USDC and USDT Yield Offers Rely on Six Different Payment Sources

USD Coin (USDC) and Tether (USDT) yield offers draw on six sources of payment, from fund portfolios to token incentives, leaving U.S. customers with different assets and risks behind similar quoted returns. Holding a payment stablecoin does not itself explain a return. USDC holders have no claim to interest earned on Circle’s reserves. A yield offer instead depends on a separate fund, account program, lending position or trading arrangement. Its terms determine both who pays and what the customer holds. The distinction matters when products display an annual percentage yield. A quoted rate may combine payments from more than one source, and those components can change for different reasons. The six routes below describe where the money comes from; they do not rank expected returns or safety.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to TokenPost.