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Solana’s stablecoin ecosystem is a $14 billion market offering the best stablecoin yield options in crypto — from 4% Treasury-backed safety to 22%+ DeFi-native strategies across 15+ protocols. That’s up 3x from just $5 billion at the end of 2024, and the yield landscape has exploded along with it.
The problem? Figuring out which yield is real, which is incentive-driven, and which could lose you money requires hours of research across scattered dashboards.
I’ve tested most of these protocols and dug into the mechanics behind each yield source. Here’s the deal: not all stablecoin yields are created equal. A 20% APY from lending demand and a 20% APY from token incentives are fundamentally different products with different risk profiles.
This guide breaks down every major stablecoin yield option on Solana — tiered by risk level so you can match your strategy to your risk tolerance.
| Protocol | Type | Stablecoin APY | TVL | Risk | Lock Period |
|---|---|---|---|---|---|
| USDY (Ondo) | Treasury-backed | ~4.3% | $691M | Low | None |
| sUSD (Solayer) | Treasury-backed | ~4-5% | Growing | Low | None |
| Save | Lending | ~4% | $300M | Low-Med | None |
| Kamino (base) | Lending | ~4.4% | $2-3B | Low-Med | None |
| Lulo | Aggregator | Up to 7.7% | N/A | Low-Med | None |
| Exponent | Fixed-rate | 5-10% | $132M peak | Low-Med | Until maturity |
| PYUSD (Kamino) | Incentivized lending | ~9.2% | $1B+ on Solana | Medium | None |
| Perena USD* | Stableswap | 10-15% | Growing | Medium | None |
| Carrot | Aggregator | 9-20% | $29M | Medium | None |
| Drift | Trading/Lending | 5-15% | $170M+ | Medium | None |
| Kamino Prime | Optimized lending | 13-17% | Incl. above | Medium | None |
| Solstice eUSX | Delta-neutral vault | 8-14% | $300M | Medium | None |
| Hylo sHYUSD | Yield-bearing stable | 16-22% | $100M+ | Med-High | None |
| Marginfi | Lending | Up to 35% | $121M | High | None |
APYs are snapshots from February 2026 and fluctuate based on market conditions. Always verify current rates on-protocol.
Before depositing a single dollar, you need to understand three things:
This is the most important question. There are four main yield sources on Solana:
From my testing, lending-based yields are the most variable — they can spike to 20%+ during high leverage demand and drop to 2-3% when markets are quiet. Treasury yields are the most predictable but capped around 4-5%.
Here’s the real talk: if a protocol is paying 15%+ APY and you can’t clearly explain where that yield comes from, proceed with caution.
Sustainable yields come from lending demand, staking rewards, or real-world asset returns. Incentive-driven yields come from token emissions or marketing budgets — they can disappear overnight. PYUSD’s 18% APY on Kamino in late 2025 dropped to ~9% as PayPal reduced incentive spending.
Every yield option carries risk. The key ones:
Best for capital preservation. These yields come from US government bonds, not DeFi mechanics.
USDY is a tokenized note backed by US Treasuries and bank deposits, offering around 4.3% APY. The token appreciates in value over time rather than distributing yield — so $1,000 in USDY becomes worth more each day without any claiming or compounding needed.
Why it matters: USDY has $691M in TVL and represents the safest stablecoin yield on Solana. Ondo is also launching tokenized US stocks and ETFs on Solana in 2026, expanding the use case beyond just yield.
Best for: Large capital that needs to stay safe while earning more than a savings account.
Solayer’s sUSD is backed by US Treasury Bills via OpenEden, earning 4-5% APY with an added twist: Solayer’s restaking infrastructure generates additional yield from MEV activities on top of the base T-Bill return.
What sets it apart: Available across 8 blockchains via Wormhole. Minimum deposit of just $5. Uses Solana’s account model to reflect interest automatically.
Best for: Users who want Treasury-backed safety with cross-chain flexibility.
