<p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ecf854a1c69b59a8e6023f659fee92.jpg" alt="Optimize profits with Stablecoins" title="Optimize profits with Stablecoins" width="600" height="401"></p><p dir="ltr"><strong>Stablecoins</strong> are coins whose value is tied to a fixed asset such as gold or other currencies. In the crypto market, the most popular stablecoins are USDT, USDC, UST, etc.</p><p dir="ltr">We usually do not get much profit if we just keep 100% stablecoins in our wallet, especially during periods of a strong bull market. In a bearish market, everyone will have the same tendency to pessimism. With that in mind, low volatile coins like stablecoins will provide a good way to earn while weathering the storm.</p><h2>Ways to optimize profits with Stablecoins</h2><h3>1. CEX Lending</h3><p>CEX Lending is a form of lending through centralized exchanges (CEX). This is a way for users to lend money or assets to other people (borrowers) at a defined interest rate. They will eventually get the principle and interest as specified in the initial agreement. With lending, as opposed to staking, the exchange owner is the one who handles interest payments on your behalf. The payers in Staking Rewards are the project owners. APY rate of some major exchanges in the market is pretty high such as:</p><ul><li><p>Binance: around 10%</p></li><li><p>Gate.io: around 4%</p></li><li><p>Okex: around 6%</p></li><li><p>AscendEx: around 8.3% - 18%</p></li><li><p>MXC: around 6%</p></li></ul><p>The reason why APY rates were quite high was the fundamental lack of access to debt and credit from traditional banks and traditional brokerages with crypto as collateral. Stablecoin pools on exchanges, such as Binance, often appear in the Earn section. The advantage of CEX Lending is that it is quite simple and safe, especially for large exchanges with many users like Binance, Gate.io, KuCoin, etc.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ecf84efe0156ada8e6023f659fee92.jpg" alt="binance lending" title="binance lending" width="600" height="311"></p><h3>2. DeFi Lending&nbsp;</h3><p dir="ltr">When participating in DeFi Lending, you will put stablecoins into the <a href="https://www.builder.news/news/7-best-defi-lending-platforms-in-2022" alt="7 best defi lending platforms in 2022" title="7 best defi lending platforms in 2022" target="_blank" rel="" class="">major lending platforms</a> in the market. For example, <u>Aave</u> is having APR of around 6%. Although the interest rate isn't high, this is a reliable option, especially on large Lending platforms such as Aave, Compound, Cream, etc.</p><p dir="ltr">Certain lending methods will offer incentives to users. However, these kinds of incentive schemes are relatively uncommon, so please take the time to frequently check the platforms for opportunities.&nbsp;</p><p dir="ltr">To participate in DeFi Lending, you need to prepare a non-custodial wallet, such as Metamask wallet, then access the Lending platform on the respective chains, connect the wallet and proceed to deposit assets.&nbsp;</p><h3>3. Keeping USDT/BUSD to buy the dip</h3><p dir="ltr">If you have ever traded P2P on major exchanges (eg Binance), you can easily realize that when the market does not have sudden fluctuations, the exchange rate of&nbsp;USDT/BUSD will also be relatively stable.</p><p dir="ltr">On the contrary, when the market fluctuates, many people will actively buy USDT/BUSD to be ready to buy the dip. This is an opportunity to sell USDT/BUSD at a higher price. After a few days when the market has stabilized, you can buy back USDT at the usual price. However, this approach will probably be more effective for those with high capital.&nbsp;</p><h3>4. AMM Farming</h3><p dir="ltr">Farming is a form of profit-making by lending or providing liquidity on DeFi protocols. Farming is similar to Staking, but a bit more complicated, that is, you need to swap for LP tokens to start staking.</p><p dir="ltr">AMM (Automated Market Maker) is a transaction method that uses an algorithm to calculate the token price at the time of purchase. Stablecoins on AMMs can exist in many different forms, for example, on Saber platform on Solana, stablecoin UST will have the symbol “atUST”.