What is DeFi yield on stablecoins?
DeFi yield on stablecoins involves depositing stablecoins (USDC, DAI) into lending protocols like Aave or Morpho. Borrowers pay interest to use your funds, and you receive a proportional share. Rates typically range between 3% and 8% APY.
Is DeFi yield guaranteed?
No, DeFi yield is not guaranteed. APY is variable and depends on supply and demand. Protocols like Aave have over 4 years of track record without major incidents.
What's the difference between Aave and a savings account?
A traditional savings account offers around 0.5% APY guaranteed by the bank. Aave offers around 5% variable APY, with smart contract risk. Aave has been audited over 30 times and manages over $40 billion, but zero risk doesn't exist in DeFi.
Can I lose my capital?
The risk exists: smart contract bugs, stablecoin depeg, or protocol exploits. These risks are mitigated by using audited protocols and diversified stablecoins.
How does DeFi lending work?
You deposit your stablecoins into a lending pool. Borrowers deposit collateral (e.g., ETH) and borrow your stablecoins while paying interest. The collateral is automatically liquidated if its value drops too much.
What is Morpho Blue?
Morpho Blue creates isolated markets for better capital efficiency. Unlike Aave which pools risks together, Morpho isolates each market, which often allows for higher rates.
Is DeFi yield taxed?
Tax treatment varies by country. In most jurisdictions, DeFi yields are considered taxable income or capital gains. Consult a tax professional for your specific situation.
Do I need a wallet to use DeFi?
Yes, a non-custodial wallet is required. Fibo simplifies everything: no seed phrase, deposit in 2 clicks, best protocols integrated directly in the app.
What's the difference between lending and staking?
Lending involves lending stablecoins to borrowers via a protocol. Staking involves locking crypto (ETH, SOL) to secure a blockchain network.
How does Fibo simplify DeFi yield?
Fibo integrates the best DeFi protocols directly in the app. Choose a protocol, deposit in 2 clicks, automatic yield. No seed phrase, no gas fees to manage.