🔗 DeFi strategies: for higher returns, place DAI in Curve pools (e.g., DAI/USDC/USDT) or lend on Compound. DAI often gets extra incentives; some pools are subsidized and can pay 10%+ APY.
- ⚠️ Risks: with DAI you bear Maker protocol risk. A systemic failure could break the peg. So far, DAI has weathered shocks (including the 2020 “black swan”).
Bottom line: choose DAI if you value decentralization and want to reduce reliance on USDT/USDC issuers. A sensible approach is to split: keep some at 3–5% in DSR (safer) and some in higher‑yield DeFi strategies.
✅ Conclusion
The optimal stablecoin strategy in 2025 is diversification and balancing yield with risk. A rational allocation might look like this:
“Safety cushion” — 50%
Keep half your capital in the safest venues—on regulated exchanges (Kraken, Coinbase) or in the DAI Savings Rate. Yields of 3–5% annually help offset USD inflation with minimal risk.“Income portfolio” — 30%
Place about a third on established CeFi platforms (Binance, OKX, KuCoin Lending) or large DeFi protocols (Aave, Curve). Expect ~5–10% APY at moderate risk. Suitable for liquidity provision and Convex‑style farming in well‑established pools.“Alpha strategies” — 20%
Use the remainder for experiments and higher‑yield opportunities: new protocols, exotic pools at 20–30% APY, programs like Tron USDD, or farming on L2s (Arbitrum, etc.). This is your risk bucket—potentially high upside, but if it goes to zero, you won’t lose everything. Don’t allocate more than you can afford to lose.Key point: combine conservative, moderate, and higher‑risk strategies. This balance lets you earn while keeping the portfolio resilient—even in crises.
Following this approach, you can earn on stablecoins while staying comfortable. Stablecoins have become a foundation of the crypto economy, and used wisely they provide passive income—blending the familiarity of deposits with DeFi opportunities.
Remember: stability doesn’t mean stagnation. You can earn on “digital dollars” if you act prudently. Let your USDT, USDC, and DAI work for you—just respect the risks and revisit your strategy regularly as market conditions evolve.
FAQ: Crypto deposits, staking, and stablecoin storage
Where is it better to keep stablecoins: CeFi deposits or DeFi pools?
CeFi is simpler and more predictable on rates but carries provider counterparty risk and withdrawal rules. DeFi offers flexibility and transparency but adds smart‑contract and liquidity risks. Practically, split capital between both.
Why does the advertised APY often differ from what I actually get?
APY assumes reinvestment and may differ from APR. Gaps arise from caps/terms, promo windows, payouts in volatile tokens, idle time, and fees (deposit/withdrawal, swaps, gas). Always compute net yield after all costs.
Do stablecoins have “staking” in the strict sense?
No—as with PoS coins. “Stablecoin staking” usually means lending, liquidity provision, or farming incentives. Yield comes from fees and rewards, not network consensus.
How can I reduce depeg risk?
Diversify across issuers and providers, monitor reserves and news, avoid long‑term imbalance in pools, and check exit liquidity and bridges/exchanges. The broader the diversification, the smaller the impact of any single event.
What does “insurance” for deposits and pools really mean?
In CeFi it’s corporate reserves or third‑party policies with limits/exclusions—not state deposit insurance. In DeFi, policies cover specified smart‑contract risks and usually don’t compensate depeg, market losses, or user mistakes.
How do I know if fees will eat my entire yield?
Add up all costs: deposit/withdrawal, swaps, bridges, gas for deposits and compounding, taxes, and idle time. For smaller sums, use low‑fee networks/rollups and compound less frequently to improve net yield.
Is it realistic to earn >10% annually on stablecoins without taking higher risk?
Generally, no. Double‑digit yields rely on promos, caps/lockups, token incentives, or elevated risks (liquidity, young protocols, lockups). Long‑term, plan around moderate single‑digit returns.