> ## Documentation Index
> Fetch the complete documentation index at: https://docs.anchorage.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Stablecoin rewards and yield

> Earn yield on stablecoin holdings within your Porto vaults.

<Callout icon="vault" color="#ac96ff">
  You're viewing **Porto** documentation — a distinct product from Anchorage Digital's core custody platform. [Go to Anchorage Digital docs →](/knowledge-base/platform/users/overview)
</Callout>

Porto offers yield opportunities on stablecoin holdings. You can earn rewards by holding certain stablecoins in your vaults, with minimal additional steps beyond standard deposits and management.

## How stablecoin yield works

**Simple mechanics:**

* You hold stablecoins (USD, USDC, USDT) in your Porto vault
* Porto automatically enrolls eligible balances in yield-generating programs
* You earn rewards at scheduled intervals (daily, weekly, or monthly)
* Rewards are credited directly to your wallet

**No extra steps required:**

* You don't need to "stake" your coins — they're already in your vault
* You don't need to move assets to other contracts
* You can withdraw at any time (subject to your vault's policies)

## Eligible stablecoins

Not all stablecoins earn yield. Check which are eligible for your organization:

| Stablecoin | Common use         | Yield availability | Notes                                   |
| :--------- | :----------------- | :----------------- | :-------------------------------------- |
| **USDC**   | General purpose    | ✔                  | Often highest yield rates               |
| **USDT**   | Exchanges, trading | ✔                  | Varies by program                       |
| **USD**    | Anchorage-issued   | ✔                  | Highest security, integrated with Porto |
| **DAI**    | DeFi protocols     | ✔                  | May vary by vault                       |
| **FDUSD**  | Regional           | Varies             | Check with your administrator           |

Check your vault settings to see which stablecoins have yield enabled.

## Stablecoin yield programs

Porto offers access to different yield programs:

### Direct yield (Porto-integrated)

* **How it works** — Your stablecoins earn yield through Porto's integrated programs
* **Safety** — Assets remain in Porto vaults under your custody and policies
* **Withdrawals** — You can withdraw anytime (subject to vault policies)
* **Tax implications** — Rewards are taxable income when received

### Partner protocols

* **How it works** — Your stablecoins are deployed to trusted third-party protocols (Aave, Lido, etc.)
* **Withdrawal timeline** — Some protocols have withdrawal delays or lock periods
* **Higher yields** — Often higher than direct yield programs
* **Increased risk** — Partner protocol smart contract risk applies

Check your vault settings to see which programs are available.

## Viewing your stablecoin yield

<Steps>
  <Step title="Open a stablecoin wallet">
    From your vault, select a stablecoin (USDC, USD, USDT, etc.).
  </Step>

  <Step title="View balance and rewards">
    The wallet display will show:

    * Your current stablecoin balance
    * Accumulated rewards
    * Annual percentage rate (APR) or yield rate
    * Last reward payment date
  </Step>

  <Step title="View yield details">
    Tap **Yield details**, **Rewards**, or **APR** to see:

    * Total rewards earned (lifetime and current period)
    * When rewards are paid out
    * Yield program details
    * Historical reward payments
  </Step>
</Steps>

## Enabling yield on stablecoins

Yield may be enabled automatically, or you may need to opt in:

<Steps>
  <Step title="Open stablecoin settings">
    From your vault, open a stablecoin wallet and look for **Settings** or **Yield options**.
  </Step>

  <Step title="Check yield status">
    You'll see whether yield is:

    * **Enabled** — You're already earning rewards
    * **Disabled** — Yield is available but you've opted out
    * **Unavailable** — This stablecoin doesn't offer yield
  </Step>

  <Step title="Enable yield (if needed)">
    If disabled, tap **Enable yield** or **Opt in**.
  </Step>

  <Step title="Review terms">
    You'll see:

    * The yield program details
    * The APR or yield rate
    * Any lock periods or withdrawal restrictions
    * Tax and compliance information
  </Step>

  <Step title="Confirm">
    Tap **Enable** or **Accept terms**. You may need biometric authentication.
  </Step>
</Steps>

