Similar to the practice of staking digital assets, yield-generating stablecoins and pools have garnered significant traction as a sophisticated mechanism for accumulating cryptocurrency holdings and generating passive income through prolonged holding periods. Below is an analytical snapshot of the top five stablecoin liquidity pools, ranked by total value locked (TVL) and their corresponding annual percentage yields (APY), as of Mar. 6, 2025.
Decoding the Rise of Yield-Generating Stablecoin Pools in 2025
Following the collapse of Terra’s ecosystem and Anchor, an emergent cohort of yield-bearing stablecoins has risen to prominence, captivating participants seeking reliable returns in decentralized finance. A yield-bearing stablecoin represents a category of fiat-pegged digital tokens that marries the stability inherent to traditional fiat currencies with opportunities to accrue passive income. Certain standard stablecoins, when deposited into sizable liquidity pools, accumulate returns generated by the pools’ operations.
Capital allocated to these instruments is typically channeled into liquidity pools or similar structured frameworks, which function as the backbone for producing returns via strategic protocols—including staking digital assets like ETH, decentralized lending, or deploying capital across diverse financial vehicles. According to metrics collected by defillama.com, the top five pools secure $8.699 billion as of March 6, 2025.
Sky’s USDS leads the rankings in total value locked (TVL) at $3.254 billion. According to defillama.com, the USDS pool currently delivers a 6.50% annual percentage yield (APY). Ethena’s SUSDE pool, offering a superior yield of 10.73% APY, secures $2.996 billion in locked capital. Meanwhile, the Tether (USDT) pool on Aave Version 3 maintains a TVL of $1.317 billion and provides users with a 3.48% APY.
Top five stablecoin pools on March 6, 2025, by TVL with their corresponding annual percentage yields (APY).
Similarly, the USDC pool on Aave V3 yields 3.25% APY, paired with a TVL of $1.211 billion. Utilizing the infrastructure of Sky (formerly MakerDAO), the DAI pool delivers a 4.75% APY, backed by $1.132 billion in holdings. Notable additions to this cohort include Usual’s USD0++ at 11.56% APY, the SPDAI pool on Morpho Blue at 8.58% APY, and USDS via Spark at 7.17% APY.
Allocating capital to these pools delivers distinct advantages, including consistent yield generation, liquidity for seamless redemptions, and accessible entry points for risk-conscious investors. Furthermore, they facilitate portfolio diversification and engagement with decentralized protocols without necessitating hands-on oversight.
While yield-bearing stablecoin pools present enticing return prospects, they are accompanied by meaningful risks. Participants must navigate potential hazards such as smart contract vulnerabilities, temporary valuation discrepancies, asset misappropriation, and stablecoin depegging events.
Compounding these concerns are regulatory ambiguities and fraudulent schemes within decentralized finance (DeFi), which heighten exposure to financial instability. Meticulous research and cautious strategy are imperative to mitigate losses in this dynamic and nascent ecosystem.