How to Earn Money with Stablecoins in DeFi: Why KeyTether Is the Gateway to More Profitable Finance

Stablecoins have been on everyone’s lips in recent months due to their boom in popularity. In many countries, they are a lifeline to escape inflation or government pressures, and to send remittances to family. In developed countries, on the other hand, they work as “digital dollars” that save time and costs in international transfers .

If you are a freelancer and get paid in crypto, you’ve probably been paid in USDT or USDC, the most widely used stablecoins in the world . Did you know that you can invest them and achieve annual returns of up to 25% with low risk?

If you want your stablecoins to generate passive income, keep reading: you will learn how to earn money with stablecoins in DeFi and how KeyTether is the key that opens the door to this world of profitable possibilities.

The Growth of Stablecoins in 2025: Bigger Than Visa and Faster Than Mastercard

In 2025, stablecoins will surpass for the second year in a row the total transaction volume of leading gateways like Visa and Mastercard. It’s no coincidence: they are fast, cheap, and operate 24/7 without borders . Clearly, companies and individuals are tired of waiting days for money to arrive while paying more than USD 60 just in fees.

Likewise, more and more large institutions are flirting with the idea of issuing their own “digital currency” for their ecosystems. A clear signal that this is serious.

Simply put: stablecoins are the bridge between decentralized finance (DeFi) and traditional finance (TradFi). They take the best of both worlds: the stability of the dollar plus the speed and openness of the blockchain.

The topic is already on the public agenda: regulators and the U.S. Treasury are discussing frameworks and rules. When regulators look this closely at something, it’s because it has real weight in the economy.

And what about DeFi? Many people have heard of “crypto,” but few truly know DeFi. Think about lending money, investing, sending funds to a client, or receiving payment but without involving a financial institution — sounds incredible, right? And how is this possible in the DeFi world? Through smart contracts stored on a public blockchain.

Smart contracts are programs that live on the blockchain. They run automatically when someone or another app sends a transaction that meets their conditions. They don’t require human approval: they enforce the coded rules and always deliver the same result for everyone. Some depend on oracles for external data, and certain contracts can be upgraded via governance or admin keys; that’s why it’s wise to review audits and permissions.

DeFi vs CeFi: How to Earn Money with Stablecoins in 2025

Earning money with stablecoins is not exclusive to DeFi. You can also do it on centralized platforms (CeFi) such as Binance, Kraken, or Coinbase. But the game changes for the following reasons:

In Centralized Finance (CeFi):

• Your valuable cryptocurrencies and personal data are held in custody by the platform you use — meaning you don’t own the keys.
• If the platform is hacked or goes bankrupt, your crypto and your data could be seriously compromised. A delicate matter since we’ve already seen cases of identity theft, phishing emails, and thousands of accounts drained.

In Decentralized Finance (DeFi):

• You are responsible for your private key and seed phrase. The public key is the one you share.
• You don’t compromise your personal data because it’s simply not required. It’s pseudonymous.
• And the best part? Conservative-yield opportunities can go up to 15% on safe and audited platforms. Of course, higher yields exist but involve higher risk, so we won’t consider them here.

So if you choose to explore the opportunities DeFi has to offer, keep reading: we’ve scoured the web to bring you the best of this ecosystem that says goodbye to banks.

How to Earn Money with Stablecoins in DeFi in 2025?

If you are wondering how to earn money with stablecoins in DeFi, there are both “passive” paths and others that require more knowledge and involvement. Here are the most common methods, with pros, cons, and clear examples.

1) Stablecoin Staking

Staking consists of locking cryptocurrencies to validate a network in exchange for rewards. However, when we talk about Stablecoin Staking, it is more like a deposit or savings account in protocols that pay yield. There are staking options with or without lock-up, with the first ones offering higher annual yields (APY). Earnings from Stablecoin Staking come from the interest paid by borrowers, protocol revenue sharing, or returns from T-Bills.

Risks in this method include the stablecoin losing value and depegging below US$1, as well as smart contract failures — the program may have bugs or be hacked. That’s why it is recommended to use solid stablecoins with high liquidity and market capitalization, as well as investing in recognized and audited protocols. The yield range in this passive investment method is typically 3 to 15% APY.

As mentioned before, a higher APY usually implies locking assets for a longer period or engaging in riskier strategies.

2) Stablecoin Lending

Stablecoin lending basically means depositing your stablecoins in a lending market. Other users borrow them by leaving collateral and paying interest. Think of it as a “money rental building.” You leave your USDT or USDC at the reception desk. The borrower leaves collateral worth more than what they borrow. If they don’t repay, the system sells the collateral and you collect your interest.

Earnings come from the interest borrowers pay. The rate increases when demand is high or when the protocol offers incentives. Key risks in this strategy include smart contract bugs that make it vulnerable to hackers, failures in price oracles that cause late liquidations, and potential losses.

To reduce risks, use well-known and audited protocols, don’t put all your stablecoins in one platform, avoid chasing suspiciously high rates, and check the Total Value Locked (TVL).

