Earn interest on stablecoins : the profits don't have to stop.

I've compiled some strategies on how to earn interest on stablecoins, as this question gets asked frequently in the daily:

1. 18.5-20% APY on UST using Anchor Protocol. Anchor protocol is a savings platform on the Terra network. Decentralized solution.

Pros : The platform is adamant on keeping the rate not lower than 18.5% APY. Even during the recent crash, it kept the rate at 18.5% (now it's at 19.4% to be precise). The Terra USD (UST) is the most decentralized algorithmic stablecoin. Nexus Mutual is offering insurance for any smart contract hack on Anchor (2.6% APY).

Cons: The platform is only a couple of months old. Terra USD is a lesser know stable coin, and parameters were recently optimized to prevent it from de-pegging. Getting on the Terra system necessitates a bridge, it's easy but an extra step for some.

2. 12-20% APY on USDC, USDT, BUSD or DAI using Orion Money. Orion Money is Anchor's little brother on the Ethereum Network. Decentralized solution.

Pros: Use the stablecoin of your choice. Ethereum network is more known for some.

Cons: 12% is the regular staking APY, if you want a higher staking APY you have to hold the Orion Token. The platform is very new, just launched a couple of weeks ago. Ethereum network fees.

3. 5-20% APY on USDC/USDT or USDC/DAI by providing liquidity on Sushiswap or Quickswap on the Matic Network. 10% APY on USDC/USDT on Pancakeswap on the Binance Smart Chain. Decentralized option.

Pros: Matic network and BSC have very cheap fees, initial APYs were much higher for several weeks (40%-100%). You can always try to find a new AMM, but it is VERY risky if it's an unknown name (risk of getting hacked).

Cons: APYs went down to 5-10%. Still an interesting option. Risk of USDT depegging :P

4. 8-12% on stablecoins on Nexo/Celsius/Blockfi/Ledn. Centralized ''banking'' solution.

Pros: Some feel more safe on a centralized solution, the interest rates are better than your savings account at the bank. Some insurance is provided (unsure of the coverage).

Cons: In order to achieve the 12% you need to hold a significant amount of the native token or a significant portfolio. Interest rates get sometimes dropped without warning.

5. 4% on USDC on Coinbase or 4-5% on USDT/BUSD on Binance. Centralized exchange.

Pros: Some feel more safe on a centralized exchange they use, the interest rates are better than your savings account at the bank. Some insurance is provided (unsure of the coverage).

Cons: Worst savings rate. Can drop interest rates without warning.

So why isn't everyone using these strategies? The money is not FDIC insured and there are risks to crypto : smart contracts get hacked, stablecoins can get de-pegged (not worth 1 USD$), the exchange will leave with your crypto, etc... New insurance strategies are coming to the market for DeFi, but always keep in mind that the interest rates are proportional to the risk.