When people talk about “staking” in crypto, they usually mean locking tokens to secure a proof‑of‑stake network and earn native rewards. Stellar operates differently as it uses the Stellar Consensus Protocol and not PoS. In this case, there’s no built‑in staking rewards mechanism for Stellar. Still, many XLM holders seek yield-generation strategies to make their assets productive rather than sitting idle.
Earning Rewards via DeFi on Stellar
After buying XLM, you can now use your Stellar to earn rewards. Rather than traditional staking, Stellar users earn rewards through decentralized finance, specifically by providing liquidity on Stellar’s native DEX and AMMs.
Providing Liquidity in Stellar DEX Pools
Stellar’s built‑in AMM functionality lets users deposit a pair of tokens into a pool and earn 0.3 % of trading volume proportional to their share. When you contribute to these liquidity pools, you receive liquidity provider tokens that auto‑accrue your fee share. It’s a hands‑on way to generate yield without centralization.
Popular AMMs & Protocols (e.g. Mobius, StellarX)
StellarX offers a seamless interface for exploring AMM pools, adding liquidity, and tracking fees in real-time. Mobius, though initially designed for stable swaps, enables users to participate in AMM-style offerings on Stellar and similar chains. Ultra Capital’s yXLM, previously known as Ultra Stellar yXLM, offers around 2 % APY.
Calculating LP Yields & Impermanent Loss
Liquidity providers earn fees based on their share of total pool liquidity and trading activity. However, impermanent loss may occur when the price of one asset diverges from that of its paired asset and reduces returns. Providers need to evaluate expected trading volume and fee revenue against potential value erosion. Careful estimation and calculations should be exercised to aid in making informed decisions.
Custodial “Staking” Services & Yield Programs
For those prioritizing ease over control, centralized services and CeFi platforms simplify earning yield on XLM staking.
Centralized Exchanges Offering XLM Savings (e.g. Binance, Crypto.com)
XLM is supported in Binance Earn, where holders can choose from flexible or locked-term savings products to earn interest. Crypto.com likewise offers interest-bearing options for depositing XLM, with various tiers of rates depending on lock-up period and amount. YouHodler offers flexible XLM savings with an APR of up to 9%, depending on promotions and crypto-collateral tiers.
CeFi Platforms & Anchor Rewards
CoinLoan allows users to earn up to 7.2% APY on XLM via their Interest Account. The platform features monthly compounding, no lock-up period, insurance protection, and flexible withdrawal timelines. Additionally, algorithmic market-making strategies are employed to offer approximately an 8% APY on XLM deposits in EarnPark. Their bot trades across centralized and decentralized exchanges to generate yield, with daily compounding.
APYs, Lock-up Terms & Withdrawal Conditions
Here’s a comprehensive comparison table of XLM yield programs, including updated APYs, lock-up terms, and withdrawal conditions for popular centralized platforms:
| Platform | APY (XLM) | Lock-Up Terms | Withdrawal Conditions |
| Binance Earn | Up to 2% | Flexible or fixed-term options | Flexible or locked; APR displayed on Earn page |
| Crypto.com Earn | Up to 8% p.a. | Flexible, 1-month, 3-month | Flexible anytime; locked until term end |
| YouHodler | Up to 9% APR | Fully flexible | Withdraw anytime; weekly compounding |
| CoinLoan | Up to 9.2% | Flexible; fixed terms (1-12 months) | Flexible withdrawals; fixed payout monthly or term end |
| EarnPark | Up to 8% APY | Flexible (automated strategies) | Anytime withdrawal; daily compounded yield |
| Nexo | 4-8% APY | Flexible & may offer lock-in for bonus | Flexible withdrawals; daily payouts |
| Nebeus | Up to 13% APY | Lock-up options (1-4 months) | Withdrawable after the term ends; daily payouts |
Risks, Fees & Best Practices
With any yield strategy, weighing rewards against risks and costs is key.
Diversification and Exit Strategies
Diversifying XLM holdings across multiple platforms helps reduce dependency on any single provider or risk exposure. As investors, you should safeguard your capital against unexpected platform failures or abrupt rate changes by splitting assets. For example, one portion can earn high APY on YouHodler, while another is kept flexible on Binance Earn to maintain liquidity.
Also, having a structured exit strategy can help protect profits and reduce emotional decision-making. Be aware of lock-in periods or withdrawal delays, as some platforms may implement these. Always set alerts or notifications for interest rate updates, policy changes, or security incidents so you can act fast and move your funds if terms degrade or threats emerge.
