| Daily Earnings | +$0.35 |
| Monthly Income | +$10.50 |
| Annual Return | +$126.00 |
| Investment | Daily Profit | Monthly Profit | Yearly Forecast |
|---|---|---|---|
| $1,000 | $0.03 | $1.05 | $12.60 |
| $5,000 | $0.17 | $5.25 | $63.00 |
| $25,000 | $0.86 | $26.25 | $315.00 |
| $50,000 | $1.73 | $52.50 | $630.00 |
* Projections assume APY remains constant and do not account for gas fees.
Investing in USDS via Aave V3 currently provides a return that prioritises capital preservation over aggressive growth.
Investors must remember that this yield is denominated in USDS. The fiat value of your portfolio remains subject to the market volatility of the underlying asset, which may amplify or negate yield gains.
To maximise your crypto-asset earnings on Aave V3, frequency matters. With current daily earnings of ~$0.35 (per $10k), manual reinvestment should be weighed against gas costs.
Given the security-first but higher-cost environment of Ethereum, frequent interaction with the smart contract is costly. To maximise returns, avoid daily claiming; instead, let the rewards accumulate to a threshold where the gas fee represents less than 1% of the claim value.
Understanding how yield is generated is critical for any DeFi investor. The returns displayed in this USDS APY Calculator differ from traditional finance in several ways.
The USDS APY Calculator above projects future value based on current network snapshots. In DeFi, returns are dynamic.
The magic of APY (Annual Percentage Yield) vs APR (Annual Percentage Rate) lies in compounding. By reinvesting your daily earnings of ~$0.35, you exponentially grow the principal balance.
Yields on Ethereum fluctuate based on 'Utilisation Rates'. When demand for borrowing or trading USDS is high, yields spike. When activity cools, yields compress. This tool assumes a constant rate, but active monitoring is recommended.