Stablecoin Investment in 2024: Smooth Sailing or Risky Venture?

Camelia Enacache — Web3 expert and Tangem community member — discusses the potential for stablecoin investments in 2024 and which platforms hold the best promise in the Tangem Expert Column.


Investing in stablecoins is a viable avenue that is considerably less risky in the cryptocurrency space is investing in stablecoins. These digital assets are created to uphold a stable value by being tied to an external traditional asset such as fiat currency or gold. The primary objective of stablecoins is to mitigate the price volatility typically associated with cryptocurrencies like Bitcoin, rendering them more appropriate for daily transactions. Investing in stablecoins is among the best options for those who prefer a steadier, more predictable portfolio. Web3 is new and full of potential, but keeping up with its rapid developments can seem daunting. In this article, you’ll learn about which platforms can help you invest in stablecoins.


What does stablecoin investing mean?

Investing in stablecoins involves purchasing and staking the stablecoin on exchanges, platforms, or crypto wallets that support it. For example, once you buy a stablecoin such as DAI or OUSD, you can earn interest through DeFi protocols by participating in lending and borrowing activities or simply holding it. Overall, investing in stablecoins can provide stability and liquidity to your cryptocurrency portfolio while still allowing you to partake in the broader ecosystem.

Types of stablecoin investments

Stablecoin investments come in different forms, each with unique benefits and risks. Let's go over some common types of stablecoin investments.

  • Yield farming and staking

Some stablecoins, like DAI or USDC, can be used in DeFi protocols to earn rewards or interest. Investors can supply their stablecoins to liquidity pools or stake them in smart contracts to earn these rewards.

Learn more about Yield farming here. Staking is one of the most common investment strategies in the crypto space. If you're new to this concept, you can read our article on staking and how to stake in Tangem Wallet.

  • Lending and borrowing

Stablecoins can be used as collateral for lending and borrowing in DeFi platforms. You can earn interest by lending out your stablecoins to people who need them, or you can borrow other assets by using your stablecoins as collateral.

Investors can also deposit cryptocurrencies as collateral, which are then used to mint stablecoins. The collateralization ratio ensures stability and can vary depending on the specific protocol.


Each type of stablecoin investment comes with its own set of benefits and risks, so you must carefully assess your investment goals and risk tolerance before choosing a stablecoin investment strategy.


Top platforms and protocols for stablecoin investments in 2024

Here are some promising platforms and DeFi protocols for investing in stablecoins.

  1. DefiLama

DefiLlama is the largest TVL aggregator for DeFi (Decentralized Finance). Our data is fully open-source and maintained by a team of passionate individuals and contributors from hundreds of protocols. Our focus is on accurate data and transparent methodology.

Navigating through the wealth of information can be overwhelming. That's why DefiLama —with its wealth of information — is a reliable source for research and analysis to make informed decisions. Visit DefiLlama for comprehensive insights. 

  1. SparkFi / Spark DAO (sDAI)

Spark Fi is a decentralized finance (DeFi) platform developed to enhance the DAI ecosystem by offering various financial services. As a DAI-focused money market protocol, Spark Fi lets users deposit volatile assets like ETH and borrow stable DAI.

Within this ecosystem, Savings Dai (sDAI) emerges as a yield-bearing stablecoin, representing DAI within the Dai Savings Rate (DSR) module. This module distributes earnings from the Maker protocol to DAI holders, allowing them the flexibility to transfer, stake, lend, and use DAI as desired. Notably, the exchange between DAI and sDAI doesn't require a decentralized exchange (DEX) but can be done through depositing and withdrawing from the DSR module. 

Interaction with sDAI is facilitated through the SparkLend front end. DAI has persisted substantially in the crypto sphere, which speaks to its longevity and relevance.

  1. Thorswap

Thorchain is a decentralized network that helps you settle cryptocurrencies like Bitcoin, Ethereum, and more. It's all secured by its native coin — RUNE. Thorchain lets you easily swap assets between different chains, earn rewards for depositing assets, and allow for secure communication between chains. 

One way to access Thorchain is through Thorswap —  a decentralized exchange (DEX) where you can trade thousands of tokens across blockchains without giving up custody of your assets. It also offers tools for yield farming and analytics. 

Savers Vault

Savers Vault — a feature of Thorswap — lets you earn passive income by depositing your idle assets without worrying about losing them or being exposed to certain risks. The income comes from the rewards generated by the liquidity pools in Thorchain. 


