| Daily Earnings | +$0.38 |
| Monthly Income | +$11.50 |
| Annual Return | +$138.00 |
| Investment | Daily Profit | Monthly Profit | Yearly Forecast |
|---|---|---|---|
| $1,000 | $0.04 | $1.15 | $13.80 |
| $5,000 | $0.19 | $5.75 | $69.00 |
| $25,000 | $0.95 | $28.75 | $345.00 |
| $50,000 | $1.89 | $57.50 | $690.00 |
* Projections assume APY remains constant and do not account for gas fees.
Investing in LUSD via Aave V3 currently provides a return that prioritises capital preservation over aggressive growth.
As LUSD is a pegged asset, this yield of 1.38% represents 'pure yield' with minimal price exposure risk, barring any black-swan de-pegging events.
To maximise your crypto-asset earnings on Aave V3, frequency matters. With current daily earnings of ~$0.38 (per $10k), manual reinvestment should be weighed against gas costs.
On Ethereum Mainnet, gas costs can erode yield for smaller positions. We recommend a monthly compounding schedule or using a yield aggregator to batch transactions, ensuring fees do not outweigh your returns.
Understanding how yield is generated is critical for any DeFi investor. The returns displayed in this LUSD APY Calculator differ from traditional finance in several ways.
By depositing LUSD, you become a 'Liquidity Provider' (LP). You are essentially acting as a bank, facilitating trades for other users on the blockchain. In exchange for locking your capital, you earn the APY shown above.
Before allocating capital, consider the 'Real Yield' (Inflation Adjusted):
With global inflation at roughly 3%, your Real Yield is -1.62%.
Furthermore, be aware of Smart Contract Risk. While is established, interacting with any smart contract on Ethereum involves a non-zero degree of technical risk.