Are you talking about the launchpad on Centralized exchange? Yes it can be profitable especially if you have large amount of funds. Exchanges do offer stable coin to stake on which is somehow safe on volatility but high APY comes from the more volatile token such as staking the token that is being rewarded itself. If you have the courage and trust on the token, going for the higher APY would be the go to but if you just want to play it safe, staking stable coin is good. I tried doing it with just $200 on my exchange account and the reward that I got is no more than 10$ in value, it's quite good rather than making it sit on your account.