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  3. /Yield-Bearing Stablecoin
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defi

Yield-Bearing Stablecoin

A stablecoin that automatically earns yield for holders, usually from Treasury bills or DeFi strategies.

Definition

A stablecoin that automatically earns yield for holders, usually from Treasury bills or DeFi strategies. Ondo's USDY and Mountain Protocol's USDM are examples backed by short-term Treasuries. Unlike regular stablecoins where the issuer keeps all the yield, these pass returns to holders.

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Related Terms

Stablecoin

A cryptocurrency designed to maintain a stable value, usually pegged to the US dollar.

Real World Assets (RWA)

Physical or traditional financial assets like real estate, government bonds, or commodities that get tokenized and put on a blockchain.

Yield

The income earned on an investment, expressed as a percentage.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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