Q&A ยท ChainRadar
Stablecoin yield risk guide
Stablecoin yield can be useful for idle funds, but it is not risk-free. APY should be compared with protocol quality, liquidity, withdrawal rules, and your own risk tolerance.
What to compare
- APY and whether it changes frequently.
- Total value locked, or TVL.
- Lock-up period and withdrawal speed.
- Protocol history and smart contract risk.
- Gas cost relative to the amount deposited.
Beginner rule
Do not choose a product only because it has the highest APY. For small balances, no-lock or exchange starter offers may be easier than complex DeFi strategies.