Where the interest comes from
USDC is a digital dollar issued by Circle that aims to always be worth one dollar. When you “put it to earn interest”, you are actually lending it: it goes into lending protocols on the Solana network, where other people borrow it and pay interest to use it.
That interest is your yield. It does not come out of thin air or from new depositors: it comes from borrowers, and that is why it depends on how much they want to borrow.
What is the USDC interest rate?
There is no single USDC interest rate: it is the rate each lending protocol is paying that day, expressed as an annual percentage (APY). It moves every day and differs from one protocol to another, so a number you read in an article may already be out of date.
At INVERSHA the rate you see in your dashboard is the current one after our fee, so it is the one you actually earn. Compare it with a savings account with care: a bank deposit is covered by deposit insurance and a crypto yield is not, which is part of why the two can differ.
Why the rate changes
The rate is not fixed: when many people want to borrow USDC, it goes up; when demand is low, it goes down. That is why any number you see is today’s, not a promise. Be wary of anyone who guarantees you a fixed rate in crypto.
How it works at INVERSHA
- It goes through Lulo, on Solana, at its protected tier. Lulo spreads the money across lending protocols on the network.
- No lock-up. You get it back whenever you want: withdrawal is instant.
- We show you the rate after our fee, so the number you see is the one you keep.
- It works alongside the engine. If you turned on Autopilot, what is not invested can earn interest, and when the engine needs to buy, it takes what it needs from there.
To turn it on: open a USDC portfolio, deposit over the Solana network (how to send USDC over Solana) and turn on the yield from your dashboard.
What the protection covers and what it does not
Lulo’s protected tier has a layer that covers security failures (exploits) of the protocols it invests in. It is useful, but it does not cover everything. It does not cover:
- A failure in Lulo’s own contracts.
- USDC losing its peg to the dollar.
- An outage of the Solana network.
What about USDT?
Not today: Lulo only accepts USDC. A USDT portfolio at INVERSHA can invest in stocks, gold and crypto just like a USDC one, but its free balance does not earn interest. We explain it inhow to invest your USDT.
What never goes away
There is no crypto yield without risk of losing the principal. The rate is variable, not guaranteed, and the money depends on contracts, protocols and the network itself. A higher yield almost always means more risk, not a better product. Only put to earn interest what you can afford to risk. INVERSHA is not an investment adviser.