Last updated on February 21st, 2022
You’ve just bought some USDC tokens and may be looking to stake them to earn more USDC.
However, USDC is not a Proof of Stake token, so you technically aren’t able to stake USDC tokens to earn rewards!
Instead, there are some platforms that allow you to lend out your USDC tokens to earn interest instead.
Contents
Can you stake USDC?
You are unable to stake USDC as it is a native ERC20 token, which follows a proof-of-work consensus and not a proof-of-stake. However, it is possible for you to earn extra USDC by lending out your USDC for higher interest.
How to ‘stake’ USDC
Here are 8 ways you can stake your USDC tokens:
This is a summary of all of the methods,
| Platform | Minimum Deposit | Lock-In Period |
|---|---|---|
| Celsius | None | Flexible |
| Nexo | None | Flexible |
| Crypto.com | 250 USDC | Flexible, 1 / 3 months |
| Binance | 1 USDC | Flexible |
| AAX | 10 – 100 USDC | Flexible, 7 / 14 / 30 days |
| Blockfi | None | None |
| Hodlnaut | None | None |
| Midas | None | None |
and here is each method explained in-depth:
Celsius
Celsius was founded in 2017 and is headquartered in New York. Here’s how you can start earning interest on this platform:
Go to ‘Menu → Transfer’ on Celsius
When you’re on the Celsius app, you would need to go to the Celsius menu and tap on ‘Transfer‘.
Select USDC from the dropdown menu
When you’re on this screen, you’ll need to select USDC as the currency that you wish to transfer into Celsius.
Copy the USDC deposit address from the Celsius app
After you select a currency, you will be given a wallet address. Celsius will give you a warning that they only accept ERC20 deposits of USDC.
This is because you can send USDC via multiple networks, such as the Binance Smart Chain or SOL. It is such a waste as these networks can help to reduce the fees when you are transferring USDC!
After selecting ‘I Understand‘, you will be shown the USDC deposit address which you can copy to the platform that you’re withdrawing from.
Your wallet address is one long string of letters and numbers. It is very important that you copy it letter by letter! If you make any mistake in the wallet address, your crypto will be lost forever!
As such, the best way will be to copy your wallet address directly.
If you are finding it hard to remember all of these long deposit addresses, you may want to consider simplifying them using Unstoppable Domains.
This allows you to send crypto to a .crypto or .wallet address, which makes it much easier to transfer cryptocurrencies between platforms!
After you’ve deposited USDC to Celsius, you will start earning interest on it.
Verdict
Here are some of the key features when you’re earning interest from Celsius:
| Minimum Deposit | None |
| Lock-Up Period | None |
Celsius is a flexible way to earn interest on USDC. Moreover, withdrawals from Celsius are free, which helps you to save a lot on fees!
As such, Celsius is a great platform to consider if you have a small sum of USDC.
Nexo
Nexo is another platform where you can earn interest on USDC.
Similar to Celsius, you will need to deposit USDC via the ERC20 network.
After you’ve deposited USDC to Nexo, you will start earning interest on it right away.
Verdict
Here are some of the key features when you’re earning interest from Nexo:
| Minimum Deposit | None |
| Lock-Up Period | None |
Similar to Celsius, you are able to earn interest on USDC with no minimum deposit.
Crypto.com
Crypto.com was founded in June 2016. They are based in Hong Kong, and serves over 10 million customers.
Here’s how you can earn interest on USDC on their app:
Go to ‘Earn’ on the Crypto.com App
To start lending your crypto, you will need to go to the ‘Earn’ tab.
Select the ‘+’ sign and select USDC as the currency you want to lend
After that, you’ll need to select the ‘+’ sign on Crypto Earn,
and then select USDC as the currency that you wish to deposit.
Select the term that you wish to lend USDC
After that, you will need to select the term that you wish to lend out USDC.
There are 3 different terms:
- Flexible
- 1 Month
- 3 Months
For the flexible term, you are able to withdraw USDC at any time. However, the interest that you earn is much lower.
If you choose either the 1 month or 3 month term, the USDC that you deposit will be locked up for that period of time.
