STBL Yield Source Breakdown

STBL uses tokenized real-world assets (RWAs) as collateral. These assets are carefully selected to ensure steady yield, low default risk, and strong legal enforceability. There are three main sources of yield:

Treasury Bills (T-Bills)
Short-term U.S. government debt (typically 3 to 12 months maturity). Considered virtually risk-free. These instruments generate reliable, low-risk returns in the 4–5% APY range.

Private Credit Instruments
Short-duration loans to qualified borrowers (e.g. SMEs or regulated lenders) backed by strong underwriting. These carry slightly higher credit risk but offer higher yield—often 10–12%—while still being managed by approved financial partners.

Each type of asset is deposited into a corresponding vault, and its performance determines the yield associated with the YLD tokens users receive.