USDC yield
USDC yield is the return earned by supplying USDC to a lending market or decentralized finance protocol. USDC is a US-dollar stablecoin issued by Circle, meaning each token is designed to hold a value close to one dollar. The yield is the interest that accrues when that stablecoin is lent out rather than held.
The return comes from the interest that borrowers pay to borrow USDC. When someone supplies USDC to a lending market, borrowers draw on that supply and pay interest, and part of that interest goes to the supplier. The rate is variable. It is set by supply and demand in each market and moves as borrowing activity changes.
USDC yield is not guaranteed. The rate can fall as well as rise, and lending through an on-chain protocol carries risk, including smart-contract risk and the market risk that comes with variable rates.
Related terms: Stablecoin · Lending vault · Morpho
