How do these stablecoins generate passive income?

[bonk]

A: They use three main models: tokenized treasuries/money market funds, DeFi savings wrappers (e.g., sDAI), and synthetic derivatives-based strategies (e.g., sUSDe). Returns may accrue via rebasing or token appreciation but carry regulatory, market, and liquidity risks.

[Abdul Khan]

Stablecoin yield models break down into 3 buckets: tokenized treasuries, DeFi wrappers, and synthetic derivatives. Each comes with its own risks. ️

[EmTeam]

sDAI = DeFi wrapper, sUSDe = synthetic derivative. Both generate yield differently — but neither escapes regulatory + liquidity risks.

[Rimon Khan]

Tokenized treasuries/money funds are the “safest” option, but they’re still subject to compliance and access limits. Not a free lunch.