Stablecoin Yield

A yield-bearing stablecoin is a token pegged to the US dollar that also accrues yield to its holders, either through a rebasing supply or by changing the redemption ratio against an underlying base stablecoin. The yield source varies by product: sUSDe earns from Ethena's delta-neutral basis trade on ETH and BTC perpetuals; sDAI and sUSDS pass through the DAI/USDS Savings Rate, which is funded by real-world-asset collateral; sFRAX is backed by Frax's protocol revenue and treasury reserves; USD0 wraps a basket of tokenized real-world assets. Each mechanism has a different risk profile.

Ethena's sUSDe is a Tier 4 (synthetic) asset in the RWTS methodology. The backing is a delta-neutral position — long spot ETH/BTC paired with short perpetual futures — that earns funding-rate yield. The structural risks are clear: funding rates can go negative for sustained periods, exchange counterparty risk on the short legs, and an unwind risk if redemptions exceed the protocol's ability to close perps in size. The trade has performed well through 2024-2026 but it is not a treasury-grade product. Compare its Trust Score against sDAI or sUSDS for a clearer risk gradient.

sDAI (Sky/MakerDAO) and sUSDS (Sky) are sister products from the same issuer with overlapping collateral pools but different distribution channels. sDAI is the legacy DAI Savings Rate wrapper; sUSDS is the newer USDS-denominated version introduced after Sky's rebrand. Both pass through the Sky Savings Rate, which is funded by USDC/USDP holdings, tokenized treasuries (BUIDL, USTB), and DeFi yield sources. sUSDS aligns with Sky's go-forward branding and roadmap; sDAI has the longer track record. Yields are typically identical; the choice is mostly about which ecosystem you're operating in.

Yields vary by mechanism and market conditions. Treasury-backed savings rates (sDAI, sUSDS) tend to track the DSR/SSR, currently in the 4-7% range depending on Sky's policy. Ethena's sUSDe yield fluctuates with perp funding rates, historically averaging 8-15% but spending some periods below 5% when funding compresses. sFRAX pays based on Frax protocol revenue. USD0 yield depends on the underlying RWA basket. All published yields are gross of any platform or wrapping fees.

Redemption mechanics differ. sDAI and sUSDS unwrap instantly on-chain to DAI/USDS at the current rate, which then redeem 1:1 against Sky's PSM. sUSDe unwraps to USDe, which redeems for USDC after a 7-day cooldown (or trades on secondary markets). sFRAX unwraps to FRAX on-chain. USD0 has product-specific redemption terms. In every case, on-chain secondary liquidity exists but pricing can deviate from peg during stress — this is the gap between fully-redeemable savings products and synthetic positions.

No, and that's by design. USDC is a non-yielding fully-reserved stablecoin held in cash and short Treasuries, regulated as an e-money product in multiple jurisdictions — the simplest possible risk profile. Yield-bearing stablecoins all take some additional risk (smart-contract, collateral, market, or counterparty) to generate yield. The Trust Score makes the gradient explicit: BUIDL/USYC sit above sDAI/sUSDS, which sit above sUSDe. The yield premium is the compensation for the additional risk; size positions accordingly.

Every asset gets a Trust Score on a 100-point scale across six dimensions: backing (25 pts) — quality and proof of the collateral; verification (20 pts) — attestation and on-chain transparency; redeemability (15 pts) — how easily you can exit and at what discount; audit (15 pts) — smart-contract and treasury audit posture; regulatory (15 pts) — issuer compliance and licensing; and trackRecord (10 pts) — time in market and incident history. Tier 3 (sDAI, sUSDS) and Tier 4 (sUSDe, USD0) products typically score lower on backing and redeemability than tokenized treasuries but compensate with higher yield. See the full methodology page.