Established protocols with proven track records. Variable rates based on supply and demand.
Kamino is Solana’s largest lending protocol with $2-3 billion in TVL. Deposit USDC and earn a base rate of around 4.4% (30-day average), with KMNO token rewards on top.
Why it dominates: Kamino holds over 70% of all PYUSD in Solana DeFi. Gauntlet (institutional risk manager) curates the vaults. Chainlink Data Streams provide sub-second oracle updates. K-Lend V2 pulled in $200M in deposits within three weeks of launch.
The catch: Base rates are modest. The real action is in Kamino’s optimized strategies (Tier 3).
Best for: Conservative DeFi users who want blue-chip protocol safety.
Lulo automatically routes your stablecoins to the highest-yielding lending protocol — currently earning up to 7.65% APY on USDC via real-time compounding.
How it works: Connect your wallet, deposit USDC, and Lulo handles the rest. It integrates with Kamino, Drift, Save, and Marginfi. Three risk modes: Protect (conservative), Classic (balanced), and Boosted (higher yield, more protocol exposure).
Why I like it: Fee-free, no KYC, non-custodial. Recently launched an iOS app. It’s the simplest on-ramp to stablecoin yield on Solana.
Best for: Beginners who want optimized yields without manual protocol hopping.
Exponent lets you lock in a fixed yield (5-10% APY) regardless of what the market does. You buy “Income Tokens” at a discount — say $0.93 — and redeem them for $1.00 at maturity. The discount is your yield.
Current rates: BulkSOL at ~14.9% fixed, eUSX at ~7.7% fixed, with maturities ranging from weeks to months.
The tradeoff: Your capital is committed until the maturity date. You can sell early on the AMM, but the price depends on market conditions. Triple-audited by OtterSec, Certora, and Offside Labs.
Best for: Users who want predictable, guaranteed returns and are willing to lock capital.
One of Solana’s OG lending protocols with $300M TVL. Base USDC rate sits around 4% (30-day average), using a straightforward algorithmic rate model.
Honest assessment: Save is battle-tested but not the highest-yielding option. Rates can spike during market stress (high borrowing demand) but typically hover in single digits. Exponential DeFi rates it a “C” for risk — functional but not the strongest risk framework compared to Kamino.
Best for: Users who value simplicity and long track record over maximum yield.
Higher yields from optimized lending, stableswap LPs, incentive programs, and delta-neutral vaults.
Kamino’s managed vaults run optimized strategies earning 13-17% APY on USDC. The Steakhouse USDC vault (managed by Steakhouse Financial) and the USDC Prime vault both use automated lending strategies to capture higher rates.
How it works: These vaults actively manage positions across Kamino’s lending markets, chasing optimal utilization rates. Gauntlet monitors risk in real time.
The boost: PYUSD vaults on Kamino earn around 9.2% (down from a peak of 18%) with additional KMNO token rewards. Kamino Season 4 distributes 1.75M KMNO tokens weekly to PYUSD depositors.
Best for: Active DeFi users who want managed yield optimization.
Perena’s Numéraire AMM pools USDC, USDT, and PYUSD together, issuing USD — an appreciating LP token earning 10-15% APY*. The yield comes from an 80/20 split: 80% delta-neutral strategies and 20% over-collateralized lending.
The edge: Built by Solana Foundation and Jump Trading alumni. Backed by YZi Labs (Binance Labs), Borderless Capital, and SevenX. Running a “Petals” points program for early depositors.
Risk note: Delta-neutral strategies carry basis trade risk. If funding rates flip negative for an extended period, yields compress. The $2.1B+ in processed volume shows the infrastructure works, but USD* is newer than established lending protocols.
Best for: Users who want stablecoin diversification with solid yield and don’t mind newer protocols.
Carrot deposits USDC, USDT, or PYUSD across multiple lending protocols (Kamino, MarginFi, Save, Drift) and auto-rebalances to the highest rate. Base yield: 9-20% APY via the CRT receipt token.