<Note>
  Enabling stablecoin yield is optional. You can earn yield on part of your holdings and keep the rest in non-yielding accounts if you prefer.
</Note>

## Reward payout schedule

Rewards are distributed on a schedule depending on the program:

| Schedule    | Frequency             | Example                     |
| :---------- | :-------------------- | :-------------------------- |
| **Daily**   | Every 24 hours        | USDC yield, most programs   |
| **Weekly**  | Every 7 days          | Some partner protocols      |
| **Monthly** | End of calendar month | Certain enterprise programs |

Rewards are credited directly to your stablecoin wallet. You'll see them in your [Activity log](/knowledge-base/porto/assets/activity-history) as reward deposits.

## Tax implications

Stablecoin rewards are taxable income. You're responsible for:

* **Reporting yield income** — Treat rewards as ordinary income on your tax return
* **Tracking reward dates** — Rewards are taxable when received, not when earned
* **Cost basis** — Rewards affect your cost basis if you later sell stablecoins
* **Jurisdiction-specific rules** — Tax treatment varies by country and region

Porto provides transaction records showing reward payments, which you can use for tax reporting. See [Cost basis tracking](/knowledge-base/platform/developers/tax/cost-basis) for details on tax reporting tools.

## Withdrawing stablecoins with active yield

If you withdraw stablecoins that are earning yield:

1. **Withdraw as normal** — Follow the standard [withdrawal](/knowledge-base/porto/assets/withdrawals) process
2. **Yield continues until withdrawal** — You earn rewards until the transaction confirms
3. **Withdrawal succeeds** — Your stablecoins leave the vault
4. **Yield stops** — Once withdrawn, the coins no longer earn rewards in Porto

If you plan to withdraw, consider the timing to maximize rewards.

## Risks and considerations

* **Market risk** — Stablecoin value can fluctuate (though minimal for USD-pegged coins)
* **Counterparty risk** — If using partner protocols, those protocols carry smart contract and operational risk
* **Regulatory risk** — Stablecoin regulation is evolving; yields may change based on new rules
* **Operational risk** — If a yield program discontinues, rewards will stop
* **Smart contract risk** — Partner protocols have audit and code risk

Porto manages these risks through:

* Vetting yield programs before offering them
* Monitoring program performance
* Limiting exposure to single programs
* Maintaining insurance where available

## Comparing stablecoin yields

Not all programs offer the same rates. To compare:

1. **Check current rates** — Rates change frequently; always check current APR
2. **Understand what's included** — Some rates are gross; others are net of fees
3. **Consider withdrawal terms** — Higher yield might come with longer lock-ups
4. **Evaluate risk tolerance** — Higher yield usually means higher risk
5. **Look at stability** — Consistent, moderate yield is often better than variable high yield

For current rates on available programs, see [Stablecoin rewards rates](/knowledge-base/porto/advanced/stablecoin-rewards-rates).

## Disabling yield

If you want to stop earning yield on a stablecoin:

<Steps>
  <Step title="Open stablecoin settings">
    Go to a stablecoin wallet and tap **Settings** or **Yield options**.
  </Step>

  <Step title="Disable yield">
    Tap **Disable yield**, **Opt out**, or **Stop earning rewards**.
  </Step>

  <Step title="Confirm disabling">
    You may be asked to confirm that you want to stop earning rewards.
  </Step>

  <Step title="Complete biometric authentication">
    Tap **Confirm** and complete Face ID or Touch ID.
  </Step>
</Steps>

Your stablecoin balance remains in the vault — yield simply stops accruing. You can re-enable yield at any time.


## Related topics

- [Stablecoin rewards rates](/knowledge-base/porto/advanced/stablecoin-rewards-rates.md)
- [Stablecoins](/knowledge-base/platform/users/stablecoins.md)
- [Cost basis FAQ](/knowledge-base/platform/users/web-dashboard/cost-basis-faq.md)
- [Changelog](/knowledge-base/porto/changelog.md)