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Yield-Bearing Stablecoin

Definition

A Yield-Bearing Stablecoin is a type of stablecoin that not only maintains a peg to a stable asset but also generates passive income for its holders. This yield typically comes from underlying lending protocols, staking mechanisms, or other decentralized finance strategies. It combines the stability of a stablecoin with the earning potential of other digital assets. Such stablecoins aim to offer both capital preservation and growth.