Stablecoin interest rate strategies could spark a new wave of yield competition. As platforms like Aave, MakerDAO, and Ethena offer APYs from 1% to 20% through lending, staking, and DeFi protocols, competition intensifies to attract capital. High yields, driven by demand in bullish markets or innovative strategies like Ethena’s delta-neutral hedging, lure investors but raise scalability concerns. Centralized platforms like Binance and Ledn provide 8-10% APY, while DeFi options fluctuate with market dynamics. However, high rates often signal higher risks, including platform insolvency or regulatory shifts. The race for competitive yields may push protocols to innovate safer, transparent strategies or risk repeating past failures like Terra’s UST. Investors must weigh returns against platform reliability and market volatility.