Yields Of The Week: Dec 21 - Dec 27, 2024

Welcome to Yields of the Week! Every Friday, we spotlight the top DeFi yields across the crypto landscape, focusing on opportunities that are not just the highest APYs but also sustainable and unique opportunities. Whether you're new to DeFi or a seasoned degen, our goal is to help you navigate the yield farming space with confidence. Expect hands-on tutorials, expert strategies, and everything you need to master the digital asset space—starting with the best yields the market has to offer. Let’s dive into this week’s picks!

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Before we get started, this is never a recommendation or endorsement to buy any token(s) mentioned, and here’s a few risks to consider:

• Smart contract risk in any underlying protocols

• Pool size and liquidity depth

• Front-end spoof attack on an app frontend

• An economic design exploit

• Colluding signers on any multisig

• Systemic risk across DeFi, including stablecoin depegs

Stablecoin Yields

Here’s links to the top 5 yielding stablecoin pools for the past 7 days according to Vaults.fyi and what we could dig up:

36.50% - Apostro Resolv USDC

33.74% - DAI-2 yVault

29.95% - Convex Curve Lending sDOLA/crvUSD

28.43% - Gauntlet eUSD Core

27.87% - Smokehouse USDC

Full list below:

Bonus: I think this marks 5 weeks in a row where where we’ve highlighted Neutral Trade. This vault has consistently yielded between ~90% to ~140% on USDC over this time period. This week it’s still looking great:

Bonus: Usual is another repeat entry for YOTW. USUAL has some incredible dynamics, but I want to call out that this yield is denominated in a fairly novel utility token (USUAL) that is disinflationary and impacted positively by increasing protocol cashflows. Yields for the stablecoin and stable pairs are 29% - 48% APY right now:

Bonus: Coinshift has had consistent 35% - 40% yield on thier new csUSDL token. One thing I’ll call out is that some of the rewards APY is coming from MORPHO token and some is coming from future SHIFT token (not live yet). Check out this thread for details:

Bonus: Ether.fi’s UltraYield Stablecoin Vault comes with ~30% yield + Veda and Ether.fi points. Check out the details of how this vault works under the hood below:

Bonus: If you want easy set and forget stable yield on a fixed term (no yield fluctuations), Term Finance is a great option. For example they have a January 10th maturity offering 16.75% yield right now that you can easily click into under their “Earn” tab.

Bonus: This last one is still quite early and they’re only accepting whitelisted depositors, but we know a little bit about the team and think they are building something pretty interesting. It’s called Avant Protocol and it’s essentially tokenized DeFi strategies that accrue to a yield bearing token called avUSD. In this early access stage they’ve been achieving ~49% APY:

ETH & BTC Yields

Here’s links to the top 5 yielding ETH and BTC pools for the past 7 days according to Vaults.fyi:

20.34% - Swaap Lend WETH

17.17% - Apostro WBTC

14.89% - Apostro cbBTC

12.06% - Euler Prime WETH

9.62% - Euler Prime TBTC

Full list below:

Bonus: Once again, Neutral Trade has some of the highest yields in all of DeFi on majors right now:

BTC Super Staking - 28.11%

ETH Super Staking - 27.61%

SOL Super Staking - 32.85%

Pendle

The biggest news to me this week on Pendle was the addition of a new Reslove Labs pool. We’ve written up Resolv’s yields previously on YOTW and being on Pendle will no doubt supercharge their TVL. Some bit of alpha below if you want to partake in these Pendle YTs:

Leverage Looping Yields

Looping can be a very effective leverage strategy to earn more yield, but one must be cautious to monitor borrowing rates, and liquidations which are a necessary cost to generate such leveraged yields (we don’t recommend max leverage). It’s also important to know if you’re going after points or real yield when looping.

I wanted to write up a new protocol this week as Euler has dominated this spot for a few weeks. One that stood out to me was a strategy on a protocol that’s new to me called Dtrinity where sUSDe loopers can get up to ~160% APR. Dtrinity tag themselves as “the 1st subsidized lending protocol in DeFi” and are live on Fraxtal (and appear to have a relationship with the Frax team). A bit of an extra disclaimer here as I haven’t tried this out myself so exercise caution. Check out this great thread explaining this strategy from bueno pues on X:

That’s all for now, thanks for checking it out!

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