When individuals trade assets through Thorchain, you get a share of the rewards if you provide liquidity. Here’s how THORSwap Earn works: Your BTC enters the liquidity pool to create a synthetic BTC, which can be redeemed 1-to-1 for native BTC. The BTC is exchanged for RUNE. Then, the acquired RUNE is placed in the pool to generate the synthetic BTC. The liquidity pool fully backs this synthetic BTCl and can be redeemed 1-to-1. It represents a portion of the liquidity pool and earns a portion of the yield generated by the pool from swaps. 


By engaging in just one side of the trade, RUNE liquidity providers take on additional price risk to RUNE and ensure the redemption of the synthetic assets.  When you put your assets into a Savers Vault, you're given a synthetic version of the original coin, not the coin itself. These synthetic assets, called "Synths," represent the same value as the original asset, like Bitcoin or Ethereum. 

Synths vs wrapped tokens

Unlike wrapped assets, THORChain Synths are backed by THORChain Liquidity Pools, which contain a mix of the original asset and $RUNE. This setup ensures that the synth's price always matches the native token's price, maintaining a direct correlation between the Synth and the assets being secured.


Currently, you can earn these annual percentage rates (APRs) on stablecoins in a Savers Vault: 7.91% for USDC on the ETH chain, 13.8% for USDT (also on the ETH chain), and 7.32% for USDC on the AVAX chain. These rates can change and are based on recent performance. The yield varies depending on swap fees, block rewards, pool depth, and incentives. While past performance helps estimate future results, it doesn't guarantee them. 


  1. Origin Protocol (OUSD) 

Origin Protocol represents a marketplace at the forefront of the sharing economy, facilitating transactions between individuals for fractional-use goods and services such as car-sharing and home-sharing. 

Origin leverages the Ethereum blockchain and Interplanetary File System (IPFS). This decentralized model empowers users to engage in commerce without the reliance on traditional intermediaries.  Among its offerings is the Origin Dollar (OUSD), a stablecoin designed to streamline decentralized finance (DeFi) by eliminating the necessity for staking or lock-ups. Unlike the typical 28-day waiting period for unstaking tokens like (Polkadot) DOT, OUSD offers immediate liquidity, which is crucial during emergencies. 

Origin USD (OUSD)

Introduced in September 2020, OUSD has undergone extensive testing and substantial circulation. It can be securely held in any self-custody wallet compatible with the Ethereum chain, bypassing the usual requisites associated with staking or yield farming. Engineered to deliver better DeFi yields directly to users' wallets, OUSD promises optimal returns available on Ethereum or USD. 

Simply deposit OUSD into your hardware wallet, and your balance increases over time. Governance is entirely decentralized, and the current yield sources and allocations can be viewed at on their homepage.


A comprehensive guide to the yield generation process is available at OUSD's stability hinges on the strength of the stablecoins backing it. Any loss in the value of the underlying assets will consequently impact OUSD's value. Origin protocol mitigates this risk by evaluating each stablecoin before integration. Currently, OUSD is backed by USDT, USDC, and DAI. 


To embark on your OUSD journey, simply visit With a current 7-day trailing APY of 11.11% and no lock-up requirements, the appeal is clear. Your OUSD holdings retain their liquidity around the clock. 

Final thoughts

Decentralized finance is changing quickly, but SparkFi, Thorswap, and Origin are stable and innovative protocols that can help investors confidently grow their assets. They also help reduce risks, which is crucial in a secure financial future. If you have a Tangem wallet, you can easily link it to these apps via WalletConnect. This opens up new possibilities in DeFi. Remember that these platforms are just a few examples of what you can do with stablecoins. This article has provided some valuable insights and strategies for navigating this ecosystem. You can avoid getting "rekt" in the crypto community by avoiding pitfalls.


About the author

"Since 2016, I've explored various avenues, including masternodes, ICOs, cryptocurrency mining, and more. While experimenting with liquidity pools in 2021, I encountered the challenge of impermanent loss, which wasn't a pleasant experience. This led me to rethink my approach: why pursue a high Annual Percentage Rate (APR) when it often leads to losses? This shift in perspective has prompted me to reassess my investment strategies."


Camelia Enacache is passionate about cryptocurrencies, passive income, and Web3 education. As an expert in cryptocurrency investments since 2016, she enjoys diving into and discussing the latest topics related to DeFi and blockchain in general. Camelia is also an active Tangem community member, helping others new to Tangem Wallet and cryptocurrencies adapt quickly and thrive in our community.
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Disclaimer: The views and opinions expressed in this article are those of the author-contributor and do not necessarily reflect the official policy or position of Tangem. Any content provided by the contributor is of their opinion and should not be interpreted as investment advice. Tangem AG does not endorse or guarantee the accuracy of the information provided in this article. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions based on the content of this article.