The best strategies in DeFi for stablecoins

Last updated: April 2022

Aave (with leverage)

Aave is a decentralized lending platform on Ethereum, Polygon and Avalanche. The best strategy is yield farming MATIC rewards or AVAX rewards on Aave by depositing a stablecoin, borrowing against that position, and redepositing the borrowed stablecoin, looping 3–4x to farm the rewards yield.

Yield: 4–6% (lending interest + AVAX/MATIC rewards)

mStable

mStable is a decentralized stablecoin ecosystem on Ethereum and Polygon that offers users a capital efficient way to earn yield on their stablecoins. Users can earn interest from decentralized lending on protocols like Aave and Compound and a proportion of swap fees that the protocol accrues.

Yield: 10–20% (lending interest + swap fees + MTA rewards)