Liquidium advertises 3.164% APY on USDC supplied on Ethereum

Liquidium is promoting a variable annual percentage yield (APY) of 3.164% for users supplying USD Coin (USDC) on Ethereum, inviting stablecoin holders to earn returns on funds they would otherwise leave idle.

The offer centres on flexible supply, with Liquidium stating that users can supply USDC at any time and track activity on-chain. The displayed rate is variable, meaning it should not be treated as a guaranteed return or a fixed rate over time.

The yield is generated through Liquidium’s lending pools, where borrowers pay interest on USDC loans and suppliers receive a share of that interest. According to Liquidium’s documentation, supply rates change with pool utilisation and market conditions, so the return may rise or fall as borrowing demand and available liquidity change.

The advertised 3.164% figure should therefore be understood as the rate shown in the supplied promotional graphic, rather than a guaranteed annual return. Liquidium’s live USDC market page displays current supply and borrowing data, which users should check before making a deposit.

Although stablecoins such as USDC are designed to track the US dollar, supplying them through a decentralised finance platform carries risks. These can include smart contract vulnerabilities, changes in available liquidity and delays or restrictions on withdrawals. Liquidium advises users to review the current rate, network, fees and liquidity before supplying funds.

For users considering the offer, the key factors are the current APY, the conditions for withdrawing funds and the risks associated with lending through a blockchain-based protocol. The advertised rate provides a snapshot of the potential return, not a promise of future earnings.