Step-by-Step Guide for Stablecoin Staking

Content

• What Is Stablecoin Staking
• Which Stablecoins Does CoolWallet Support for Staking
• Instructions
• Staking Mechanism
• How to Stake Stablecoins
• How to View Staking Status
• How to Unstake
• Stablecoin Staking FAQs

What Is Stablecoin Staking

Stablecoin staking allows asset holders to earn income by lending their stablecoins. You can lend stablecoins (such as USDT, USDC, DAI, etc.) to decentralized finance (DeFi) lending platforms, providing them with liquidity and earning interest paid by borrowers.

👉 Learn more here

Which Stablecoins Does CoolWallet Support for Staking

		CoolWallet Pro	CoolWallet Go	CoolWallet S	CoolWallet HOT
	USDT on Ethereum	O	O	O	O
	USDT on BSC	O	O	O	O
	USDT on Polygon	O	O	X	O
	USDC on Ethereum	O	O	O	O
	USDC on BSC	O	O	O	O
	DAI on Ethereum	O	O	O	O

Instructions

Staking Mechanism

Rewards are based on staking amount
Staking rewards are calculated based on the amount of stablecoins you stake. The more you stake, the higher the potential rewards.

Calculated per address total balance
If you stake multiple times using the same address, the new amount will be automatically merged with your existing stake, and rewards will be calculated based on the total balance.

DApp approval is required before staking
Before staking, you must approve the DApp to access your stablecoins. This authorization is required to proceed with the staking transaction.

Rewards are auto-compounded
During the staking period, rewards are automatically added to your principal, creating a compounding effect. No manual claim is required.
Rewards start accumulating immediately after staking and are continuously added to your total staked amount.
The annual percentage rate (APR) may fluctuate depending on supply and demand in the DeFi lending market.

Flexible and adjustable at any time
You can add or unstake (withdraw) your stablecoins at any time, as long as the minimum requirement is met. Partial unstaking is supported, and rewards are dynamically calculated based on your current staked balance.

How to Stake Stablecoins

Step 1. Go to the Earn page, switch to the Stablecoins tab, and select the token you want to stake.

Step 2. Tap Stake and enter the amount you want to stake.

Step 3. Confirm the approval amount and complete the approval transaction.
※ Approval allows the platform to use your tokens for staking. Smart contracts typically default to unlimited approval. You can customize the approval amount in CoolWallet.

Step 4. After approval, confirm your staking amount again. On the confirmation page, you will receive a staking receipt (e.g., cwAaveUSDT) representing your staked amount.
This receipt will not appear in your wallet’s main asset list, but is used to track your staking status within the CoolWallet App.

Step 5. Complete the transaction to finish staking your stablecoins.

How to View Staking Status

You can check your staking status in the following locations:

• Stablecoin Manage Stake page
• Earn tab in the Wallet page

Your staking status displayed is based on the staking receipt you hold (e.g., cwAaveUSDT).

How to Unstake

Step 1. Go to the Manage Stakes page, tap Unstake, and select the address used for staking.

Step 2. Enter the amount you want to unstake. On the confirmation page, you will see the corresponding stablecoins to be redeemed from your staking receipt.

Step 3. Complete the transaction, and the stablecoins will be returned to your wallet.

※ Notes

• If you partially unstake, the staked amount shown on the management page will decrease accordingly, and the returned assets will appear in your wallet page.
• If you fully unstake, your status will return to a non-staked state.

Stablecoin Staking FAQs

By supplying your stablecoins to DeFi lending platforms as liquidity, borrowers pay interest, which becomes your reward.

No. The annual percentage rate (APR) fluctuates based on market supply and demand, so rewards may vary over time.

No manual claim is required. Rewards are automatically accumulated and added to your principal, creating a compounding effect.

Yes. Currently the minimum is approximately 1.5 stablecoins.

Yes. You can partially or fully unstake at any time, as long as the minimum requirement is met.

Stakes from the same address are automatically merged, and rewards are calculated based on the total staked amount.

It represents your staked assets and is used to track your staking balance and status, as well as to redeem your funds when unstaking.

Staked assets are represented as receipts, so they do not appear in the standard asset list. You can view your staking status in the Earn or Manage Stake page.

After the unstaking transaction is completed, funds will be returned based on blockchain confirmation time. The actual time depends on network conditions..

The main risks include smart contract vulnerabilities and potential interruptions in DeFi platform services. CoolWallet integrates with AAVE, a DeFi platform whose smart contracts have undergone multiple audits and tests to ensure safe operation. Learn more.

Updated: Mar. 18, 2026
Originally published: Jul. 26, 2024