Yield
How stablecoin vault yield is generated
Interest, incentives, basis or off-chain assets. Name the source or do not trust the rate.
- 01USDC in
- 02Market, basis or RWA
- 03Fees and incentives
- 04What you can exit into
Name the source
Stablecoin vaults do not generate return because the token is stable. Return, if it appears, comes from borrower interest, basis or funding, token incentives, or an off-chain asset such as a treasury bill. Each source fails differently.
The peg is a dependency
A vault full of a stablecoin is exposed to the issuer, the reserves and any bridged representation. A depeg is a loss event even if the strategy itself was ‘working’.
Do not blend the sources
Organic interest and a printed incentive token should be shown apart. If the split is unknown, the page says so. A single APY that mixes them is a marketing number, not a research number.
Digital assets and DeFi protocols are high risk. You may lose some or all of the assets you deploy. AltVaults DeFi provides software, data and informational tools. It does not provide investment advice, recommendations, brokerage, custody, fund management or guaranteed returns.