Even if the price of USDC starts to change, you will be unable to sell it!
However, the benefit is that you will be able to earn a higher interest compared to the flexible term.
Another factor that affects the interest that you earn is the amount of CRO that you staked on the Crypto.com App:
| Term | Interest Rate |
|---|---|
| Flexible (Ruby or Lower) | 6% |
| Flexible (Jade Green or Higher) | 8% |
| 1 Month (Ruby or Lower) | 8% |
| 1 Month (Jade Green or Higher) | 10% |
| 3 Months (Ruby or Lower) | 10% |
| 3 Months (Jade Green or Higher) | 12% |
The amount of CRO that you stake depends on which Crypto.com Visa card you wish to own.
If you own the Ruby Steel card, you will be able to receive a CRO rebate if you use the Crypto.com Visa card to pay for Spotify!
Agree to the terms and conditions of Crypto.com Earn
There are certain Terms and Conditions that you’ll need to accept.
By accepting the Earn and Credit T&Cs, you are accepting the risks involved with lending your crypto. There could be a risk that you will lose all of your cryptocurrency if Crypto.com closes down as well!
Select the amount of USDC that you wish to lend out
The last part is that you’ll need to select the amount of USDC that you wish to deposit to Crypto.com Earn.
You are required to deposit a minimum of 250 USDC to use this feature. This is quite a huge sum, and you are unable to deposit any sum that is smaller than that!
After confirming your deposit, you will reach this confirmation page.
Verdict
Here are some of the key features when you’re earning interest from Crypto.com:
| Minimum Deposit | 250 USDC |
| Lock-Up Period | Flexible, 1 / 3 months |
You are able to choose the lock-up period, depending on the flexibility you wish to have with your USDC funds.
However, the shorter the term, the lower the interest you’ll receive!
Moreover, Crypto.com requires quite a large minimum deposit of 250 USDC, which can be quite a huge sum!
Crypto.com’s Earn is more suitable if you have a large amount of USDC.
Binance Earn
Binance is one of the largest cryptocurrency exchanges in the world, and they have an Earn program where you can earn interest on USDC as well.
Here’s how you can earn interest on USDC with Binance Earn:
- Go to ‘Wallets’ and then select ‘Earn’
- Select ‘Subscribe’ and search for USDC
- Select your preferred term for lending out USDC
- Enter the transaction details
Go to ‘Wallets’ and then select ‘Earn’
On the home page of Binance, you’ll need to go to the ‘Wallets‘ tab and select Earn.
Select ‘Subscribe’ and search for USDC
Binance offers a variety of savings products for different cryptocurrencies. You will need to search for USDC.
Select your preferred term for lending out USDC
This will allow you to view some of the savings products that Binance offers for USDC.
Currently, Binance only offers a flexible savings plan where you can withdraw your funds at any time. However, the interest rate offered may be lower compared to other platforms.
Enter the transaction details
The last step you’ll need to do is to enter the amount of USDC you wish to subscribe to the savings plan.
After this, the USDC that you’ve deposited will start earning interest from the next day onwards.
Verdict
Here are some of the key features when you’re earning interest from Binance:
| Minimum Deposit | 1 USDC |
| Lock-Up Period | Flexible |
Binance currently only offers a flexible lockup period for USDC. The interest rate is low, but you are free to redeem your funds almost instantly.
As such, Binance is a good choice if you intend to quickly cash in on your profits.
AAX
AAX is a platform where you can earn a decent amount of interest on USDC too.
However, you will need to lock up your funds if you want to earn a higher interest rate.
Here’s how you can earn interest on USDC with AAX:
- Go to ‘Assets’
- Select the ‘Savings’ tab and select ‘Buy Savings’
- Search for USDC
- Select the term and enter the transaction details
#1 Go to ‘Assets’
First, you’ll need to go to the Assets tab on AAX.
#2 Select the ‘Savings’ tab and select ‘Buy Savings’
After that, select the Savings tab,
and then select ‘Buy Savings‘.
#3 Search for USDC
This will bring you to the AAX Savings page.
