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Where the Principal Can Shrink
In the phrase "stablecoin yield", the part people skip is what the principal is denominated in. This thread isolates the cases where the principal itself moves.
"Earn products are not principal-protected" is printed on every product page, but what that means and which tier makes it real is rarely spelled out.
- Stablecoin Yield: Where Principal Can ShrinkFlexible, Locked, staking and Dual Investment taken apart: where the interest comes from, and which of them hands your principal back as another coin.
- Dual Investment Isn't Savings, It's an OptionWhere the high APY comes from, why you can be converted into another coin at settlement, and who this product actually suits. The mechanism in plain language.
- What Has Actually Happened When Stablecoins DepeggedUST to zero, USDC at 0.87 on a banking event, BUSD ordered to stop minting, then USDe and xUSD in 2025. Five real events, five different ways to fail.
- Three Things Every High-Yield Scam Has in CommonWhy a 30% stablecoin APY is almost never safe. A filter you can run yourself: where the return comes from, how exit works, and how it grows.
The tier-by-tier rules are in Product Terms; the depegs that actually happened are dated in the depeg timeline.