Earn Stablecoin Yield in Xverse: Here's What You Need to Know

TL;DR

• Stablecoin yield refers to earning rewards on stablecoins by depositing them into lending pools that pay interest.
• Xverse offers easy access to stablecoin yield via Xverse Cash on Starknet-based stablecoins by integrating protocols such as Vesu.

What's Stablecoin Yield?

Stablecoin yield refers to the yield you earn on your stablecoins. You can put your idling stablecoins to work in DeFi liquidity pools and receive a share of the fees (or interest) generated as a reward.

How Does It Work?

Your stablecoins can be deposited into on-chain lending markets, where you receive a proportional share of the fees and/or interest generated.
This is also where Xverse comes in to make this process much easier.

In your Xverse wallet's Cash tab, you can now earn yield on your stablecoin holdings without having to exit the app and connect your wallet to third-party platforms.

This comes in the form of an integration with the Starknet-based lending protocol Vesu, which manages the liquidity pools and lending mechanics in the backend.

What Is Vesu & How Does It Work?

Vesu is an open, permissionless DeFi lending protocol based on Starknet and integrated into the wider BitcoinFi ecosystem. It was designed to address the limitations of existing lending protocols, with no intermediaries or governance politics weighing it down.

Vesu offers two main ways for users to generate yield: as Curators and as Liquidity Providers.

Instead of relying on DAOs and governance mechanisms to create new pools, Vesu lets anyone become a Curator and create and govern pools. This role comes with responsibilities and limitations that all ensure the security of all participants.

Liquidity providers are users who deposit their funds into appropriate pools to make them available to borrowers, which earns them part of the fees as an incentive. Liquidity providers don't have any additional responsibilities towards the pool or protocol, making this a significantly more hands-off approach to earning yield than being a Curator.

Finally, Vesu also offers Vaults, which are programmable yield strategies built on Starknet, designed to make onchain yield more accessible and efficient. They include strategies like diversifying USDC yield by lending across multiple Vesu pools, basis trade strategies, and more.

All of these features make Vesu an important part of the Starknet protocol and the wider Bitcoin DeFi ecosystem.

Start Earning Yield on Stablecoins on Xverse, Step-by-Step

There's very little to the process of earning yield on stablecoins using your Xverse wallet.
Let's go through it step by step.

1. Download and set up your Xverse wallet. If you haven't done so already, download the Xverse wallet either as a mobile app or browser extension, then set it up. You'll need to copy your seed phrase to a secure physical location for security purposes.
2. Fund your wallet with Starknet-based stablecoins. You'll want to hold a supported stablecoin, in this case USDC on Starknet, in your wallet. Simply use the Swap feature in the wallet to exchange BTC for Starknet-based USDC.
3. Open the Earn section and select the stablecoin yield option. You'll also find other options for earning yield that you can potentially explore.
4. Deposit the amount you want into the lending pool. You'll want to review all the information before committing.
5. Collect your rewards! Depending on the rules of the pool, it may take a little bit before the rewards start piling up, but you'll get everything deposited into your Xverse wallet.
   

In the meantime, the funds are supplied to a decentralized lending market, and borrowers pay interest to access liquidity from the pool. This interest is then distributed proportionally to depositors, including you, making up your yield.

Get Started with Xverse Earn

If you're ready to start earning yield on your stablecoins, open the Cash tab in your Xverse wallet and get started with just a few clicks.

Download the Xverse wallet to start earning yield on your stablecoins today.