If you are looking for the best place to earn interest on stable coins like USDC, USDT, DAI and more - our guide has you covered. Our research team has sifted through the best lending protocol's and DEX's across Layer 1 and Layer 2 protocols to find the best yields for depositors and stakers.
We give a higher preference to secure networks with high Total Value Locked like Ethereum, Avalanche (AVAX), Solana, Optimism and Arbitrum to find more risk-adjusted stablecoin yields. Most times, the high yield on risky networks and platforms is not worth the smart contract risks.
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What is the best Stablecoin Yield Farm?
The best stablecoin yield farm across all crypto networks is AAVE. They offer the easiest overall user experience to earn high yields multi-chain on stablecoins like USDC, USDT and DAI. They are the most secure and well-audited platform in the world, with a large institutional backing.
AAVE is the best stablecoin farm because they offer the highest yields, lowest borrowing rates and a wide range of tokens like USDC, USDT, DAI and FRAX. You can access AAVE from a variety of networks including Ethereum, Avalanche, Optimism, Polygon and more.
- USD APY: 3-5%
- Chains: ETH, AVAX, MATIC, Arbitrum, Fantom, Harmony
- Tokens: DAI, USDC, USDT and FRAX
Their platform is by far the most secure and has the most Total Value Locked compared to other protocols. They currently have over $17B in liquidity locked on their money market earning yield.
#2 Curve Finance
Curve Finance is a great platform for advanced crypto users looking to earn slightly higher rewards with some added complexity. With this platform, investors need to deposit or supply liquidity to a two, or three-sided pool with various stablecoins. A pool example would be USDC/UST/MIM.
This creates a pool of liquidity for traders to be able to swap between the stablecoins for low fees and low slippage. Users who deposit stablecoins to this liquidity pool can earn high rewards from swap fees.
- USD APY: 5-8%
- Chains: ETH, AVAX, Arbitrum, Polygon
- Tokens: USDC, UST, DAI, MIM, FRAX, LUSD, BUSD
It is pertinent to note that we would only recommend Curve Finance for advanced users and DeFi natives. It can get quite complicated and requires active management and attention. Other platforms like AAVE are more 'set and forget'.
#3 Stargate Finance
Stargate Finance is a platform that enables cross-chain swaps for stablecoins like USDC, USDT and DAI. Investors can provide liquidity to the pools that enable these swaps to earn high yields. This stablecoin swap exchange is also backed by some of the largest names in the space like Alameda Research, FTX, Naval and others.
- USD APY: 3-4%
- Chains: ETH, AVAX, Arbitrum, Polygon, Binance Smart Chain
- Tokens: USDC, USDT and BUSD
The Stargate Finance token rewards are mainly paid out in STG (their native token). This plarform is growing very quickly so it could be a great way to earn STG tokens to invest for free by providing stablecoin liquidity.
Fantom Stablecoin Yield Farms
If you are looking for good stablecoin yields on alternative EVM chains like Fantom, we recommend that you check out SpookySwap. This is a popular DEX on the FTM Opera Network that provides safe and reasonable yields for USDC, USDT, DAI, MIM and FRAX deposits.
Are Stablecoins Safe?
The safety of the stablecoin varies depending on it's underlying design. Our research has found that fully-collateralized stablecoins like USDC and USDT are the most safe, which is why they have been around for the longest. If you are looking to earn yield in DeFi, we recommend you stick to these two coins.
Uncollateralized stablecoins like UST (by Terra Labs) and Magic Internet Money (MIM) have proven to have a weak $1 peg that has broken several times in the past. We would recommend avoiding these types of stablecoins on any chain.