Crypto exchange OKX said it is offering 4.1% yields on USDG in weekly payouts, without staking lockups. OKX is responding to intensifying competition for stablecoin dominance, it said in an emailed announcement on Tuesday. USDG is minted by stablecoin issuer Paxos and is backed 1:1 by U.S. dollars. Stablecoins, crypto tokens pegged to the value of a traditional financial asset such as a fiat currency, now underpin much of the crypto economy, powering payments, cross-border transfers, and DeFi strategies. Their importance lies in maintaining a value consistent with a fiat currency, meaning users can hedge against more volatile cryptoassets without having to remove funds from the crypto ecosystem entirely.