The crypto market has collapsed in the recent few weeks. The decrease in tokens’ prices makes stable tokens becoming a safe choice for investors. However, stable coins only staying in the wallet could not make profits for their owners. Therefore, most users will deposit or stake stable tokens to earn profits from yield farming. As the old saying goes, money never sleeps. What should we do to have a safe and profitable investment plan?

Note: Our report only analyzes data of the market in the past. We do not make any predictions about the market. Thus, please consider our report as a reference but not a suggestion when making your decision.

Another fact is that one of TechFi’s partners - Trava Finance, made a useful tool for aggregating choices for you, called BRicher. You can check it out here:

In our write following, we analyze the interest rate depositing of stable tokens in the lending pool in Binance Smart Chain(BSC). Four chosen tokens are USDT, USDC, DAI, and BUSD. Due to being the highest market cap stable tokens in BSC now, they are naturally chosen tokens for investors. Venus, Cream, and Trava are accordingly lending pools we mention in this write.

Following that, the total TVL of 4 types of stable tokens in these chosen lending pools is shown below:

Total Value Lock in All Pools
For more details, the next chart shows the TVL of each token in these lending pools:

Total Value Lock in Each Pool

Utilization Rate

One criterion affecting the lending pool's deposit rate is the utilization rate. It is the ratio of tokens borrowed out of the total token supply. A high ratio signifies that a lot of borrowing happens, so interest rates should rise to get more users to deposit into the system. In contrast, a low ratio indicates that demand for borrowing is low, and therefore interest rates should decrease to encourage more users to borrow tokens from lending.

Intuitively speaking, a high deposit interest rate stems from a higher rate of utilization . Thus, to evaluate the deposit rates, we need to consider how the utilization rates of these stable tokens in 3 lendings were in the last month.

Utilization of USDC
Utilization of USDT

Utilization of BUSD
Utilization of DAI

The graph illustrates that the average utilization rate of stable tokens was highest in Trava, 2nd in Venus, and last in Cream. The exception is DAI; the highest utilization rate was Venus, followed by Cream and Trava. Stable tokens are often active in lending and their utilization rates in lending were over 50%.

Deposit APY

This is the most important part which is about the deposit interest rate of Stable tokens lending. When you deposit a token in lending, you will earn two types of interest. The first is the reward interest of depositing, and the second one is the interest of the deposited tokens, which is normally called the APY (Annual Percentage Yield). Let's take a look at the APY of stable tokens in these lendings in the last 30 days:

Deposit APY of USDT
APY Line Graph of USDT

Deposit APY of USDC
APY Line Graph of USDC

Deposit APY of BUSD
APY Line Graph of BUSD

Deposit APY of DAI
APY Line Graph of DAI

Deposit APR

The reward interest rate is the value of the reward token we earn after 1-year divided by our supply. It is called APR (Annual Percentage Rate). While reward tokens are normally the token of DApps, for some lending like Cream, the APR of depositing is zero. APR might be a parameter that should be considered carefully because the value of reward interest strongly depends on the price of reward tokens. There is a big gap between the APR in different lending pools, for example, Trava and Venus, as shown below:

Deposit APR of USDT
APR Line Graph of USDT

Deposit APR of USDC
APR Line Graph of USDC

Deposit APR of BUSD
APR Line Graph of BUSD

Deposit APR of DAI
APR Line Graph of DAI

In general, the APR of stable tokens in TRAVA is higher than Venus. Another fact, APR is dependent on the total supply of deposited tokens. It is also the benefit of depositing in a small TVL lending pool in comparison to higher reputation lending.

Total ROI

We suppose that the ROI (Return of Investment) of lending is calculated on the sum of APR and APY. Therefore, we have the overall graph below:

ROI of Stable Coin

Here are some conclusions we made while analyzing the last 30 days of lending data. Hope that it will be useful for your decision-making.