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Stablecoin Yields

Definition

Stablecoin yields refer to the returns generated from holding or lending stablecoins, which are cryptocurrencies pegged to a stable asset like a fiat currency. These yields are typically earned through various decentralized finance (DeFi) protocols, including lending platforms, liquidity pools, and staking mechanisms. Investors seek stablecoin yields to earn passive income while mitigating the price volatility associated with other cryptocurrencies. The rates offered can vary based on market demand, protocol risk, and overall liquidity conditions.