Stablecoins are a part of the crypto market that all of us can no longer ignore today. In fact, we shouldn’t want that at all. Stablecoins offer crypto investors certain advantages that have become indispensable. Think of the stability of the crypto coins and the ease with which investors from outside can enter the world of crypto. However, there is another major advantage that comes with using stablecoins; yield.
What is Yield?
There are a number of different types of stablecoins on the market right now. Most are centralized projects with a token whose value is pegged to the US dollar. Some examples are the well-known Tether (USDT) and USD Coin (USDC). Of course, there are also decentralized stablecoins. Examples of this are DAI and DUCA.
Stablecoins are fundamentally much less volatile than cryptocurrencies such as bitcoin (BTC) and ethereum (ETH). otherwise they would obviously not be stablecoins either. Especially during periods when the market is going down, as is the case now, the value of this stability really comes into its own.
In addition, some stablecoins yield offer. Yield is actually simply the fact that you can earn an annual interest by holding stablecoins. On the one hand, holding stablecoins during a bear market means you have a very low risk, but on the other hand you can earn a nice pocket money on this.
How does DUCA yield work?
DUCA is a new stablecoin founded by a Dutch company. DUCA’s absolute goal is to become a safe haven for investors all over the world. DUCA is decentralized, so there is no central entity at the helm of the project, and users do not have to lock their DUCA into staking contracts to earn returns.
The amount of this return is determined by an algorithm. This naturally makes the decentralized aspect of DUCA even stronger and also ensures that small investors cannot be trampled underfoot by large parties.
All in all, the yield on DUCA can reach well into the double digits per year. Combine that with the fact that the value of DUCA is, and will remain, extremely stable and protected against inflation and you have a safe asset to keep your money in for better or for worse.
