Y Combinator-backed fintech Pebble uses stablecoins to offer 5% yield on cash

Stablegains was tied 100% to Anchor yields, and Anchor imploded. That said, targeting 5% APR is magnitudes more realistic than 15% APR. Pebble is able to do this through overcollateralized lending of USDC. It’s not risk-free, but it’s a pretty good risk-adjusted trade right now. The rates are higher mostly because traditional banks don’t have the infrastructure to underwrite or custody crypto-backed loans.