## A New Approach to Stablecoin Yields

Having USDT sitting idle always feels like a waste. Recently, many people have been trying a simple strategy: by making a small conversion with stablecoins, they can obtain returns much higher than bank interest. Taking USDD as an example, let's see how to operate specifically.

## Complete Operation Path

The process is actually quite straightforward - it only takes three steps to get started:

Step 1: Exchange USDT for USDD; Step 2: Convert USDD to sUSDD; Finally, wait for the earnings to be credited.

sUSDD itself offers a benchmark APY of 12%, which means that even without doing anything, holdings are steadily growing. However, if you participate in specific liquidity incentive periods (30-day term), the overall yield can reach around 25.82%, which is indeed very attractive compared to traditional financial products.

## How low is the participation threshold?

The biggest concern with such activities is high funding requirements. This setup is quite friendly—only 100 USDT is needed to start, which is completely pressure-free for those who want to test the waters. Throughout the 30-day period, a daily reward quota of 10,000 USDD is distributed, and there is no "first come, first served" competition; latecomers can also receive an average reward distribution.

From a mathematical perspective, if you invest 1,000 USDT, the benchmark return within 30 days is approximately 120 USDT, and with the accumulation of daily rewards, the actual return will be significantly higher. For idle stablecoin holdings, this is indeed a good allocation plan.

## Where are the risk boundaries?

USDD, as an algorithmic stablecoin, relies on the over-collateralization of assets such as BTC, USDT, and TRX to maintain its value stability, with a collateralization ratio of over 120%. This means that even if the prices of the underlying assets fluctuate, USDD has enough buffer space to protect the peg to the dollar.

However, it is important to recognize that this still falls under the category of DeFi yields—contract risks and liquidity risks must be taken into account. Extremely high APY usually means that the risks undertaken are correspondingly increased, and participants should decide on the scale of their investment based on their risk tolerance.

## Key Points of Actual Experience

There is indeed no difficulty in operation - download the wallet application, complete the exchange conversion, and then basically no daily maintenance is required. Daily rewards will accumulate automatically, and the increase in earnings is clearly visible.

The most important thing is to confirm that you truly understand the mechanism differences between USDD and sUSDD: the basic USDD itself does not generate any yield, and the yield is entirely derived from the APY portion of sUSDD and the incentive reward pool; the incentive reward pool is time-limited, and once the period ends, the yield will return to the baseline APY level.

## Summary

The core logic of this type of strategy is: exchanging stablecoin for stablecoin, to obtain additional returns through the built-in yield mechanism and time-limited incentives of the protocol. The threshold of 100 USDT is indeed very low, and a 30-day cycle is relatively easy to plan. However, in the end, any DeFi financial management requires a basic understanding of the product mechanism, rather than blindly following trends. If your idle stablecoin scale is above a few thousand yuan, obtaining additional returns through such incentive cycles is indeed meaningful from an ROI perspective.