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.
Context ∞ Yield-Bearing Stablecoins are a growing area of interest in decentralized finance, offering an alternative to traditional stablecoins by