The typical APY range for this method is 3 to 10 percent. It can be higher during demand spikes or when incentives are active.

3) Providing Liquidity (LP) in Stablecoin Pools

To invest in this method, you usually deposit two stablecoins (for example, USDT/USDC) into a decentralized exchange or AMM. The ratio of each stablecoin depends on price and range. When you invest, you become a liquidity provider and, as proof, you receive an LP token or an NFT. Your crypto is added to a pool of two assets where other investors trade and pay a fee every time they swap.

The key risks? Smart contract failures and impermanent loss if one stablecoin loses its peg to the dollar or if there are relative value changes.

In this method, yields can range from 4 to 15% APY annually.

4) Stablecoin Yield Farming: Squeezing the Most Out of Your Coins

Yield farming means depositing your stablecoins into a liquidity pool inside a protocol. By doing this, you become a liquidity provider and get a “deposit receipt” certifying your position. Yield farming’s trick is that you can then stake that receipt in the protocol’s farm to earn extra rewards.

The most important risk here is impermanent loss, which means if the relative price of assets in the pool changes, you end up with less of the “winning” asset than if you had just held it in your wallet. In stablecoin pools, this risk is very low. Another risk is smart contract failure due to coding errors, leaving funds vulnerable to permanent theft.

And how much can you earn with Stablecoin Yield Farming? Returns usually range from 8% to 25% APY with incentives; they can be lower during quieter market periods.

As we can see, yields with stablecoins in DeFi are as attractive — or even more — than what you can find in CeFi.

Below you will find a short list of some platforms where you can invest your stablecoins with different risk levels:

• Aave v3 and Compound v3: stablecoin lending markets with interest paid by collateralized borrowers.
• Uniswap v3 and Curve Finance: stablecoin liquidity pools with trading fees.
• Frax sFRAX : on-chain yield-bearing stablecoin, usually without lock-up.
• Yearn and Convex: optimizers that reinvest fees and incentives to improve returns.
• Spark and Morpho: alternatives that optimize lending markets for better rates.
• Molecula : platform focused on stablecoin yields, with external audits and security checks.

We know you are excited to grow your stablecoins, but keep in mind that all investments involve risk. Start with small amounts and diversify.

KeyTether is your gateway to opportunities: how to earn money with stablecoins in DeFi without headaches

Now that you know there are solid ways to earn passive income with your stablecoins, do not let them “sleep” in the wallet like your uncle after lunch. To start earning money with stablecoins in DeFi, the basic flow is this:

1) Create or use your Web3 wallet

A Web3 wallet is an application that stores your keys and lets you move your crypto privately. It also connects to decentralized finance apps, known as dApps.

The KeyTether wallet is ideal as a gateway into DeFi because:

• It is non-custodial.
• It is anonymous, which means no names, emails, photos, or ID required (No KYC).
• You do not need to preload TRX since fees are deducted in USDT.
• Transactions complete almost instantly.
• The KeyTether crypto card works with Apple Pay and Google Pay.

The best part is that it runs on the TRON network (TRC-20), which agreed in late August to reduce fees by 60%. And to make it even sweeter, KeyTether cuts that network fee roughly in half. As you can see, it is a perfect wallet for everyday use, whether you are buying a flight to Australia or paying for that tasty chocolate cake and coffee at Starbucks.

2) Fund your wallet with USDT TRC20

Move funds from an exchange, P2P market, or a swap aggregator, then send USDT TRC20 to your address. With KeyTether, sending is fast and cost-optimized because the platform benefits from TRON’s fee reduction and its own efficiency layer.

3) Connect to the DeFi protocols or dApps you like

Enter the protocols you chose, whether lending, stablecoin “staking,” or liquidity pools, and click “Connect wallet.” Start with small amounts. Review audits, TVL, reviews, and docs. Follow all our tips for a smooth start and, if you can, research a bit more. There is nothing better than an informed decision.

4) Manage risk and costs

If possible, diversify across several stablecoins and protocols, monitor APY since it can change with demand, and keep your seed phrase safe. If you can, use a hardware wallet. Avoid chasing impossible yields. If something promises 300% plus on stablecoins, chances are the payout is in a token no one will buy, which is like having millions in Monopoly money.

With KeyTether you get the “DeFi entry plus real-world spending” combo. You move USDT TRC20 with low fees and, if needed, you pay with your card. That way you do not lock everything in protocols. You keep a healthy balance between yield and daily liquidity.

To start earning money with stablecoins in DeFi choose your gateway wisely

Decentralized finance is redefining saving and investing, from prudent 5–15% APY approaches to more active options like liquidity provision. To get in without friction, KeyTether works as your bridge: non-custodial wallet focused on USDT TRC20, no KYC, optimized fees without TRX, and a crypto card to spend whenever you want.

Start simple. Create your wallet, fund it with an amount you feel comfortable using, connect to a trustworthy protocol, and measure results.

And if a friend asks how to earn money with stablecoins in DeFi, tell them there is a buffet of options, and the key is to enter with a wallet that simplifies your day, not one that complicates it.

2025-09-19 13:50:30