DeFi Staking Guide | Moneywika
Passive Income 2026

DeFi Staking: Earn 8-12% APY on Stablecoins

Traditional banks offer 0.1% interest. Decentralized Finance (DeFi) allows you to act as the bank by providing liquidity to audited protocols. By staking USDC, USDT, or DAI, you can earn consistent yield without the volatility of Bitcoin.

Vetted Protocols (2026 Audit-Verified)

ProtocolEst. APYRisk LevelAction
Aave v46–9%LowStake
Curve Finance8–12%MediumStake
Yearn Vaults10–14%MediumStake
Ethena12–18%HighStake

Understanding the Risks

Smart Contract Risk

Even audited code can have bugs. If the protocol is hacked, your funds could be lost. Always diversify across 2-3 platforms.

De-pegging Risk

If a stablecoin like USDC loses its 1:1 value with the Dollar, your investment value will drop regardless of the APY.

Getting Started in 3 Steps

  • 1

    Setup a Wallet: Use a self-custody wallet like MetaMask or Rabby. Never share your seed phrase.

  • 2

    Buy Stablecoins: Transfer USD to an exchange (Coinbase/Binance) and buy USDC or USDT. Send it to your wallet address.

  • 3

    Connect & Stake: Visit a protocol above, connect your wallet, and deposit into the "Stablecoin Pool." You will begin earning interest every block.

DeFi FAQ

Is there a minimum amount?

Technically no, but gas fees (transaction costs) on Ethereum can be high. If you have less than $1,000, consider using the Base or Arbitrum networks.

Can I withdraw anytime?

Most "Lending" pools like Aave allow instant withdrawals. "Locked" staking may require a 7-21 day waiting period.

Do I have to pay taxes?

Yes, in most jurisdictions, interest earned in DeFi is treated as income or capital gains. Keep track of your transactions using tools like Koinly.