Why it’s different: Zero fees (only a 0.1% redemption fee returned to the vault). Two audits (Sec3 and MadShield). Supports all three major Solana stablecoins.
The boost option: “Boost Loops” use leverage to push yields above 100% APY — but that’s a fundamentally different (and much riskier) product than the base vault.
Best for: Passive users who want automated multi-protocol yield without managing positions.
Solstice issues USX (1:1 stablecoin) and eUSX (yield-bearing version) backed by institutional-grade delta-neutral strategies. The YieldVault has delivered a trailing 12-month return of 11.8% with zero negative months since inception.
The credibility play: Backed by Deus X Capital ($1B digital asset firm). Strategy has a 3-year track record before going on-chain. $300M TVL across 24,000+ holders. Audited by Halborn. Fasanara Digital (institutional allocator) deployed capital in February 2026.
Risk note: USX experienced a temporary depeg to $0.10 in December 2025 due to thin DEX liquidity during the holidays. Collateral was unaffected and the peg restored, but it highlights secondary market liquidity risk.
Best for: Users seeking institutional-grade delta-neutral returns.
Drift combines perpetual futures trading with integrated lending. USDC lending earns 5-15% variable APY from trader borrowing demand, while vault strategies range from 10% to over 100% depending on complexity. Drift is one of the most feature-rich Solana perp DEXs — the lending yield you earn here comes directly from traders using its 40+ perpetual markets.
The DeFi play: Some users borrow USDC on Drift at 10% and lend on Kamino at 15% to capture the 5% spread. Drift v3 launched in December 2025 with 10x faster execution.
Best for: Active DeFi users who understand leverage markets and want to optimize across protocols.
Real yields, but require understanding the mechanics. Not for passive allocation.
Hylo is the breakout stablecoin protocol of 2025/2026. Deposit stablecoins to receive hyUSD, then stake it for sHYUSD earning 16-22% APY (peaks at 30-40% during high demand).
Where the yield comes from: This is the critical detail — Hylo’s yield comes from JitoSOL liquid staking rewards. When users mint xSOL (leveraged SOL exposure), their collateral generates staking yield that gets redirected to hyUSD holders. This isn’t token incentives — it’s real staking yield from Solana’s validator network.
Growth metrics: $100M+ TVL (from $0 in four months), $6M+ in annualized protocol fees, audited by OtterSec, and DeFi Development Corp (Nasdaq-listed) deployed treasury assets into the protocol.
The risks: Yield depends on demand for xSOL leverage. If no one wants leveraged SOL exposure, stablecoin yields compress. Smart contract is newer (launched 2025). LST depegging is a tail risk.
Best for: Experienced DeFi users who understand the yield source and want above-market stablecoin returns.
Marginfi offers the highest raw lending rates on Solana — USDC at up to 35% APY when utilization hits 86%.
Let’s be real: Those rates exist because Marginfi operates at extreme utilization. That’s great for yield, but it means your capital might not be instantly available during market stress. The protocol experienced a significant TVL event and has been rebuilding under new ownership (Project 0). TVL sits at $121M, down substantially from its peak.
Best for: Risk-tolerant users who understand utilization dynamics and don’t need instant liquidity.
PayPal’s PYUSD deserves its own section because the opportunity is unique but time-sensitive.
PYUSD has grown to $1B+ on Solana (up 224% since September 2025), driven almost entirely by incentive programs. Here’s what’s available:
The catch: These yields are partly incentive-driven. When PayPal previously reduced Solana incentives, PYUSD saw significant outflows. The draft CLARITY Act (January 2026) proposes banning yield for “holding payment stablecoins,” which could directly impact these programs.
My take: PYUSD yields are attractive right now, but treat them as a temporary opportunity rather than a long-term allocation. Enjoy the boosted rates while they last, but don’t assume they’ll stay at these levels.
