Stablecoins like UST, USN, USDD have a very tricky link to the dollar and the collateral pool, in the form of a native token of a particular blockchain, be it LUNA, NEAR, TRON, etc. Such projects offer or are about to offer 20-30% per annum in staking these stablecoins. Not a bad interest rate, is it? But will these projects be able to provide such a high interest rate all the time, and won't that provoke a cascading collapse of both the stablecoins, with the loss of the peg and a cascading collapse of the native tokens that act as reserve collateral?
Good question, I don't think that they can sustain that huge returns per annum. It was obvious that they got that numbers to attract investors. So they have to somewhat bring it down to a minimum and not exaggerate otherwise if might affect the market negatively as you have said. Maybe the high payout will not bring any good and on the contrary they could have been running on reserves already.