USDC staking has become one of the most popular methods in Centralized Finance and Decentralized Finance to earn safe crypto yield with US Dollars. The USDC token is fully collateralized 1:1 with USD and is fully redeemable at any time.

The best USDC staking platform for high interest rates is Stargate Finance. They offer up to 8% APY on USDC deposits on Ethereum, Avalache, Polygon, Arbitrum or Optimism.

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What is USDC?

USDC is a digital dollar, issued by Circle on the Ethereum blockchain. It's an ERC20 token that represents US dollars held in reserve by approved financial institutions. USDC can be used to earn interest with, trade, store value, and send or receive payments anywhere in the world.

The USDC stablecoin is the safest in the world because they are the most transparent with their treasury. As a US-based company, they are regularly audited by top-tier firms to ensure that each USDC token that is issued is fully backed with an equivalent reserve.

USDC Attestation Reports.

What is USDC Staking?

USDC staking is the process of depositing your USDC tokens on a centralized or decentralized lending platform to earn yield. These services take your deposit and lend it out to borrowers, who will pay you a yield for providing liquidity and capital.

The kind of platforms you can deposit USDC tokens to stake and earn interest include:

Compare USDC interest rates via DefiRate.

USDC Staking Risks

The yield you earn on your USDC varies depending on the platform you use, and the amount of risk associated with the application.

Generally speaking, the higher yield on your USDC you earn, the higher the implied risk is. The kind of risks that you could think of associated with USDC staking are:

  • Smart Contract Risk: A DeFi application having defective smart contracts and being exploited by a hacker.
  • Company Risk: A DeFi application could have poor risk management practices and lose customer deposits from reckless leverage. An example of this is the recent Celsius crisis.

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Best USDC Staking Platform

We have shortlisted the two best USDC staking platforms across Centralized Finance and Decentralized Finance below.

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Best Centralized USDC Staking Platform

The best centralized USDC staking platform to earn yield on your tokens is Nexo. They offer over 12% APR on USDC deposits through their centralized lending facility. Their interest rates are partially subsidized by NEXO tokens, which is up to 4% of the total yield.

Nexo is considered to be a secure centralized USDC staking application, however it is not without its risks. Their lending platform is not based in the United States and may be subject to less stringent regulatory requirements.

Nexo USDC Staking
Earn up to 1 2% APR on USDC, USDT, TUSD, DAI & more via Nexo.

Best Decentralized USDC Staking Platform

The best decentralized USDC staking platform is Stargate Finance. Stargate is a cross-chain stablecoin bridge that allows users to send USDC across Ethereum, Avalanche, Polygon, Arbitrum, Optimism, Fantom, and other networks.

Users of Stargate Finance are incentivized to deposit USDC on different networks and are paid to provide liquidity to facilitate these transactions. This is a much safer way to earn yield than Nexo because it decentralized and the team does not have the ability to freeze funds. You can read more about this platform in our Stargate Finance Review.

Stargate USDC Staking
Earn up to 7% APY with stablecoins on Stargate.

Is USDC Staking legal?

Yes, USDC staking is legal. USDC is a stablecoin that is backed by US dollars, meaning that each USDC token is worth $1 USD. USDC staking is simply the process of locking up your USDC to earn interest. Investors may need to pay capital gains tax when they claim the yield from their USDC staking.

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USDC Staking Calculator

The calculator below is designed to help you work out your passive income from staking USDC on various platforms.

Calculate APY

8.33%

APY

$22,242.56

Future Value

$12,242.56

Total Interest

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Dollar Return

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