Yields Of The Week: Oct 12-18, 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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♦️ REDSTONE ORACLES | THE FASTEST GROWING ORACLE FOR DEFI

☀️ SUMMER.FI | THE BEST PLACE TO BORROW AND EARN IN DEFI

🧙‍♂️ MERLIN CHAIN | THE RISE OF BITCOIN'S LARGEST LAYER 2

🔥 FBTC | YOUR GATEWAY TO BITCOIN EARNINGS

🐡 PUFFER FINANCE | LIQUID RESTAKING FOR THE LITTLE FISH

🔁 ORIGAMI FINANCE |  TOKENIZED AUTOMATED LEVERAGE FOR LOOPING

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

The top stablecoin yields this week are coming from Morpho once again as well as Convex and Yearn. Here’s the top yields for the past 7 days according to Vaults.fyi:

ETH/BTC Base Yield

Instadapp Lite - The Instadapp team has demonstrated a robust history of managing assets worth billions of dollars over a five-year period without experiencing any security breaches or exploits. Their Lite vaults provide highly competitive risk-adjusted yields for ETH and BTC:

Pendle

Pendle - The easiest way to get started with Pendle is go to their markets page and filter by BTC, ETH, Stables, Points or RWAs. There’s something for almost everyone here. It’s truly becoming the front page of DeFi yield.

If you sort the markets page by highest fixed APY this week, it’s pretty clear that Ethena is dominating the yields on not only their sUSDe and USDe, but also their ENA governance token and it’s variants:

Another stablecoin in the mix here is Usual’s USDO++ pool that currently has fixed yield of 21.03%. However, with this pool expiring on October 30th, they’ve just launched a new pool on October 17th that will run until March 2025. This new pool is giving out double the pills of the previous one and comes with a little twist. If you’re bullish on Usual Pills and maybe don’t have a big bag to play with you can hold ANY amount of YT tokens and be eligible for a series of massive lotteries. Check out the official comms from their team:

Leverage Looping Yields

Looping can be a very effective leverage strategy to earn more yield, but one must be cautious to monitor borrowing rates, a necessary cost to generate such leveraged yields. It’s also important to know if you’re going after points or real yield when looping.

Contango - Contango is a protocol for trading on leverage via looping built on the liquidity of battle-tested DeFi protocols such as Aave, Compound, and Morpho. There’s two different interfaces when using Contango, Advanced vs Simplified. We prefer use the Simplified UI because it’s much easier to use and understand. It’s worth noting that these positions won’t keep you safe from liquidations so leverage needs to be monitored.

There’s some nice BTCFi yields that can be found here (shown below). These have expiries for the end of December so the yield should still last for a while:

Origami - Origami is an easy one-click app for looping (folding) to create a leverage position, but with automatic position management to avoid the threat of liquidation.

Origami has PT looping vaults for the same BTCFI positions shown above for Contango, but with a little less leverage and liquidation protection. These vaults can be found here (shown below):

SOL Looping on Kamino

Kamino - Kamino is a DeFi protocol that unifies lending, liquidity, and leverage into a single DeFi product suite. Kamino offers a one-click vault product called Multiply that allows you to leverage your exposure to yield-bearing assets like jitoSOL or mSOL. Multiply combines underlying K-Lend mechanisms like eMode and kToken collateral to offer powerful yield strategies and the end result is users can boost yield exposure up to 5x with a single click, after depositing a single collateral such as jitoSOL to earn double-digit APY (see examples below for jitoSOL/SOL and mSOL/SOL)

To access these Multiply boosted yields, go to the Kamino Multiply app here.

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

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