New Opportunities in Stablecoin Mining: Various Ways to Achieve Annual Returns of Over 70%

With the market warming up and increased volatility, the demand for stablecoins continues to rise. In the DeFi sector, opportunities to earn returns through liquidity Mining have also increased. This article summarizes several ways to achieve high returns through stablecoin Mining, with annualized returns reaching over 70%. The following data is as of November 23.

Maverick

The GHO-USDC trading pair offers an annual percentage rate (APR) of 70.4%. Maverick is a decentralized exchange, and GHO is a stablecoin issued by over-collateralizing positions in Aave. Due to the lack of use cases for GHO, its price has remained below $1 for an extended period. Aave has taken a series of measures to incentivize the liquidity of GHO in an attempt to bring the price back to $1.

The GHO-USDC pool of Maverick on Ethereum adopts a static mode, with a liquidity of 2.6 million USD. Daily incentives of 5,000 GHO are distributed for this pool, with a mining APR of 67.11%, plus a trading fee revenue of 3.29%, resulting in a total APR of 70.4%.

In addition, Maverick also offers a GHO-USDC pool that uses a bi-directional model, with liquidity fluctuating with the price of GHO. The liquidity of this pool is $1.04 million, with a total APR of 66.54%, of which the Mining APR is 47.89% and the trading fee APR is 18.65%.

Velodrome

The USDV/USDC trading pair offers an APR of 32.35%. Velodrome is one of the main DEXs on Optimism. USDV (Verified USD) is a special stablecoin with underlying assets being STBT, which is backed by U.S. Treasury bonds. USDV uses a color tracking algorithm to assign a unique "color" to each stablecoin, allocating earnings to the minters by tracking the minting volume and total supply of various colored tokens.

On Velodrome, the USDV/USDC trading pair has a liquidity of $1.66 million and an APR of 32.35%.

Canto

The cNOTE/USDC trading pair offers an APR of 22.43%. Canto is transforming from a general blockchain platform to a blockchain solution customized for physical assets. NOTE is Canto's accounting unit, minted through over-collateralization of USDC and USDT. Users can provide NOTE deposits to the Canto lending market to receive cNOTE.

Currently, the liquidity of the cNOTE/USDC trading pair on Canto is $4.41 million, with an APR of 22.42%. Users can directly purchase NOTE and deposit to obtain cNOTE, or collateralize USDC/USDT to mint NOTE themselves.

Cetus

The USDT/USDC trading pair offers an APR of 20.49%. Cetus is the main DEX on the Sui public chain. Here, USDT and USDC are cross-chain from Ethereum via Wormhole. This trading pair has a liquidity of 39.23 million USD on Cetus.

Note that Cetus supports concentrated liquidity. To achieve higher returns, liquidity providers usually concentrate liquidity within a narrower range. If the price of USDC/USDT fluctuates, it may be necessary to adjust the strategy.

Thala

The MOD/USDC trading pair offers an APR of 20.53%. Thala is the main DEX on Aptos, providing various products such as DEX, stablecoin, and liquidity staking. MOD is a stablecoin minted through over-collateralization in Thala, and can also be directly exchanged and redeemed for USDC through the anchoring stable module, with a fee of 0.25%.

The Thala MOD/USDC pool has a liquidity of $2.97 million and an APR of 20.5%. However, please note that the MOD earned will take one month to unlock.

Elixir

The USDT/USDC trading pair offers an APR of 27.72%. Elixir Finance is a decentralized and algorithm-driven market-making protocol whose trustless algorithmic model allows a wide range of participants to provide liquidity for trading pairs on both decentralized and centralized platforms.

The current APR for the USDT/USDC spot trading pair on Elixir is 27.72%, with a liquidity of $90,000. 15% of the APR comes from ARB rewards, while the rest is from locked VRTX. The project was once valued at $100 million and has not issued tokens yet; early use may provide an opportunity for airdrops.

Convex

The BUSD/3Crv trading pair offers an APR of 45.31%. Users can provide one or more of BUSD, DAI, USDT, or USDC as liquidity in Curve, and then stake the liquidity tokens in Convex to earn rewards. The liquidity for this trading pair is $236,000, and the rewards mainly consist of CRV, with a small amount of CVX and trading fees.

It should be noted that the deadline for Binance and Paxos to support BUSD is February 2024.