Yields Of The Week: Jan 11 - Jan 17, 2025

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!

Special thanks to our sponsors who make it possible to provide FREE content like Yields of the Week!

🖥️ PYTH | SMARTER DATA FOR SMARTER CONTRACTS

⌛️ HOURGLASS | LEVERAGE AIRDROP FARMING

📈 ⁠iYIELD | YOUR FINANCIAL PICTURE, SIMPLIFIED

🧪 MANTLE | START YOUR RESTAKING JOURNEY TODAY WITH CMETH

🐡 PUFFER FINANCE | LIQUID RESTAKING FOR THE LITTLE FISH

🌔 MOONWELL | THE LEADING LENDING AND BORROWING APP ON BASE

🐐 ⁠GOAT NETWORK⁠ | A BITCOIN L2 TO EARN WITH BTC & DOGE

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

Before we dive in, I want to mention that I often use Vaults.fyi to explore various yields and have gotten to know their team a bit. While we don’t have any formal or monetary agreements, I genuinely appreciate the work they’re doing. On that note, I’m excited to share that they’ve just launched a new app, which features a sleek interface and allows users to deposit directly into these yields. Definitely check it out!

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 (note: this week I’m skipping the MEV Capital Usual USDC vault as it still has exposure to USD0++ and I’m not sure how that will shake out):

22.05% - Convex Curve Lending USDe/crvUSD

21.66% - Gauntlet eUSD Core

21.51% - Convex Curve Lending sUSDe/crvUSD

21.35% - Convex Curve Lending sDOLA/crvUSD

18.53% - Convex Curve Lending pufETH/crvUSD

Full list below:

Bonus: Term Finance introduced a really novel new vault product. The founder of Term Labs, Dion Chu wrote a nice overview for our newsletter here:

Basically, this vault product will allow Term depositors to accrue high passive real yields. The vaults are managed by risk curators and assets will either be in fixed-term loans on Term or deposited in AAVE. The curators will have the latitude to rebalance assets into whatever is the higher rate.

Bonus: Syrup Finance has been netting around 20% APY on USDC or USDT lending. Right now about ~13.5% is real yield and the other ~7% is Drips which can be redeemed for their governance token SYRUP. They have a neat mechanism where if you commit to a longer lending duration you can generate more yield by netting a higher emission of Drips:

Bonus: Always a fan of DeFi Dojo’s work so thought I’d share this as well:

ETH & BTC Yields

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

16.83 - Swaap Lend WETH

7.86%- Iconic Ecosystem WETH

7.58% - Gauntlet Iconic WETH

7.17% - Metronome msETH Vault

6.95% - Euler Prime WETH

Full list below:

Bonus: Tokemak Autopools continue to be a strong source of yield with their flagship AutoETH yielding 9.86% (6.35% base + 3.51% TOKE):

Yield Trading

Pendle - Once again the Berachain + Pendle collab continues to garner a lot of attention and for good reason. Follow the Pendle Intern for all the alpha as they break this down into tangible numbers. The intern is an absolute freak in the sheets:

This is great if you’re bullish on: Berachain, Concrete, Beraborrow, Ethena, Kodiak and Dolomite

Hourglass - Hourglass is supporting a similar cohort of protocols as the above Pendle opportunity with a few differences:

This Hourglass opportunity is great if you’re bullish on: Berachain, Concrete, Lombard, Babylon, Kodiak and Dolomite

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 can’t believe we haven’t written up Gearbox yet, but they have some incredible leverage opportunities under their “farm” tab.

This current strategy is called Sky Savings Rate:

While it’s advertised as 64.47% APR, Gearbox does a good job of default throttling down the leverage once you click on this strategy as shown below. I think even a bit lower than 6.9x would be safer as there is a liquidation price on GHO of $0.9791. GHO has been relatively stable for ~1year, but GHO has depegged below $0.9791 since it’s inception. Keeping an eye on the pool peg would be wise if you enter this farm.

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

• Follow Nomatic on X (Twitter) here

• Follow DeFi Dad on X ( Twitter) here

• Subscribe to The Edge Podcast here

• Watch The Edge Podcast on YouTube here