![\"decrypting](\"https:\/\/img.decrypt.co\/insecure\/rs:fit:1536:0:0:0\/plain\/https:\/\/cdn.decrypt.co\/wp-content\/uploads\/2021\/10\/decrypting-defi-2.png@webp\")
<\/span>Though inflation<\/a> finally appears to be on its way down, interest rates are still soaring.<\/p>\n This is painful for several reasons, but for crypto bros, it basically means risk-on assets like Bitcoin<\/a><\/span> and Dogecoin<\/a><\/span> aren\u2019t as attractive as, say, conservative bonds issued by the U.S. government.<\/p>\n But it\u2019s not a total wash.<\/p>\n In fact, the DeFi<\/a><\/span> sector\u2013specifically stablecoin providers\u2013is finding unique moves to make the most of the current high-interest rate environment.<\/p>\n Yes, folks, it’s the return of the interest-bearing stablecoin. This time, though, things are looking a whole lot different than Terra\u2019s Anchor protocol<\/a>.<\/p>\n From Maker\u2019s DAI to Frax Finance\u2019s sFRAX, the arena is getting crowded<\/a> with different flavors of this new variety of stablecoin.<\/p>\n sDAI (the name of the interest-bearing version of the stablecoin) and sFRAX both generate their yield from T-Bills and other real-world asset investments, which are things like corporate debt.<\/p>\n And with that \u201csafe\u201d yield of as much as 5% on those idle U.S. dollars, investors are pouring in.<\/p>\n Spark Protocol, the project that\u2019s powering Maker\u2019s sDAI push, just announced that the token had hit 1 billion in total circulation.<\/p>\n It\u2019s not just the dollar coins either; euro-pegged stablecoins like those from Angle Protocol are also getting in on the action. Angle\u2019s agEUR is raking in a 4% yield from its bag of real-world assets<\/a>.<\/p>\n Still suspicious of anything yield-related in crypto?<\/p>\n Pablo Veyrat, the co-founder of Angle, told Decrypt, \u201cYou should be worried about outrageous yields if you don’t understand where the yield comes from. A stablecoin is a Ponzi if it relies on endogenous collateral assets.\u201d<\/p>\n