Why does USDC pay interest?

BlockFi is a centralized finance platform that was founded in 2017. The interest rates on BlockFi vary depending on the amount you deposit. You can earn between 8% to about 9.25% interest on your crypto stablecoin holdings.

Stablecoins are digital currencies whose values are most often pegged to price-stable assets, such as the US dollar or gold. With stablecoins, investors can earn interest through crypto lending while avoiding the volatility of cryptoassets like bitcoin (BTC), ethereum (ETH), or binance coin (BNB).

And just as crypto is far more volatile than the stock market, stablecoins have more risk than a savings account . That’s one of the reasons you’re being compensated with much higher rates of interest.9 Eyl 2021

Tether will typically earn more interest than other popular stablecoins like GUSD, USDC and DAI because of its high demand in trading and cryptocurrency loans .