Currently, Livret A, LDDS and other term accounts report a return of around 3% /year. Thanks to the interest rates of stablecoins, especially on the Euro and the Dollar, you can look for attractive returns paid every day and which can exceed 10% /year (between 4% /year and 15% /year depending on the day). To take advantage of it, whether you are a business or an individual, you have two options:

1. invest directly, by managing your own wallet,
2. use a yield account solution, by simply placing euros. A company then takes care of managing your assets and pays you the return.

In this article, we'll explain how to get a return from stablecoins with these two options.

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A reminder to start with: what is a stablecoin backed by a currency?

A currency backed stablecoin is a digital asset whose value is linked to a fiat currency such as the US dollar, the euro, or another national currency. It is designed to maintain a stable value against this underlying currency.

These stablecoins are backed by reserves of fiat currency in bank accounts or other secure assets. Each unit of the stablecoin is supposed to correspond to an equivalent amount of the reserve currency. For example, a stablecoin backed by the US dollar should always be worth around $1 USD.

This stability is generally maintained by regulatory, control, or governance mechanisms put in place by the stablecoin issuer. The latter can be financial entities, private businesses, or even decentralized organizations in the case of blockchain-based stablecoins.

The benefits of currency backed stablecoins are their relative stability compared to volatile cryptocurrencies like Bitcoin, making them attractive for use cases such as remittances and everyday payments.

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1st option to benefit from the performance of stablecoins: manage your own wallet

Here's how to do it.

You must first create a wallet with your identifiers and access codes. This wallet will then have a unique address, composed of a series of numbers and letters.

Then, you need to credit this wallet with a stablecoin, for example EUROC, which is a stablecoin backed by the Euro.

If you do not yet have digital assets, you should use a service for converting Euros to EUROC, called an “On Ramp” service (the opposite is called “Off Ramp” and consists of converting stablecoins into fiat currency into your bank account).

Once you have stablecoins on your wallet, you can then place them to generate a return. You should go to platforms that allow you to invest these stablecoins:

• either in Liquidity Pools, which are a kind of automated exchange offices that allow conversions between different currencies,
• either in Performance Protocols,
• or again in Loan/Borrowing Protocols.

If you contribute your stablecoin to a Liquidity Pool, you will continuously receive a portion of the “exchange fees” that are generated by this liquidity pool.

The Yield Protocols seek to optimize investments, especially in liquidity pools. But since they charge a commission, they are not necessarily more attractive than a direct investment.

Regarding Loan Protocols, you should know that in decentralized finance, most of the time a loan can only be made if the borrower has deposited at least 100% of the sum as collateral, and even generally 120%. The borrower can therefore mobilize cash without selling his assets, but he cannot make the lender bear the risk of repayment.

Let's go back to our concrete example if you want to place EUROC on a liquidity pool. For example, you can go to the following sites:

• https://curve.fi 
• https://yearn.fi/
• https://app.balancer.fi/ 

Then search for “EUROC” in the proposed Pools to discover the current yield and associated conditions.

NB: to start, do a search on the “Ethereum Mainnet” network. It just means you'll be using the main and central blockchain. You can then, after becoming familiar, use other derivative networks such as Arbitrum or Optimism, whose costs are lower but require more management operations.

After connecting your wallet to the selected site, the latter will recognize the amount of EUROC available on your Wallet, and you can launch the deposit operation that will require your validations. Once the EUROCs are deposited, you start to receive the return.
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‍What are the costs if I manage the wallet myself?

There is no subscription, but you will have to bear the transaction costs yourself. Currently, on the Ethereum Now network, making a single transaction costs between €30 and €100, regardless of the amount of this transaction.

In addition, after depositing, if you want to withdraw money, even only the return earned, you must also pay transaction fees between €30 and €100. So unless you invest amounts that exceed €25,000 for the return to be significant, the fees can quickly cancel out the point of managing your own wallet by yourself. Especially if you want to be able to get out of it at any time (in this case we invite you to read the 2nd option in this article: use a yield account solution by simply placing euros in it).

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What pools do you recommend placing stablecoins on?

The conditions vary constantly, and you should regularly monitor your wallet and the various offers to mediate possible changes.

To begin with, we can remind you of these two sites mentioned as examples a little above: https://curve.fi and https://yearn.fi/.

Attention, these are suggestions and do not replace the need to conduct your own analysis to be informed of the conditions and form your own opinion.

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2nd option: use a performance account solution, by simply placing Euros

If the 1st option seems too complicated or too long to manage, you can opt for a much simpler formula for your business or for yourself: use a performance account on which you only need to place euros. It is a type of stable interest-bearing savings account, with higher interests than interest-bearing current accounts or regulated savings accounts, and whose operating principle is different.

The principle of this interest-bearing savings account is simple:

• you invest euros from your bank account,
• you receive a return on these euros invested,
• you get your euros back at any time.

Advantages of this 2nd option:

• no technical knowledge is required,

• you don't have to manage anything: no wallet transactions, no arbitration decision according to this or that liquidity pool,
• transaction fees are diluted over large volumes, and therefore you can invest without any entry fees.

Disadvantage:

• the company that operates this type of service charges a commission. But in general, this is still more interesting than managing directly, thanks to the dilution of transaction costs over large unit volumes managed by the company. And you also automatically benefit from the monitoring carried out by the company to identify the best investments.

Here are some examples of products that use this paid account principle every day:

• The eco account:

• no entry or exit fees, no subscription,
• recovery of funds in 1 to 3 working days,
• the company keeps 20% of the gross return to cover the costs of the service + 5% to buy carbon credits,
• the return net of expenses, i.e. approximately 8.20% /year for the customer, is paid every day,
• accessible to businesses and individuals
• main conditions: to be domiciled in France, to be of legal age (for natural persons)

To discover the Eco Account, click here https://www.compte-eco.fr/ 

• My C book

• only for businesses, one of the products offered by this company allows you to choose between several asset portfolios to invest cash,
• recovery of funds in 5 days
• To discover the Mon Livret C offer, click here https://www.monlivretc.com/ 

• Nexo - “Earn interest” solution

• although not French-speaking, the site offers to be able to place your cash on the stablecoins of your choice,
• interest paid every day,
• To discover Nexo's offer, click here https://nexo.com/earn-crypto 

Hoping that this detailed practical point will have brought you the answers you were looking for, we wish you a good performance!