HomeCoinsEthereumHow do stablecoins generate profits? ELI5

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Hello everybody!

Does somebody know the way stablecoin issuers like Circle, Tether and MakerDAO generate profits? It is all a bit of unclear to me and after fresh occasions I’ve began to do extra due diligence about crypto merchandise. A few of them are in reality unclear or I am simply silly.

Anyhow noticed this image on Twitter.

https://preview.redd.it/fct942qa8pz91.png?width=560&layout=png&auto=webp&s=041863df615ba329bfba0c0eb113787e4d1b23ba

And it made me suppose – the place are the rates of interest/margins won from? From decentralised lending platforms like Aave or from exchanges with lending? Or do they lend USDT/USDC/BUSD to establishments?

Due to whoever is helping me perceive and feature a excellent Sunday!



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