15% - 31% APY with Stablecoins On SEI Network, Even in a "Bearish Market"

"$250 million liqudated" - It's a bear market

When we thought the market was recovering, boom, the Bybit $1.5bn hack happened.

The 'fear index' kept getting freakishly high. It was the sign I needed to sell off some of my bags and convert them to stables (Paired with technical advice).

Now, with about 80% of bags converted to stables, I wanted to find ways to make it work for me still.

I have never liked the idea of letting money 'lie around'.

This led me to explore the SEI network.

The market might be shaky as hell, but it seems to not 'have' much on SEI NETWORK.

From the DeFi activities to the community strength, it's just insane.

In this letter, I'll talk you through the SEI NETWORK and why I became super interested, and for this one, I'll talk about the yield earnings.

In another SEI network 'dedicated letter', I'll talk about other opportunities. That said, let's jump in.

Banking, but in Web3

A while back, I decided I wanted to diversify my portfolio. To have crypto, stables (USDC), and fiat (NAIRA).

I like my money to work for me, I went to the bank to inquire about interest rates if I lend my fiat to them (fixed deposit).

Guess what?

They said they'd give me a 5% APY. "It's a great deal, ma'am, the best even," the banker said, smiling from ear to ear.

I would have thought, "Oh, not so bad," if I hadn't lent my stables (USDC) on a Web3 protocol for a 150% APY.

I said that to draw a line between traditional banking and DeFi.

For context, DeFi is banking on the blockchain but without the middlemen (bankers, account managers).

It allows you to cut out 'bank' so you can lend, borrow, or trade directly with others using crypto.

[I'm tryna simplify it as much as possible, but lmk in the comments if 'DeFi' still doesn't make sense, and I'll write a full letter on it!]

The SEI Network

In the DeFi space, there are many protocols. One such protocol is SEI Network.

It's a relatively new layer one network that's fast, cheap, and focused on “DeFi” (decentralized finance).

Why SEI?

- Sei’s DeFi protocols offer some of the most attractive annual percentage yields (APYs) in the space.

For instance, Takara, a DeFi protocol on SEI, offers a 17% - 31% APY on its stablecoin liquidity pools, while Yei Finance delivers a 14% - 17% APY on similar offerings.

- Sei processes transactions FAST (up to 20,000 transactions per second).

- Transactions on SEI are CHEAP (less than $0.008 for gas)

Again, why SEI?!!

SEI Network is one of the fastest-growing chains in the Web3 space.

Since starting in 2023, Sei has handled 1.1 billion transactions—showing it’s reliable and busy.

In its first week (August 2023), Sei added 300,000 accounts, and in late 2024, Sei had the highest increase in daily users among major blockchains—beating Ethereum and others over 3 months.

Means more people are using Sei, making it a solid place to start.

These stats, plus the community enthusiasm, made me MEGA bullish on SEI Network.

A Safe Way to Earn on SEI

"Why did you convert all your crypto to stables, why not leave it to pump?" - Mr newbie.

Well, let's just say I like to play it safe, even though I can be a big gambler too.

If you don't like seeing your money go down with a free downward chart, like me, convert to stables.

For context, Stablecoins are crypto that stay steady, like a dollar, even when other crypto prices fall.

2 Protocols I started with

Protocols built on SEI Network allow you to earn good interest rate with your stables.

And here are 2 I started my journey with:

- Takara: Earn 31% interest a year by holding stablecoins there.

- Yei Finance: Get 17% interest by lending them out.

You deposit your stablecoins, and they grow over time- simple.

With Sei’s growth, these apps are getting more popular—and more rewarding.

What are Takara and Yei Finance?

Takara: 18% - 31% Interest

Takara lets you store stablecoins and earn 31% interest a year.

For example, $100 could grow to $131 by next March. It’s straightforward and uses Sei’s fast system.

Yei Finance: 17% Interest

Yei Finance lets you lend stablecoins and earn 17% interest. You deposit, others borrow, and you get paid back with extra. It’s a trusted option on Sei, and I like it for steady returns.

Both beat bank savings accounts by a mile.

Why Do This Now?

For me, it's about being smart and conservative.

And sometimes, that's the best strategy. More like a 'live to fight another day' thingy.

Getting Started on SEI

How about a quick guide to making your first interaction on SEI to use your stables to earn yields?

Here:

- Get Stablecoins: Either USDC or USDT, but I would recommend USDC because it has the highest Annual percentage yield (APY).

You can get your stables from exchanges like Binance (USDC in SEI network) or convert any other crypto in your wallet using Relay Protocol to bridge.

- Use the protocols: Go to Takara or Yei Finance’s websites, connect your wallet, and deposit your stablecoins.

You can try out a small amount first!

$1.3m Reward Pool

To maximize, use the Binance wallet!

Binance Wallet partnered with SeiNetwork's DeFi protocols for a simple yield campaign.

What you get:

- yield returns
- Reward from the $1.5M pool
- Points for potential airdrop for protocols like @YeiFinance

What you need:

- Minimum of $25 to get started

- getting on a DeFi protocol on SEI, I recommend Yei Finance

- Download the Binance Wallet to join the campaign

Duration of campaign:

March 4th 00:00 UTC to April 14th 23:59 UTC

Web3 is all about maximizing opportunities, even in shaky markets. And SEI is one network positioned to lead, regardless.

NOTE: I’m not a financial advisor; interaction with DeFI protocols and Web3 at large comes with risk. Please, DYOR. If you’re lost on how to DYOR, here’s a guide: here

That's it for this one.

Untill next time,

- Phoenixx, the SEI Maxi.