Topics Stablecoin

Make your USDe work for you: A guide to earning rewards

Intermediate
Stablecoin
Apr 9, 2025

USDe isn’t just another stablecoin — it’s a synthetic dollar that offers real rewards when held on Bybit. Whether you're a DeFi user or someone who prefers centralized platforms, USDe lets you earn passive income via staking or simply holding it in your exchange account. In this guide, we’ll show you how to make your USDe work harder for you.

Key Takeaways:

  • USDe uses a smart delta hedging strategy, essentially placing offsetting trades on derivatives markets to maintain price stability.

  • You can earn yields with USDe in two ways — staking USDe via Ethena, and holding USDe on Bybit.

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What powers USDe’s yield?

Unlike traditional stablecoins (i.e., USDT or USDC), USDe isn’t backed by fiat reserves. Instead, it uses a smart delta-hedging strategy, essentially placing offsetting trades on derivatives markets to maintain price stability. This unique model doesn’t just keep USDe pegged to the dollar — it also creates opportunities to generate rewards from real market activity.

How to earn yields with USDe

In addition to offering price stability, USDe allows users to earn yield through two primary mechanisms: staking via the Ethena protocol for sUSDe and passive income through centralized exchanges such as Bybit.

1. Staking USDe via Ethena

Users can lock their USDe on the Ethena platform and receive a staked asset called sUSDe. This staked token accrues yield and functions as proof of deposit.

  • Users receive sUSDe as a proportional receipt of the value of USDe locked relative to sUSDe.

  • Rewards are automatically distributed every eight hours to sUSDe. The value of sUSDe increases in USDe terms without you having to do anything.

  • As of Q2 2025, the annualized yield for staking USDe stands at approximately 6% after an average of 18% in 2024.

  • There is a 7-day unstaking cooldown before users are able to withdraw their USDe from sUSDe.

Note that due to regulatory considerations, staking is only available in specific jurisdictions.

2. Holding USDe on Bybit

For users who prefer not to stake via smart contracts, you can still generate yields on your USDe holdings simply by holding the funds in your Bybit Account.

  • Income is calculated based on the minimum USDe balance from hourly snapshots.

  • Daily rewards are automatically distributed to the Fund Account under your Main Account at 6AM UTC daily.

  • Profits from Subaccounts are credited to the Main Account.

  • The APR is adjusted dynamically based on the current yield environment.

  • Funds remain liquid and can be traded or withdrawn at any time.

  • Yield is sourced from Ethena’s delta-neutral strategies, including perpetual futures funding rates and returns on reserve assets.

  • Exclusions: USDe used as collateral in pledged borrowing for staked savings or Copy Trading Pro subaccounts does not qualify for yield.

Bybit frequently offers promotions for USDe, such as enhanced APR.

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Closing thoughts

USDe stands out in the stablecoin market due to its unique blend of capital efficiency and automated risk management. The use of delta hedging enables the Ethena USDe protocol to maintain stability without overcollateralization, while its off-exchange settlement and reserve fund architecture enhance the system’s security and resilience.

For users, USDe offers both stability and earning potential. Whether used with DeFi staking or to generate passive income on Bybit, USDe provides a versatile and yield-generating alternative to traditional stablecoins.

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