Fortunately, there are many projects in the crypto world designed to help you with this. They form the so-called DeFi sector, thriving on almost every more or less known blockchain, let alone Solana. However, too many options create a problem of choice. Many projects in the highly mutable crypto world turn out to be rugs and scams, and even some decent projects can also be risky for your assets.
Today, we will talk about best stablecoins yield strategies on Solana. Stablecoins have such a name for a reason and bring a grain of stability to the seething ocean of crypto finance. They provide an opportunity to earn yield with minimal volatility. Solana DeFi projects, which we will recommend in this article, will help you manage risks and choose the most suitable strategy for yourself. Each of us has our own ideas about risk. Someone with a slowly but surely approach will agree to a peaceful 5% yield while someone fiery and adventurous will choose the risky 20%.
Stablecoins basics: what is it, and how do they generate yield?
According to Wikipedia, a stablecoin is a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset, which is either fiat money, exchange-traded commodities (such as precious metals or industrial metals), or another cryptocurrency.
In simple terms, the price of such coins does not jump like crazy but stays at a level of, for example, 1 US dollar, despite the bullish or bearish sentiments of the market. Yes, anything can happen in our crazy world, and sometimes stable coins can depeg, but this is not comparable to the volatility of other crypto assets. Such stability of stable coins makes them ideal for savings, transactions, and, of course, earning yield. In addition, stablecoins have helped to onboard the billion users in crypto!
Solana's most famous stablecoins are $USDC and $USDT. New stablecoins are also emerging, such as $PYUSD, $USDS, and $sUSD (the latter is called a yield-bearing stablecoin, ie backed by US Treasury bills, and is developed by Solayer).
There are six main ways stablecoins generate yield: lending, liquidity provisioning, perpetual futures funding, using hedge funds, yield aggregation, and yield trading. In each of these categories, there are Solana DeFi products that will help you implement your strategy, and we'll take a look at them now.
DeFi protocols for stablecoins yield on Solana 2025
Lending
Lending platforms allow you to lend your stablecoins and earn interest from borrowers. In this case, the rates depend on the supply and demand ratio. You can lend your stablecoins on Solana with Kamino Finance, Marginfi, Loopscale, DefiTuna, and Save (formerly Solend) platforms.
Liquidity provisioning
Liquidity provisioning generates yield from liquidity pool fees. You put your stablecoins into a liquidity pool, and when your pair is swapped, you earn its trading fees. Such LP protocols as Kamino Finance, Meteora, Orca, Perena, Raydium, and Stabble will help you do this on Solana.
Perpetual futures funding
In this case, you use your stablecoins to fund certain positions and earn yield not only from trading fees but also from funding rates and liquidation fees. For such manipulations on Solana, you can use Adrena, Drift, Flash.Trade, and Jupiter.
Using hedge funds
Here, you can minimize the risk coming from the asset you are funding (the so-called impermanent loss) by shorting this asset. Hedge fund protocols use delta-neutral positions, arbitrage, and synthetic asset strategies, which make them less risky than previous options. Among such protocols on Solana, Elemental, Gauntlet, Synatra, Neutral Trade, Vectis stand out.
Yield aggregation
With this approach, you get access to different sources of yield and trust the platform to auto-compound and reallocate your funds across them. Carrot and Lulo DeFi yield aggregators on Solana are perfect for this purpose.
Yield trading
It means generating income not from the stablecoins themselves but from your productive yield assets. For example, if you have lent your stablecoins and are receiving income from this, your lending position becomes a productive yield asset. Also, it can be yield-bearing tokens, etc. Yield trading protocols give users the opportunity to exchange their productive yield assets for a fixed return or increasing of their yield. Among such protocols are Exponent Finance, RateX, Sandglass.
Risk assessment when choosing a strategy and platform
We all have one goal: to get maximum income (APY) with minimum risk. This is what you should be guided by when choosing stablecoins yield strategies on Solana 2025. Keep in mind that high yields almost always mean high risks, and these risks come in different types.
APY rate risk is not a risk in the classical sense, but you should understand that the APY rate can fluctuate over time and is never guaranteed. Typically, APY rates rise during bullish sentiment: nobody wants to sell their assets, so the demand for lending increases. Crypto winter makes APY much more modest, so you may choose low-risk options and avoid new protocols that have not been tested during several cycles.
Counterparty risk is due to the peculiarities of the protocol's governance and is related to the risk of centralization. Transparency of processes is a good sign, so don't be lazy to study the project documentation before investing your funds anywhere.
Depeg risk lies in the level of stability of the stablecoin itself. As we wrote above, even a stablecoin can depeg and lose value. Especially if it is a little-known coin built on an algorithmic-only model.
Liquidity risk is determined by the possibility of exiting positions without slippage. This risk is lower if you use the stablecoins themselves to generate yield and higher if you purchase a platform token and use it.
Platform risk includes the security of the protocol itself, the presence of bugs and hacking opportunities in smart contracts. To assess its degree, you should pay attention to the presence of audits conducted by reputable security companies, such as Certora and Kudelski. And of course, it is worth looking at the history of the platform, whether it had security problems in the past. In this case, old proven protocols will be preferable to new and young ones, but this is only a hint, not a panacea.
Market risk includes the notorious impermanent loss when using the liquidity provisioning method and funding rate fluctuations in perpetual futures funding. Hedge Funds strategies can be a salvation from it, however, these protocols and processes are new and poorly researched, which makes them less reliable for other types of risk.
It is worth understanding that risk can be useful in reasonable doses and yet fortune favors the brave.
Choosing a strategy for optimizing your stablecoins yield
Based on the above, we can evaluate each of the methods of generating yield on a particular protocol by the ratio of profitability and risk.
So, for those who like maximum security, you can choose lending on Kamino, Save, MarginFi, liquidity provisioning on Kamino, Meteora, Orca, Raydium, and perpetual futures funding on Drift. This approach will provide low APY with low risks.
If you are feeling brave, turn to high-profit and high-risk strategies of yield trading on RateX and Sandglass, or try using hedge funds such as Neutral Trade, Synatra, Gauntlet, and Vectis.
If you are looking for balance and a happy medium, you can focus on perpetual futures funding with Jupiter and yield trading with Exponent.
Also, you can balance your strategy by combining high-risk ventures with low-risk ones, such as lending your stable coins with Kamino, deploying into Carrot or Lulo for yield aggregation, using hedge funds with Neutral Trade, and engaging in perpetual futures funding with Jupiter. The upside of this strategy is that you are diversifying and not risking everything on one endeavor. The downside is that you have to keep your finger on the pulse and monitor all the platforms involved simultaneously.
You need to monitor them to be prepared for all sorts of changes. Do not forget that we are talking about crypto, where everything changes very quickly. The above strategies are just an example and not an action guide, so process this information, do your own research, and only then invest your money somewhere. Hackers.tools team wishes you good luck, high APY, and low risks!