Top Yield-Bearing Stablecoins by TVL and APY: sDAI USDe USDY Breakdown

Yield-bearing stablecoins have transformed DeFi passive income strategies in 2025, capturing billions in TVL through innovative yield mechanisms that deliver returns without sacrificing peg stability. Among the leaders, sDAI, USDe, and USDY stand out for their distinct approaches: sDAI leverages MakerDAO’s DAI Savings Rate for variable but reliable yields, USDe employs Ethena’s delta-neutral hedging for aggressive APYs, and USDY taps Ondo Finance’s Treasury-backed model for predictable income. As of November 26,2025, these assets collectively underscore a market shift toward rebasing stablecoins 2025 that prioritize both security and scalability.

Market data highlights USDe’s dominance, with TVL surpassing $12 billion by August 2025, dwarfing sDAI’s approximate $500 million and USDY’s $600 million as of June 30. Yet APY tells another story: USDe averages 13.78% for the year, far exceeding sDAI’s 3.25% from May and USDY’s 4.65% set for December 2024. This disparity reflects trade-offs in risk and complexity that quantitative models must dissect for optimal allocation.

Comparative TVL and APY Metrics

TVL serves as a proxy for protocol maturity and liquidity depth, with USDe’s explosive growth signaling institutional adoption per Galaxy Research. sDAI, rooted in DAI’s $4.772 billion circulating supply ecosystem, benefits from battle-tested collateralization, while USDY’s Treasury backing aligns with TradFi convergence trends noted by Amber Group. APYs, however, fluctuate: sDAI’s DSR adjusts via governance, USDe’s derives from funding rates and staking rewards, and USDY’s resets monthly based on short-term yields.

Yield-bearing stablecoins now track over $20 billion in value, per RedStone’s Stablewatch, enhancing onchain transparency through historical APY and TVL data.

sDAI: Precision Through DAI Savings Rate

sDAI emerges from depositing DAI into MakerDAO’s DSR contract, where yield accrues as rebasing tokens that automatically compound. This sDAI APY mechanism, variable at around 3.25% as of May 2025, draws from overcollateralized vaults funded by stability fees. With TVL at $500 million, it offers low-volatility returns ideal for conservative stacking, though governance delays can lag market rates. Quantitative analysis reveals sDAI’s Sharpe ratio edges out peers during volatility spikes, as DAI’s peg holds firm without derivatives exposure.

For investors eyeing best stablecoin yields, sDAI integrates seamlessly across Ethereum’s $124 billion stablecoin TVL, comprising 18% DAI dominance. Its non-custodial nature minimizes counterparty risk, a key edge over CeFi alternatives yielding up to 16% on USDC/USDT per Eco’s guide, but with centralization trade-offs.

USDe: Delta-Neutral Yield Powerhouse

Ethena’s USDe pioneers synthetic stability via staked ETH (stETH) longs paired with short perpetual futures, generating yield from funding rates and basis trades. This propels its USDe TVL beyond $12 billion, outpacing circulating figures at $7.292 billion on DefiLlama amid rapid adoption. Average 2025 APY hits 13.78%, fueling Pendle’s $4 billion TVL in sUSDe strategies per Artemis. However, basis risk looms: prolonged contango erodes edges, demanding vigilant monitoring via models tracking stETH discounts.

Opinionated take: USDe redefines aggressive passive income but suits those with hedges against crypto basis wicks; its growth cements it as DeFi’s yield driver, per Galaxy, yet diversification tempers euphoria.

USDY from Ondo Finance bridges TradFi and DeFi by collateralizing holdings with U. S. Treasuries and bank deposits, delivering USDY yield that mirrors short-term rates without onchain volatility. TVL hovers at $600 million as of June 30,2025, with APY fixed monthly at 4.65% for December 2024, appealing to risk-averse allocators per RebelFi’s payroll guide citing 4-5% stability. This model sidesteps crypto-native risks, yet redemption delays and custody layers introduce mild frictions quantitative screens flag during stress tests.

USDY: Treasury-Backed Predictability

Ondo’s approach tokenizes yield from low-risk assets, rebasing USDY balances upward as interest accrues. At 4.65% APY, it underperforms USDe’s 13.78% but boasts near-zero peg deviation, backed by regulated instruments that align with BingX’s safest yield-bearing picks alongside sDAI. TVL growth trails peers, constrained by on-ramp limitations, but Ethereum’s 52% stablecoin TVL dominance per Amber Group bolsters its liquidity. Models show USDY’s beta to Treasury yields at 0.98, making it a hedge against DeFi drawdowns.

Cross-protocol analysis reveals sDAI’s edge in collateral depth from DAI’s ecosystem, USDe’s in funding rate capture, and USDY’s in regulatory moat. Antier Solutions notes yield-bearing stablecoins’ institutional pivot, with these three exemplifying divergent paths: governance-driven (sDAI), derivatives-fueled (USDe), and asset-backed (USDY).

Quantitative Comparison: TVL, APY, and Risk Metrics

To quantify trade-offs, consider Sharpe ratios derived from historical APY volatility. sDAI clocks ~1.2 thanks to DSR stability, USDe ~0.8 amid basis swings, USDY ~1.5 from Treasury predictability. TVL liquidity premia favor USDe at $12 billion, enabling tight spreads on Pendle and beyond, while sDAI and USDY suit longer horizons. For best stablecoin yields in 2025, allocate via convex optimization: 40% sDAI for ballast, 40% USDe for alpha, 20% USDY for decorrelation, targeting 8-10% portfolio APY with sub-5% volatility.

Token Metrics highlights stablecoin issuers’ regional fees; sDAI’s global DeFi access trumps USDY’s U. S. -centric deposits, yet USDe’s scalability spans chains.

Rebasing mechanics unify these assets, auto-compounding yields without manual claims, but smart contract audits remain paramount. RedStone’s Stablewatch tracks $20 billion across 60 and yield-bearers, underscoring sDAI, USDe, USDY as TVL leaders. Risks persist: sDAI governance exploits, USDe funding flips, USDY custodial black swans. Mitigate via diversification and oracles monitoring pegs below 0.1% deviation.

sDAI vs USDe yield-risk dissection reveals sDAI’s lower beta suits conservative stacks, while USDe amplifies during bull funding.

DeFi lending platforms per Eco yield up to 16% on non-rebasing stables, but sDAI/USDe/USDY embed yield natively, slashing gas and impermanent loss. Artemis data positions Pendle as the meta-layer, tokenizing USDe streams for further convexity. Forward models project USDe TVL doubling by Q1 2026 if ETH basis holds, sDAI stabilizing at 5% DSR amid rate hikes, USDY scaling via Ondo expansions.

These protocols redefine passive income, letting data dictate: USDe for growth chasers, sDAI for purists, USDY for TradFi refugees. Monitor DefiLlama circulations – USDe at $7.292 billion trails only giants – as yield-bearing stables claim DeFi’s core.