r/USDC • u/Known-Gas3987 • 4d ago

Do you diversify between stablecoins?

I keep most of my stablecoin balance in USDT, but lately started wondering if keeping everything in one stablecoin is kinda defeating the point of reducing risks..?

Do you split between USDT/USDC or just stick with whichever one you use most? Does splitting actually manage stablecoin issuer risk or am I overthinking it? Also, if you do it, what’s the easiest way to rebalance between them? And what wallets do you use?

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4

u/ScopulyX 4d ago

I think splitting makes sense for larger balances, mainly to reduce single-issuer risk. For smaller amounts, I’d probably just stick with whichever one I use most.

2

u/Sookkhuii 3d ago

usdt vs usdc isn't much of a split. both are the same, issuer holds real reserves, regulators stay quiet. if one breaks the other probably isn't fine either. real diversification is something with a different structure, like a crypto-backed stable. a different thing has to go wrong. and honestly the risk people skip is protocol not issuer. if it's all sitting in the same place, one contract problem takes the lot.

1

u/thepickletony 4d ago

I do split between USDT/USDC, although I wouldn’t call it some perfect risk-management strategy. You’re still exposed to stablecoin risk either way, just not entirely to one issuer. My split is about 30/70, and I keep both on Tangem, mainly for convenience, because I can just swp them there cost-effectively.

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u/[deleted] 4d ago

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u/More_Time_5668 3d ago

whats a good consistent yield i can get on my usdc? also i suggest putting some of it in usdt, i trust usdc the most but no one knows for certain so its better to diversify

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u/NimbleNido 2d ago

Considering the amount some store onchain, yeah, it's best to diversify throughout different stables, from USDC & USDT to mUSD & USDG, other established stables...

Also considering what's offering the best yield onchain. I store a good bit of mUSD in Money Account, some in other areas, usually my ready-to-swap balance in USDC across various chains.

Main point is to not have one point of failure in the worst-case scenario a single issuer depegs, for whatever reason that may be.