Best Yield-Bearing Stablecoins for Crypto Passive Income in 2025: sDAI, USDe, and Newcomers Compared
Stablecoins aren’t just for sideline parking anymore. In 2025, yield-bearing stablecoins have exploded into the spotlight, transforming the way crypto investors earn passive income. With the total market cap for these coins soaring by 45% in the first half of 2025 to $12.4 billion, it’s clear: DeFi’s new frontier is all about earning yield while keeping your capital steady.
But not all yield-bearing stables are created equal. The best contenders combine robust technology, sustainable yield mechanisms, and deep DeFi integrations. Let’s break down sDAI (Savings DAI), USDe (Ethena Labs), vyUSD (Voltz Yield USD), and USDY (Ondo Finance): the four power players for crypto passive income in 2025.
The Rise of Yield-Bearing Stablecoins: Why 2025 Is Different
Gone are the days when stablecoins simply tracked the dollar with zero upside. Today’s top stablecoins offer dynamic yields, some rebasing, some appreciating in price, giving investors a way to beat TradFi savings accounts while minimizing exposure to crypto volatility.
sDAI, USDe, vyUSD, and USDY each represent a unique approach to yield generation:
- sDAI: Earns from MakerDAO’s DSR, liquid and battle-tested.
- USDe: Synthetic dollar powered by delta-neutral strategies and staking rewards.
- vyUSD: Newcomer leveraging Voltz protocol for on-chain fixed-rate yield exposure.
- USDY: Tokenized U. S. Treasuries with steady, transparent returns.
sDAI (Savings DAI): DeFi’s Liquidity King at $1.21
If you’re looking for a blend of safety and flexibility, sDAI is still the gold standard. Generated by depositing DAI into MakerDAO’s DSR contract, sDAI lets you earn a variable yield without sacrificing liquidity or composability across DeFi protocols. As of November 18th, sDAI trades at exactly $1.21, reflecting accrued interest over time, a visual testament to its growing value.
The annualized yield hovers around 3.25%, but its real superpower is utility: sDAI is accepted as collateral across major lending markets and can be swapped instantly without forfeiting your earned interest.
USDe (Ethena Labs): High-Octane Yields at $1.002, But Know Your Risk!
If you crave higher APYs, and can stomach more complexity provides USDe is your ticket to double-digit returns. Priced at $1.002, Ethena Labs’ USDe uses delta-neutral hedging: it balances spot buys with perpetual shorts to harvest funding rates while keeping its peg steady. Stake your USDe for sUSDe and you could be looking at yields up to 10.86% APY as of August 2025.
This innovative approach means juicier yields, but also increased risk if market volatility spikes or derivatives markets get squeezed. Still, with billions locked on platforms like Pendle and deep integration across DeFi primitives, USDe has cemented itself as a core player for adventurous passive income seekers.
| Stablecoin | Current Price (Nov ’25) | Main Yield Source | Annualized Yield (%) |
|---|---|---|---|
| sDAI (Savings DAI) | $1.21 | Dai Savings Rate (DSR) | 3.25% |
| USDe (Ethena Labs) | $1.002 | Synthetic hedging and staking rewards | Up to 10.86% |
| vyUSD (Voltz Yield USD) | – | Pooled on-chain fixed rate swaps* | TBD* |
| USDY (Ondo Finance) | – | Treasury-backed appreciation | Around 4.25% |
*vyUSD launched Q4’25; rates expected soon based on Voltz protocol pools.
The Newcomers: vyUSD and USDY Step Into the Spotlight
The landscape isn’t just about established names anymore! vyUSD from Voltz Protocol is pushing boundaries by letting users gain exposure to fixed-rate yields through decentralized interest rate swaps, a game-changer for those seeking predictable returns without centralized risk bottlenecks.
vyUSD is still in its early innings, but the buzz is real. By leveraging Voltz’s on-chain swap pools, vyUSD aims to offer transparent, fixed APYs, something DeFi has struggled to deliver at scale. While current rates are still rolling out, expect vyUSD to attract both risk-managed DeFi natives and institutions looking for clarity in their yield projections. Watch this space as more liquidity pours in and fixed-yield benchmarks emerge!
Meanwhile, USDY from Ondo Finance is winning fans among conservative investors who want exposure to U. S. Treasuries without leaving the crypto ecosystem. Instead of rebasing or staking games, USDY’s value appreciates as the underlying Treasuries accrue interest, think of it as a digital savings bond with on-chain liquidity. With an annualized yield of 4.25%, USDY offers a sweet spot between TradFi stability and DeFi accessibility.
Yield-Bearing Stablecoins in 2025: Risk, Reward and Real-World Use Cases
So how do you choose? Start by mapping your risk appetite and cash flow goals:
- sDAI: Best for those prioritizing composability and steady returns across DeFi platforms.
- USDe: For yield chasers who understand derivatives and can monitor protocol health.
- vyUSD: The pick for fixed-income strategists seeking predictable rates without TradFi gatekeepers.
- USDY: Ideal for capital preservation with a crypto-native twist on U. S. -backed security.
The real magic happens when these stablecoins are woven into larger strategies: providing collateral in lending markets, stacking yields via protocols like Pendle or Yearn, or simply parking idle funds for compounding returns. The choice isn’t binary; many investors blend sDAI’s flexibility with USDe’s juiced APYs or anchor their portfolios with USDY’s steady appreciation.
2025 Price Check: What’s Next For Stablecoin Yields?
The numbers don’t lie: on November 18th, sDAI sits at $1.21, USDe at $1.002. These prices reflect not just dollar-pegging but also accrued value from ongoing yields, a visual reminder that passive income can be both safe and dynamic in DeFi. As vyUSD finds its footing and USDY continues onboarding TradFi capital on-chain, expect competition (and innovation) to drive yields further while protocols race to minimize risk.
The bottom line? Yield-bearing stablecoins are no longer experimental, they’re foundational tools for building resilient crypto portfolios in 2025 and beyond. Whether you’re optimizing every basis point or just seeking a smarter way to park dollars on-chain, these four coins offer distinct flavors for every risk profile.
If you want deeper breakdowns of each protocol’s mechanics, or step-by-step guides on maximizing your stablecoin yields, check out our deep dives here: Best Yield-Bearing Stablecoins for Passive Income 2025.