</p><h3>5. Bridge Farming</h3><p dir="ltr">For Cross-chain Bridges, the protocol locks your assets on one blockchain and issues them on another, thus creating an opportunity for Farming instead of simply Farming on AMMs and Liquidity Pools. This can be a fairly new concept and is also a good way to make a profit for those who are new to the market.</p><p dir="ltr">One of the biggest Bridge protocols today is cBridge, which has a lot of different asset pools, including stablecoins. You can deposit stablecoins on many different chains to receive rewards in CELR tokens.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ecf84efe015e3aa8e6023f659fee92.jpg" alt="bridge farming" title="bridge farming" width="600" height="352"></p><h2>&nbsp;Important note when optimizing profits with Stablecoins</h2><h3>Actively looking for opportunities</h3><p dir="ltr">You should actively search for possibilities to increase revenues in various ecosystems and protocols because in the DeFi market, opportunities won't stay in one place for long.</p><p dir="ltr">One of the easiest ways is to use the Yield Aggregator <a href="https://www.builder.news/news/beefy-finance-review-an-optimized-way-to-yield-your-balance" alt="Beefy Finance Review" title="Beefy Finance Review" target="_blank" rel="" class=""><strong>Beefy Finance</strong></a> platform (which works on 16 different chains), then choose the Stablecoin Pool to find opportunities with Stablecoins.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ecf84efe01626ca8e6023f659fee92.jpg" alt="Beefy Finance " title="Beefy Finance " width="600" height="247"></p><h3>Risk prevention&nbsp;</h3><p dir="ltr">When participating in Farming, especially in DeFi, you should pay attention to common DeFi risks such as network congestion, hacking, <a href="https://www.builder.news/earn/what-is-a-rug-pull-in-crypto-and-how-to-prevent" alt="what is a rug pull in crypto and how to prevent" title="What is a rug pull in crypto and how to prevent" target="_blank" rel="" class="">rug pull</a>, ...</p><p dir="ltr">Therefore, to avoid unfortunate losses and to optimize profits as much as possible, you should choose reputable platforms that are used by many people and split the amount of capital you have to farm in many investing pools.</p><h3>Not buying USDT when the market is volatile</h3><p dir="ltr">When the market is in a correction phase and the USDT exchange rate is fluctuating strongly, you should not take advantage of buying USDT.</p><p dir="ltr">If you buy while the USDT price is too high, your profits will be significantly reduced and may cause unnecessary losses, making profit optimization no longer effective.</p><p dir="ltr">Some protocols will reward their tokens, causing APY to be extremely high when the token price increases and also gradually decrease when the token price declines. Therefore, we need to carefully examine the reward received as well as the growth potential of that token in the future for the best profit.</p><h3>&nbsp;Always having stablecoins in your portfolio</h3><p dir="ltr">To have an active advantage, as well as to protect yourself in all market situations, you should hold a stablecoin amount of about 15% - 20% of the total assets in your portfolio.</p><p dir="ltr">So when the market rises sharply, 80% of total assets can still be profitable, and when the market corrects you will have a certain amount of capital ready to catch the bottom.</p><h2>Conclusion</h2><p dir="ltr">During times of market stress, stablecoins offer protection from volatility. There is one stablecoin strategy offered by Yield App, which is to pay annual interest rates that continue to beat rising inflation across the developed world.&nbsp; But unlike a bank account, a stablecoin portfolio doesn’t provide any protection if there’s a provider failure, while cash in a bank is protected up to $250,000 in the US and up to €100,000 in the EU should the bank suffer a major event. Therefore, users must always be aware that any exposure to digital assets might carry a level of risk.&nbsp;</p><p dir="ltr">Hopefully, with the ways to make profits with stablecoins on the major ecosystems in the market mentioned above, you can optimize profits even during the most volatile market times.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Let us suggest ways to maximize profits when holding stablecoins, the most prominent protocols on major ecosystems, as well as some tips and notes when participating in making profits with stablecoins. 

Ways to optimize profits with Stablecoins in a bearish market