Stablecoins are great for payments, trading, and moving money fast. But in 2025, they’ve started doing more than sitting in your wallet.
Let’s break down how some of the top protocols are helping users earn more with stablecoins. With yield-bearing stablecoins, your $1 stablecoin stays stable and earns passive income.
1). sDAI – MakerDAO (via Spark Protocol)
With sDAI, you get around 5–8% annual percentage yield. So, how do you go about it?
- Get DAI stablecoin in your wallet.
- Go to Spark Protocol
- Deposit your DAI into Spark’s savings vault.
Source: X
In return, you receive sDAI, a special type of token that grows in value automatically over time (thanks to the ERC-4626 standard). There is no staking or manual claiming—your balance keeps increasing.
2). sUSDe – Ethena Labs
Here, you get an 8–15% annual percentage yield (sometimes higher in bull markets). This process is possible, but it requires following specific steps even though it involves complex execution.
- Get ETH in your wallet.
- Head to the Ethena Labs platform
- Deposit ETH into the sUSDe minting system.
- Ethena will stake your ETH and short ETH on exchanges to generate a delta-neutral yield.
2/ About sUSDe
sUSDe, or @ethena_labs Ethena Staked USDe, is a collateralized stablecoin that maintains its peg using automated and programmatic delta-neutral hedges relative to the underlying assets.
— Gauntlet (@gauntlet_xyz) February 4, 2025
The protocol generates profits through its staking rewards and its ability to earn funding rates. A synthetic stablecoin, like sUSD, gives you compounded returns. Just hold sUSDe to earn—no staking required. You get a high yield, but not without risk—especially if the crypto market gets volatile.
3). sUSDS – Sky Ecosystem (ex-MakerDAO)
You get about 4.5% APY. Now, see this as a hybrid approach. The yield comes from both tokenized U.S. Treasuries and lending activity via Spark. So;
- Get sUSDS (mint or buy it on supported DeFi platforms).
- Hold sUSDS in your wallet.
- You’ll get the yield in your balance (auto-accruing).
- No lockups, no staking—fully liquid and governed by the Sky Savings Rate (SSR).
New USDS and SPK rewards are live for USDS suppliers on Aave!
• 50,000 USDS will be allocated weekly to bootstrap rewards and will then adjust to match at least the sUSDS rate, currently at 6.5%.
• 3.33 million SPK pre-farming airdrop allocation is distributed on a monthly… pic.twitter.com/qFII0eXmIh
— Sky (@SkyEcosystem) October 9, 2024
4). USDY – Ondo Finance
This yield-bearing stablecoin offers 4–5% APY. It is backed 1:1 by short-term Treasuries and bank deposits, acting like a tokenized money market fund. USDY is only available to non-U.S. users.
The fixed APY for $USDY in December is 4.65%. Not available to US persons.
Disclaimer: https://t.co/ESN6bWM7iE pic.twitter.com/FrFcMIJX55
— Ondo Finance (@OndoFinance) December 1, 2024
- Go to Ondo Finance.
- Mint or buy USDY.
- Hold USDY in your wallet.
So, your USDY grows passively—ideal for anyone looking for a TradFi-style yield with on-chain convenience.
5). USDM – Mountain Protocol
USDM on the Mountain protocol offers 4–5% APY. 100% of USDM’s reserves are in U.S. T-bills.
- Visit Mountain Protocol
- Buy or mint USDM, backed by U.S. Treasuries.
- Hold USDM and watch your balance increase with no extra steps.
It rebases daily, meaning your token balance increases a little every day (about 0.0137%). This stablecoin offers simplicity, transparency, and growth. It’s only available for users outside the U.S.
Earn 5% APY on your stablecoins with USDM—an institutional-grade, yield-bearing stablecoin.
Fully regulated and compliant, USDM is backed by short-duration U.S. Treasuries (T-Bills).
Powered my Mountain Protocol pic.twitter.com/EzM4S49k9k
— arda | interspace.fi (@ardaerturk) November 14, 2024
Conclusion
Stablecoins are not only a way to store digital dollars—they’re becoming the backbone of on-chain finance. You can earn returns with yield-bearing stablecoins while avoiding the volatile crypto market. Whether looking for safer, more predictable returns (like sDAI and USDM) or open to higher-risk, higher-reward options (like sUSDe), Yield-Bearing stablecoins are for earning on autopilot.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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