What to do with stable coins (USDT/USDC/DAI, and FDUSD) to optimize?
Stablecoins like USDT, USDC, DAI, and FDUSD remain ideal for low-volatility yield generation, offering stability pegged to the USD while earning passive income through lending, liquidity provision, or structured products.
You can consider staking on tier 1 cryptocurrency exchanges like Coinbase, #Binance
Risks and Best Practices
- Depegging/Platform Failure: Stick to audited protocols (Aave: $28B TVL); diversify across 2-3 stablecoins.
- Regulatory: US/EU users favor compliant options like Coinbase (GENIUS Act compliant).
- Taxes: Track APY as interest income; CeFi platforms often provide 1099 forms.
- Start Small: Test with $100-500; monitor via DeFiLlama or Dune Analytics dashboards.
