🔎How to find high DeFi yields
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Liquity enables earning 8-10% APR on stablecoins generated in a sustainable way. Put your capital to work with Liquity!
GM friends.
Here’s what I’ll cover today:
🔎How to find high DeFi yields
📊 Crypto chart of the week
🗞️ The latest DeFi news
🔎How to find high DeFi yields
I’ve covered several stablecoin yield opportunities on X recently, but I thought it’d be helpful to also show you how you can find them yourself.
Even though the market conditions haven’t been great lately, there are still plenty of decent yield farms as long as you know where to look.
In this post, I will cover a lesser-known strategy I’ve been using to find emerging DeFi ecosystems with attractive incentive programs.
Let’s dive in:
As some of you may know, DeFiLlama has a Chains dashboard where you can easily see the fastest-growing blockchains by TVL.
How is this dashboard related to yield farming? Well, it isn’t directly related.
But in some cases, the blockchains seeing a rapid increase in TVL are gaining traction thanks to high ecosystem incentives you can take advantage of.
Here’s an actual example of how I use the DeFiLlama Chains dashboard for yield farming purposes:
Sort the blockchains shown on the dashboard by “DeFi TVL”
Start by looking for chains with the largest positive 1-month TVL change
The first one that caught my attention was Provenance, which saw a 57% TVL growth. When I clicked on it, I only found a single CeDeFi app built on it that didn’t seem to offer any yield farming incentives, so I moved on and started looking for other chains with positive TVL changes
The next one that stood out is Mantle, which had a 175% TVL growth in the past 30 days. Once you click on it, you realize that this is mostly thanks to AAVE’s growth on Mantle, where most of Mantle TVL is deposited
If you go to the AAVE website and select the Mantle market, here you can get 4.28% APY on USDT and 6.89% APY on GHO stablecoin, due to Mantle’s new MNT incentive program, as you can see in the image below
4.28%-6.89% APY on stablecoins might not seem like a huge yield, but it is significantly higher than what you can get on AAVE on other blockchains.
I’d say that this is a good yield if you’re looking for a low-risk opportunity.
Yet you can also use DeFiLlama’s Chains dashboard to find higher yields if you’re open to taking more risks. I will give you a few examples next.
But before we continue, here’s an overview of Liquity:
Together with Liquity
Earn real yield on your stablecoins
There are lots of high-yield opportunities in DeFi.
But the problem is that most of them rely on opaque yield-generation strategies and are based solely on unsustainable token emissions.
That’s where Liquity comes in.
Liquity is one of the few truly decentralized stablecoin protocols that offers 8-10% APR generated in a fully sustainable way.
Here’s what makes Liquity stand out:
Its stablecoin called BOLD is backed only by ETH and ETH LSTs collateral
BOLD offers pure on-chain yield from liquidation fees and interest rates
Its smart contracts are immutable to minimize the attack surface
You can earn ~8% avg APY on sBOLD/yBOLD pool in the form of real yield + exposure to airdrops from 15+ Liquity forks
What’s more, BOLD received an A- rating from the rating agency Bluechip, placing it above USDC and DAI due to its decentralization and transparency.
With Liquity, you can earn a high yield in a trustless, decentralized way.
Explore various yield strategies with Liquity here.
How to find high DeFi yields (Part 2)
After Mantle, the next blockchains that have seen significant TVL growth over the past 30 days are Katana, Ink, and Monad.
All of those have a DeFi incentive program with rewards for yield farmers, which is why they have surged in TVL lately.
Now, as a general rule of thumb, this is something important to keep in mind first:
→ On tokenless blockchains (Katana, Ink), you can earn rewards primarily in the form of points or locked tokens, which you can’t sell until the TGE happens. Those are worth farming only if you believe their token will have a high FDV at launch
→ On the blockchains that already have a token (Monad), the farming rewards are generally a bit smaller, but they can be sold at any point, so the yield you are earning is much more predictable, although it is still dependent on the price action of the farming token, unless the yield is generated in a sustainable way
I’ll focus on the yield opportunities on Monad this time, as this one has liquid farming $MON rewards that you can claim and trade for other tokens at any point.
Since I saw Monad’s TVL was growing quickly according to DeFiLlama’s Chains dashboard, I decided to explore its ecosystem more closely.
The process is straightforward:
Go to the Monad chain page on DeFiLlama
Check out its top ecosystem protocols by TVL (Accountable, Morpho, Upshift, Curvance, etc.) there
Visit their websites
Look at the top yields they are offering and how they are generated
For example, in this way, I found these interesting stablecoin yields (most of which are subsidized with MON token incentives):
12.37% APY by depositing USDC into Hyperithm Delta Neutral Vault on Accountable, which deploys capital into several delta-neutral strategies like buying Pendle PTs, providing liquidity to lending apps, and funding rate arbitrage
11.33% APY by lending AUSD stablecoin to the earnAUSD market on Curvance, a money market on Monad
Up to 25.77% APY by depositing USDC into Midas’s mEDGE leveraged farming pool on Gearbox (note: this is a high-risk strategy, though, as it requires using leverage to achieve this high yield)
This is the base APY without points rewards, which you also get from most of these yield opportunities, but the value of points is hard to determine in advance.
In the same way I showed you for Mantle or Monad, you can use DeFiLlama’s Chains dashboard to also find other DeFi ecosystems with attractive yield opportunities.
All you have to do is monitor which chains/dApps are surging in TVL and try to determine why this is happening.
Chances are you’ll find some interesting DeFi yields in this way.
I hope you found this guide helpful 🫡
Chart of the week
The value of tokenized assets on Ethereum surpassed $15 billion for the first time
Crypto meme of the week😂
The latest developments in DeFi
Solana announced the launch of on-chain IPO shares via Backpack
ACI, a major Aave DAO delegate, is leaving AAVE after disputes with AAVE Labs
Kraken became the first crypto company to gain access to FED’s payment system
INFINIT launched the Prompt-to-DeFi Strategist Challenge, a competitive program for creators to build verified DeFi strategies
Hyperliquid community members proposed HIP-6 - a permissionless token launch auction mechanism for Hyperliquid ecosystem tokens
Opinion and Paradex are launching their tokens today
Starknet introduced strkBTC - a wrapped Bitcoin with built-in privacy capabilities
Trump criticized banks for trying to ban stablecoin yield
Steakhouse launched a new set of curated stablecoin vaults for distinct risk profiles
MetaDAO launched Futardio - a new permissionless launchpad on Solana
Resolv’s Season 4 airdrop claim went live
Balancer V3 went live on Monad
Lighter launched the LIT Fee Credits program, enabling market makers to pay with LIT for fee discounts
AAVE’s proposal to expand to Monad and launch a $15M incentive program is live
USDai raised $19.4M during its ICO
That’s all for this week!
Until next time,
The DeFi Investor
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