Friday, June 9, 2023
HomeEthereumHow do stablecoins make money? ELI5

How do stablecoins make money? ELI5

Hi everyone!

Does anyone know how stablecoin issuers like Circle, Tether and MakerDAO make money? It’s all a bit unclear to me and after recent events I have started to do more due diligence about crypto products. Some of them are really unclear or I’m just stupid.

Anyways saw this picture on Twitter.

And it made me think – where are the interest rates/margins gained from? From decentralised lending platforms like Aave or from exchanges with lending? Or do they lend USDT/USDC/BUSD to institutions?

Thanks to whoever helps me understand and have a good Sunday!



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