De-Fi Stablecoin Yields Fail to Cover 9.1% Inflation

Stablecoins are useful cryptocurrencies that accelerate Decentralized Finance adoption while providing several advantages for crypto investors to hedge their portfolio; assess the value of digital assets and use as a digital currency.

As expected, the expected gains from De-Fi projects outperforms the centralized finance systems in terms of the APR being served. As the inflation of fiat currencies went crazy, the majority of them hardly cover the double-digit inflation rates upcoming.

Having PolyCUB on Polygon & 20% APR on HBD via Hive Savings are precious as they yield positive net return of money regardless of the majority of the other services.

To understand the importance of pHBD & HBD better, let's check the popular De-Fi projects and the yields on stablecoin farms:

Venus, Aave, Curve, Harvest...

Aave provides 2% APY for Tether lending on Polygon and around 9% for sUSD on Ethereum.

Note: Unfortunately, sUSD is not a popular stablecoin.

Curve is yielding better returns than Aave supply rates.
On Polygon, stablecoins hardly bring any value. However, Ethereum pools are performing much better.

sUSD & Compound pools are consisting of popular stablecoins. Also, they generate more 11% to 14% APY for the investors.

Considering the current De-Fi yields, not too bad!

Venus on BSC is also far from compensating the losses of inflation.

Having 3% against inflation is nothing at all.

Synthetics on Ethereum is yielding 4% APY for stablecoin lending.

sUSD is on the stage once again 😅

Harvest is not too different from the other platforms.

Is it worth supplying your money on Ethereum L1?
Open to discussion.

Hive Savings & PolyCUB to Save Purchasing Power

Although I believe the majority of the stablecoins will not exist in 5-10 years, I enjoy using and researching about them. Stablecoin Mass Adoption, Best Yield on Polygon, Highest APY on Vaults are some of the specific posts that I focused on stablecoins. While writing them, I did not have huge concerns about the inflation rates of fiat currencies.

When it comes to today's conditions, less than 10% APY for stablecoin investment is not a reasonable offer. It can be exceptionally preferred because the platform is highly secure or popular. Otherwise, you just watch the melting of your purchasing power.

Experimenting pHBD pool and HBD Saving on Hive, I can honestly say that they are some of the niche offers for stablecoins in entire crypto ecosystem. Although I love testing new farms for stablecoins, I cannot find one that yields positive return! At that point, I'll grow my stable portfolio on these precious options ✌🏼

Posted Using LeoFinance ^Beta