Yield-bearing stablecoins pay interest to holders. They are typically backed by either a basket of assets, including other stablecoins, fiat currencies, and government bonds, or simply emit off-chain yield to on-chain token holders (RWAs). In many cases, the backing helps to maintain the stablecoin’s peg to the US dollar, if it isn’t maintained algorithmically. Analysts say YBSs have the potential to fuel a DeFi Revival.