T-Bill Yield vs DeFi Stable Lending
**T-bills** offer government-backed yield with simple tax reporting. **DeFi stable lending** can pay more but adds smart-contract, peg, and platform risk—plus more complex taxes.
Step by step
1. Net of tax
T-bill interest is state-tax exempt in many states; DeFi may be ordinary income.
2. Stress liquidity
Can you exit in one block if rates spike or peg wobbles?
3. Compare 90-day APY
Use same horizon—don't annualize a one-week promo rate.
T-bills vs DeFi stable yield
Higher DeFi APY often compensates for tail risk—not free money.
- T-bills: Sovereign credit risk; brokerage or fund access; lower headline yield.
- DeFi lending: Higher APY potential; contract and counterparty risk.
Use our calculators
Common mistakes
- Chasing APY without reading audit history
- Ignoring gas on small balances
FAQ
Are stablecoins FDIC insured?
No—only traditional bank deposits within limits.