Savings Strategy: Passive Rewards vs Staking (10% on USDC at Blockchain??)

[frnk98]

I am interested in conservative options as an alternative to savings accounts at fiat banks. I understand this often involves the risk that "not your keys, not your coins" and would be looking for reputable exchanges, not something new and unheard of.

I know Coinbase offers an interest rate for holding USDC but it's not better than I can find at many fiat banks. Binance staking sounds reasonable because they keep your coins in (their own) cold wallet, and it looks like staking SOL is a reasonable conservative 5% right now, except SOL itself is of course volatile (and Binance staking fee is as much as 35%)

Then I saw this:
https://www.blockchain.com/en/earn
They have many options, among them a 10% reward for passively holding USDC/USDT/Dai. What's very attractive about this is:

• 10% is very high for savings these days
• USDC/USDT is not volatile
• Blockchain.com has been around longer than most, so, like them or hate them, I doubt they'd be stealing your coins or the most likely to suffer a hack

What I don't understand is where this reward is coming from, what kind of scheme this is. I think Coinbase offers interest on USDC as an incentive to bolster adoption of USDC itself as well as attracting new customers to their platform. But this rewards program from Blockchain.com is not clear to me. Does anyone know more about that? Are there other reward systems like this from reputable exchanges/companies?

Edit: In the passive rewards from Blockchain.com, your crypto is lent to other investors, and you get 10% while they earn themselves presumably more. Blockchain.com's rewards program is "At this time, residents of Canada, Italy, Japan, Kosovo, Pakistan, Palestine, Russia, Swaziland, Taiwan, and the United States are not eligible to earn rewards."  --- So my search continues

[bitbollo]

there are even bookmakers / casinos that are actually offering passive reward from bitcoin and other cryptos (up to 15% yearly!) - with no bonding period.
It's interesting as process and for sure it will become more and more common . I think this can become also the "reason" that will bring new users to bitcoin (normal people)... one of the critic towards bitcoin was related to absence of earning/dividend ...

These revenues can come from several sources but these must be explained directly by them. They can just loan your coin...using for trading and so on...