You will need to search for USDC,
which will show all of the available terms.
AAX offers both fixed and flexible terms.
#4 Select the term and enter the transaction details
After selecting the term that you wish to subscribe to, you will need to select the amount of USDC that you wish to deposit.
Verdict
Here are some of the key features when you’re earning interest from AAX:
| Minimum Deposit | 10 – 100 USDC |
| Lock-Up Period | Flexible, 7 / 14 / 30 days |
AAX has a minimum deposit, and may only be useful if you have a large amount of USDC.
Blockfi
You are able to earn an interest on USDC with Blockfi.
You can check out my guide on how to send USDC to your Blockfi account for more information.
Verdict
Here are some of the key features when you’re earning interest from Blockfi:
| Minimum Deposit | None |
| Lock-Up Period | None |
Similar to Nexo and Celsius, you will be able to earn interest on USDC without any minimum deposit.
What’s more, you will not incur any withdrawal fees for your first USDC withdrawal each month.
Hodlnaut
Hodlnaut is an alternative platform that allows you to earn interest on USDC.
Similar to other platforms like Blockfi, Celsius or Nexo, you will need to send USDC to the platform via the ERC20 network.
Once you have done so, you can start earning interest on your USDC which will be credited weekly.
Verdict
Here are some of the key features when you’re earning interest from Hodlnaut:
| Minimum Deposit | None |
| Lock-Up Period | None |
There are no minimum amounts to start earning interest on USDC with Hodlnaut.
You will also receive one free withdrawal a month from Hodlnaut, which is really helpful!
Midas
Midas is an another investment platform where you’re able to send USDC and earn interest.
To deposit USDC to Midas, you will need to click on ‘Invest‘.
This will create a node at the top of the dashboard, where you’ll need to select ‘Deposit‘,
and this will give you the ERC20 deposit address to send your USDC to.
If you send USDC using other networks (e.g. Solana or Binance Smart Chain), there is a chance that your funds may be lost forever!
Once you have deposited USDC on Midas, you will start receiving rewards after 24 hours.
Verdict
Here are some of the key features when you’re earning interest from Midas:
| Minimum Deposit | None |
| Lock-Up Period | None |
There is no minimum amount needed for you to start earning interest on Midas.
Conclusion
While you can’t stake USDC, you still can lend out your funds to earn some interest.
This is similar to how you would lend out USDT, XRP or MANA instead of staking it.
When you are considering the best platform, the 3 main considerations you should have include:
- The minimum amount required to start earning interest
- The lockup period when subscribing to a savings plan
- The type of network that each platform supports (only ERC20 or others)
This is because USDC can exist on other networks (e.g. Solana), where the withdrawal fees are much cheaper.
👉🏻 Referral Deals
If you are interested in signing up for any of the products mentioned above, you can check them out below!
Nexo Referral (Earn USD$25 in BTC)
If you are interested in signing up for a Nexo account, you can use my referral link. You will receive USD$25 in BTC after holding $100 or more in assets for the next 30 days.
Here’s what you need to do:
- Sign up for a Nexo account
- Complete the Advanced Verification on Nexo
- Transfer ≥ $100 worth of assets into Nexo
- Hold these assets for at least 30 days
You will receive your BTC reward in the next 30 days!
You can view more information about this promotion on Nexo’s website.
Crypto.com Referral (Get up to $25 USD worth of CRO)
If you are interested in signing up for Crypto.com, you can use my referral link and enter the code ‘x2kfzusxq6‘.
We will both receive $25 USD worth of CRO in our Crypto Wallet.
Here’s what you’ll need to do:
- Sign up for a Crypto.com account
- Enter my referral code: ‘x2kfzusxq6‘
- Stake enough CRO to unlock a Ruby Steel card or higher
The amount of CRO that you need to stake depends on the card you wish to get, and the currency you are staking in.
You can read more about the referral program on Crypto.com’s website.
Binance Referral (Receive 5% off your trading fees)
If you are interested in signing up for a Binance account, you can use my referral link.
You will be able to receive 5% off all of your trading fees on Binance!
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