Stablecoins have become quite popular in the world of cryptocurrencies because they tend to offer the best of both worlds – instant and secure processing, as well as stable valuations of fiat currencies.
Since they are backed by a reserve asset, they tend to offer price stability, which is a great advantage over other coins. In bear markets, or sideway trending periods, many crypto investors like to convert their crypto to stablecoins so they are not losing value on their coins. Then when a bull market starts again, they have stablecoins at the ready to trade for other cryptocurrencies.
Investors like to earn interest on stablecoins while they await the next bull run, so their money is working for them instead of sitting stagnant. In this article, we will talk about the platforms that provide the best stablecoin interest rates.
| Where to earn interest | Features | Score | Sign Up |
|---|---|---|---|
Best crypto exchange for staking |
☑️ Fixed and flexible staking to earn interest on stablecoins ☑️ Dual asset and liquidity mining options available for experienced investors |
9.9 | Sign Up |
Biggest range of coins |
☑️ Invest safely at the largest crypto exchange in the world ☑️ Buy stablecoins for only 0.1% fee, and begin staking |
9.7 | Sign Up |
Easy to use app |
☑️ Buy stablecoins on your phone and earn interest straight away ☑️ Lock your stablecoins for 1 month or 3 months and receive higher APY |
9.5 | Sign Up |
Best places to earn interest on stablecoins:
#1. Bybit – Best crypto exchange for stablecoin interest
If you want to earn interest on a crypto exchange, Bybit is the best choice for you. It is easy to buy stablecoins directly on the exchange, and then earn interest on it, without having to transfer it to another platform. You can earn interest on USDT, USDC, TUSD and DAI on Bybit, with flexible and fixed term options.
At the time of writing, USDT has flexible staking with 10.54% APR rewards, but this is capped at 500 USDT. For amounts over 500 USDT, the rate drops to 5.54% APR.
USDC has flexible staking at 9.56% APY, but this is limited to the first 500 USDC. If you have more than 500 USDC, the rewards are 4.56% APR.
For TUSD, the interest rate is 3.14% APR for flexible staking, with no option for fixed staking.
You can earn interest on DAI, with 6.67% APR on your first 1,000 DAI, and 2.67% APR for any amount over that.
Other interesting features on Bybit are the dual asset mining for USDT, and liquidity mining for USDT and USDC. These are for experienced users only, and come with added risk. However, the returns can be much higher. For example, liquidity mining on USDT can earn you up to 219.02% APR, and dual asset mining can be as high as 474.38% APR!
Pros
- Easy to buy crypto and earn interest all from the exchange
- Fixed term and flexible options available
- Dual asset and liquidity mining supported, for much higher rewards
Cons
- For flexible staking, the rewards decrease dramatically for amounts over $500
#2. Binance – Biggest range of coins to stake
Binance is the world’s largest crypto exchange based on trading volume, and we recommend this to users who want a safe and reliable platform to earn interest on their stablecoins. There are very low fees on Binance, of only 0.1% for spot trading, so you can easily buy stablecoins using fiat currency, and then begin staking it to earn interest right away on the platform.
Binance has several stablecoins, such as USDT, USDC, TUSD and DAI. The highest interest rates for stablecoins on Binance is USDC, with 10.29% APR for 30 day locked, or 9.86% APR for flexible staking options.
The good thing about staking on Binance is that you can earn interest on other cryptocurrencies besides stablecoins. With more than 350 coins to earn interest on, you can diversify your staked assets as you HODL for the next bull run.
A downside to Binance is that it is not available in the US. If you live in the US, you can consider using Crypto.com app instead.
Pros
- Stake your stablecoins at the largest crypto exchange in the world
- Earn interest on over 350 cryptocurrencies as well as stablecoins
- Purchase stablecoins with low fees of 0.1% and begin staking on the exchange
Cons
- Not available in the US
- No locked staking for stablecoins
#3. Stargate – Earn interest on stablecoins with DeFi
Stargate is a liquidity transit protocol that allows you to exchange native assets. However, what attracted most of its users is that it allows you to stake stablecoins and receive awards in STG, which is also Stargate’s native crypto.
The platform supports BUSD, USDT, DAI, and USDC stablecoins, and allows an interest rate of up to 6.81% APY at the time of writing.
The only downside we noticed about Stargate is that it might not be the ideal choice for beginners and entry-level investors.
Pros
- Interest rates of up to 6.81%
- Low fees for most coins
Cons
- Not an ideal choice for beginners
#4. Balancer – Another option for stablecoin interest
Built on the Ethereum blockchain, Balancer implements the AMM model, rather than the typical bidding that most systems adopt. Its protocol supports several assets, unlike Uniswap, for example, which supports only two.
However, although it supports up to eight assets in the same liquidity pool, you don’t need to have all the assets to invest in it. Having only one of the assets is just enough. Now, depending on the liquidity pool, the APY can range between 5% and 30%, but practically, the average interest rate is around 13%. Note also that Balancer supports BUSD, USDT, and USDC stablecoins.
When you choose the investment pool after connecting your wallet, the platform will give you an estimate of the potential stablecoin yield for the current week, which can be quite useful.
Balancer Pools are very customizable, so the fees can vary a lot between pools. They can range between 0.0001% and 10%, but the Smart Order Router will take the fees into consideration when determining the optimum price to be offered.
Pros
- Very simple to use
- APY can reach 30%
Cons
- Fees may vary a lot, due to the high customizability of pools
All of these platforms offer some great features and advantages compared to most of the other places where you can invest in stablecoins. Bybit is our top pick overall, due to high interest rates and ease of use. However, you can’t go wrong by choosing any platform from this list, since they are currently the best options to earn interest on stablecoins.
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