How to make stablecoins productive assets

The best course of action when you don't know what to do is to do nothing. Right? Most of you will say a big fat “Yes.” But, how can you still earn a profit while sitting on a bunch of stablecoins, waiting for clarity? I might have got the answer for you, sers.

It's simple- DeFi yield farming. Now, before you go ahead and leave this post because DeFi is not the next big thing in crypto, wait just a bit. Let me explain.

What if you take those stablecoins (let's say USDT/USDC) that are doing exactly nothing, and deploy them in a liquidity pool on a DEX? Now, this might have a bit more risk than simply holding, but that risk is greatly reduced if you use a reputable and trusted DEX. Now you've got a recipe for a consistent, beautiful yield.

For example, my go-to blockchain is Polygon (cheap gas, high TVl, lots of stable coins, etc). While not the most popular one out there currently (mostly price-related drama), the tech is still there. When it comes to the DEX, that’s easy! I use QuickSwap, which is the leading DEX on Polygon. Been using it since forever and never had any issue, plus they have been a DEX for quite some time with no exploit/compromise. You could go for others such as Uniswap and alike, we're just talking about personal taste here.

One reason I choose Quickswap is that it’s the only DEX that incentivizes stable pools, which leads to a higher yield. Here are some APRs you could get on QuickSwap right now: * USDC/axlUSDC: 14.3% * DAI/USDT: 12.5% * USDC/USDT: 9.7%

While there's a bit more risk involved, an almost 10% APR on a USDC/USDT pair is nothing to sniff at, and doesn’t rely on gimmicks that eventually go bust like we’ve seen with UST/BlockFi/Genesis etc

Now, what are your favorite ways of sitting on your hands? Do you just hold? Do you stake? Do you LP? I’d love to learn how others are making the most out of their idle coins.