Original Title: Stablecoin Update May 2025
Original Source: Artemis
Original Compilation: Bitpush
In the cryptocurrency market, stablecoins are no longer just "stable"—they silently help you earn money. From U.S. Treasury yields to perpetual contract arbitrage, interest-bearing stablecoins are becoming the new income engine for crypto investors. Currently, dozens of related projects boast a market cap exceeding $20 million, with a total value surpassing $10 billion. This article analyzes the income sources of mainstream interest-generating stablecoins and highlights the most representative market projects to identify who’s truly "making money" for you.
What Is an Interest-Bearing Stablecoin?
Unlike conventional stablecoins like USDT or USDC, which serve solely as value reserves, interest-bearing stablecoins enable users to earn passive income while holding them. Their core value lies in delivering additional yield to holders through underlying strategies while maintaining the stablecoin’s peg.
How Are Yields Generated?
Interest-bearing stablecoins derive income from diverse sources, categorized as follows:
1. Real World Asset (RWA) Investments
Protocols invest funds in low-risk real-world assets like U.S. Treasuries, money market funds, or corporate bonds, distributing returns to holders.
2. DeFi Strategies
Protocols deposit stablecoins into decentralized finance (DeFi) liquidity pools, engage in yield farming, or deploy delta-neutral strategies to exploit market inefficiencies.
3. Lending
Deposits are loaned to borrowers, with interest paid becoming the holder’s income.
4. Debt-Backed Models
Users lock cryptocurrencies as collateral to borrow stablecoins, with revenue from stability fees or interest on non-stablecoin collateral.
5. Hybrid Sources
Yields combine RWA tokenization, DeFi protocols, and centralized finance (CeFi) platforms for diversified returns.
Market Overview: Top Interest-Bearing Stablecoin Projects (≥$20M Total Supply)
RWA-Backed Stablecoins
Invest in low-risk, profitable real-world assets like U.S. Treasuries.
- Ethena Labs (USDtb – $1.3B)
- Ondo Finance (USDY – $560M)
- BUIDL ($570M)
👉 Explore RWA-backed opportunities
Arbitrage/Delta-Neutral Strategies
Profit from market-neutral tactics like perpetual funding arbitrage.
- Ethena Labs (USDe – $6B)
- Falcon Stable (USDf – $573M)
Lending/Debt-Backed Stablecoins
Generate yield via loans or collateralized debt positions (CDPs).
- Sky (DAI – $5.3B)
- Curve Finance (crvUSD – $840M)
Hybrid Models
Combine DeFi, CeFi, and traditional finance for optimized returns.
- Reservoir (rUSD – $230.5M)
- Coinshift (csUSDL – $126.6M)
Key Takeaways
- Interest-bearing stablecoins offer passive income through RWA, DeFi, lending, or hybrid strategies.
- Projects like Ethena Labs and Ondo Finance lead with billions in market cap.
- Risks include smart contract vulnerabilities, protocol failures, and market volatility.
FAQ
Q: Are interest-bearing stablecoins safe?
A: While they offer yield, risks like smart contract exploits or collateral liquidation exist. Diversify and research protocols thoroughly.
Q: How do RWA-backed stablecoins work?
A: They tokenize real-world assets (e.g., Treasuries), distributing yields to holders.
Q: What’s the best strategy for beginners?
A: Start with blue-chip protocols like DAI or USDe, which have established track records.
Note: All data reflects May 2025 metrics. Always conduct due diligence before investing.