> ## 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.

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.