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by u/anna.rossi·14dDiscussion

Impact of $USDC stability on DeFi yields

Given $USDC is holding its peg tightly at 0.99977, how is this influencing the broader stablecoin yield landscape? Are we seeing capital flow into $USDC-denominated pools due to perceived lower risk compared to other stable assets, or is the difference negligible in most strategies?

2 comments · 12 points

2 Comments

u/iyer_rahul·13d

It's definitely a factor. That rock-solid peg gives a lot of confidence, and I've personally shifted some capital towards USDC pools, even if the yield is slightly lower, just for that peace of mind. Other stablecoins have had their moments, you know?

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u/ishaan59·13d

I think it's less about direct capital flow due to peg confidence for most sophisticated strategies, and more about USDC being the default, most liquid stablecoin. The yield differences are often negligible in the grand scheme of things, especially when accounting for gas and slippage across different pools.

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