Launched January 2026 with 90% backing from BlackRock’s BUIDL fund and 10% USDC. JupUSD doesn’t pay yield directly, but depositing into Jupiter Lend creates jlJupUSD — a yield-bearing receipt token composable across Jupiter’s suite (limit orders, DCA, perps).
Jupiter plans to convert $500-750M of USDC collateral into JupUSD, which would make it a major Solana stablecoin overnight.
Expected H1 2026. Western Union’s stablecoin on Solana, issued by Anchorage Digital Bank (US-regulated). The distribution angle is massive: 600,000+ agents in 200+ countries. Not a yield product itself, but once on-chain, USDPT can be deployed into any Solana DeFi protocol.
Every protocol listed here could potentially be exploited. Mitigate by diversifying across multiple protocols and checking audit status. Kamino, Exponent, Hylo, and Solstice have all been audited by reputable firms.
High-yielding lending protocols (especially Marginfi at 86% utilization) can delay withdrawals during market stress. If you need instant liquidity, stick to lower-utilization protocols or Treasury-backed options.
PYUSD yields and many points programs are subsidized. When incentives end, yields drop and capital flees. Build your strategy around sustainable yield sources, not temporary boosts.
The draft CLARITY Act could ban yield on payment stablecoins. PYUSD is most exposed, but any stablecoin earning yield could face future scrutiny. Treasury-backed tokens (USDY, sUSD) are likely the most regulation-resistant.
USX temporarily dropped to $0.10 in December 2025. Yield-bearing stablecoins with thin DEX liquidity can experience temporary depegs even when collateral is fine. Stick to stablecoins with deep liquidity or use protocols that offer direct redemption.
It depends on your risk tolerance. For safety, USDY offers ~4.3% backed by US Treasuries. For optimized DeFi returns, Kamino Prime vaults earn 13-17% on USDC. For the highest sustainable yields, Hylo’s sHYUSD delivers 16-22% from redirected staking rewards.
Right now, PYUSD earns higher yields due to active incentive programs — around 9.2% on Kamino versus 4.4% for base USDC. However, PYUSD yields are incentive-driven and could decrease. USDC yields are more sustainable because they come from organic borrowing demand.
No DeFi yield is completely safe. Risks include smart contract exploits, utilization-based withdrawal delays, and stablecoin depegging. Treasury-backed options (USDY, sUSD) carry the least risk. Lending protocols like Kamino are well-audited but still expose you to DeFi risks. Never deposit more than you can afford to lose.
For the simplest experience, try Lulo — it auto-routes to the best yield with zero configuration.
Lending yield (Kamino, Drift, Save) comes from other users borrowing your deposits for leverage. Rates fluctuate with market activity. Yield-bearing stablecoins (USDY, sUSD, hyUSD, eUSX) generate yield through their backing mechanism — T-Bills, staking rewards, or delta-neutral strategies — and the token itself appreciates in value.
Yes. While your stablecoin deposits maintain dollar value in theory, you can lose money through: smart contract hacks, stablecoin depegs, liquidation in leveraged strategies, or protocols becoming insolvent. This is not the same as a bank savings account — there is no FDIC insurance.
Solana’s stablecoin yield landscape is the most diverse it has ever been. You can earn 4% with Treasury-grade safety or push for 20%+ with DeFi-native strategies — and everything in between.
My approach: I split allocations across tiers. A core position in Treasury-backed yields (USDY/sUSD) for safety, a larger allocation to established lending (Kamino/Lulo) for solid returns, and a smaller allocation to higher-yield protocols (Hylo, Perena) for growth.
The key principle: if you can’t explain where the yield comes from, don’t deposit. Everything else is just risk management.
Rates cited are from February 2026 and fluctuate. This is not financial advice. Always verify current rates and do your own research before depositing.
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@OfficialRazzaer
Solana DeFi Expert & DLMM Specialist
Solana DeFi expert since 2021, specializing in dynamic liquidity market making (DLMM) and advanced LP strategies. Creator of SolanaGuides.com and former YouTube educator with 6K+ subscribers.
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