DeFi Yields
Best Stablecoin Yield Opportunities
Markets are uncertain right now.
Many people are moving to stablecoins right now. And with all the juicy yields available right now, farming them is one of the best strategies.
Here are some of the best yields available right now on different chains.
#1. Hyperbeat USDT Vault: ~15-70% + points on HyperEVM.
Hyperbeat is a yield farming protocol on HyperLiquid.
It'll deploy assets across the HyperEVM ecosystem to earn yield for depositors.
It has several types of offerings. Right now, there are some excellent opportunities in the "Earn section".
- It's USDT vault offers ~70% supply APY.
- The USDC vault yields ~28% supply APY.
Now, USDT has started consistently yielding ~70% APY since the recent crash.
But it won't always be there. Historically, it has been consistently yielding >10%.
Additionally, the vault also farms a lot of points on many tokenless protocols on HyperEVM for you.
#2. Solstice USX Strategies: ~5% + points on Solana
Solstice is the hottest stablecoin project on Solana right now.
I've already talked about it in detail in the last sponsored deep dive. It's a Solana-native project that earns yield by deploying institutional-grade, delta-neutral strategies.
You can earn yield by depositing in its YieldVault. Right now, it's showing ~5% APY. But over the trailing 12 months, it's been 16.2%.
Additionally, you can earn points for the Solstice airdrop. Apart from just holding USX, there are many other ways to earn points for an airdrop, which can be very juicy.
#3. sUSDai PT on Pendle: ~30% (annualized) on Arbitrum
Pendle is a yield trading platform that we've covered multiple times.
It splits yield-bearing assets into the Yield Token (YT) & Principal Token (PT). If you aren't familiar with it yet, our Pendle Series on TDE Pro is a great resource.
USDai is a new stablecoin that has gained some mindshare in CT. It loans out money to AI companies with GPU collaterals to earn yield. sUSDai is the staked version of that.
On Arbitrum right now, you can earn guaranteed APR of ~30, which is really high for a fixed yield opportunity.
#4. sUSDs Looping on Gearbox on Ethereum
Sky is the rebrand of MakerDAO, the OG decentralized stablecoin. USDS it's a stablecoin, and sUSDS is the staked version of that.
Gearbox allows users to leverage strategies they approve via undercollateralized loans. They present it in a very easy-to-understand UX. Looping sUSDS is one of the strategies they approve.
On Ethereum, a 5x leverage on $1k, which is relatively safe for a stablecoin on this strategy, will yield you ~22% APY. You can take more leverage and earn even more as well.
Here's the link to the strategy.
#5. Supply HONEY on Dolomite on Berachain
$HONEY is the native stablecoin on Berachain. And Dolomite is the leading lending protocol on the chain.
The APY for supplying HONEY on Dolomite right now is 21%. The average for the past 31 days is >31%.
You should note that most of the yield on HONEY will be in oDOLO, which is an option token. Once you claim them, you must redeem them for veDOLO or instant exit for a fee to receive liquid/sellable rewards.
Dolomite has other attractive strategy positions as well.
This is the newsletter version of our weekly section on DeFi yields in TDE Pro. For this week, there are two more lucrative yield opportunities. If you want to access that as well, join TDE Pro here.
Sponsored by Solstice
Solstice: Solana's Institutional Grade Stablecoin
Solana is the best high-performance chain.
But it has one major gap: no Solana-native stablecoin.
Enter Solstice Finance.
- USX is their 100% collateralized USD stablecoin.
- eUSX is the yield-bearing version of USX. You get it by depositing USX into YieldVault.
- SLX is their upcoming protocol token. (You should join their points program to qualify for a juicy airdrop. Use our code: ---)
Unlike others, Solstice doesn't show fake yield with governance tokens at inflated valuations.
They're earning yield using a delta-neutral strategy that they've been privately executing for the past 25+ months. In that period of live trading, they've
- made 21.5% returns in 2024.
- 16.2% over the trailing 12 months.
- Positive returns in 100% of all months.
Everyone is racing to get a piece of this institutional-grade yield. In just one week since launch, TVL has already surpassed $190M.
Their Flares points program also has huge potential. Join fast to maximize your SLX airdrop.
Market
After 10/10: State of Crypto Market
Since the October 10th (10/10) disaster, the market's been chopping sideways.
We've already covered what happened on that day. (Click here to read our newsletter coverage. Join the TDE Pro for a longer, in-depth report.)
What should we expect going forward?
There's a lot of uncertainty. This newsletter has been bullish in the short-to-medium term. But the bears have a lot of legitimate arguments.
Let's review some of them.
#1. Liquidation & Sentiment
Firstly, ~20B was liquidated in the 10/10 disaster. That was the largest liquidation event in crypto history by a huge margin. The 2nd rank is only ~$10B.
That's just not something that happens in a bull market.
And it has shaken the market confidence. The market isn't supporting sustained bids now. With each single rally, people are selling their positions.
In addition, we don't know if any big crypto companies have gone underwater due to this. The cycle had many such cases. This is another source of uncertainty.
There's much fear in the market.
Additionally, one of the catalysts for the 10/10 disaster, the US-China tariff war, hasn't been resolved yet. Even if you believe these are negotiation tactics, the trade situation is a source of uncertainty.
#2. Crypto Natives are Rekt
Many bullish arguments claim that 10/10 only cleared the froth in the market. Since excessive leverage has been removed, we can get ready for a sustained rally.
But there's a problem: many crypto natives have gotten rekt due to the crash.
And only crypto natives buy the altcoins. Institutions won't buy $PEPE or even $SKY for that matter. And the retail hasn't come to crypto.
Additionally, many of the "serious projects" that people can invest in have a lot of token unlocks coming up. Sui, Arbitrum, & Ethena are some examples. With the crash reminding VCs about the weakness of the alts, they'll be forced to take profits as they unlock.
TLDR; Altcoins look terrible in the short-to-mid term. You'll have to search really deep to find alts with potential.
#3. TradFi Instruments: DATs & ETFs
This cycle has been largely driven by institutional bids. (There were exceptions like memecoin & AI Agent meta, but they're nothing like a traditional alt season.)
So let's look at how TradFi is looking at crypto.
Since Oct 10th, BTC saw $874.1M in net outflow. For contrast, $BTC gets $138.1M in net inflow on average.
While BTC is in red on the monthly, Gold is up >10%. While bulls argue that BTC will follow Gold in pumping, there's no strong historical evidence to support that.
$ETH has the same story. It lost ~$637M in the same period on ETF net flows. And since September, the % of the ETH held by ETFs has been staying down at ~5.8%.
Ultimately, we need to see a reversal of the ETF trend to be bullish.
Next, let's look at the DATs. The chart below tracks the trading volume of Treasury Companies.
The peak of DATs was back in November 2024. Until March 2025, only BTC had serious DATs. So we can exclude it from the current analysis.
If we look at the trading volume of DAT, we'll see that the mania started with ETH DATs in June and peaked in August.
While it dipped in September, the trading volume is doing fine in October. Caveat here is that the majority of volume is driven by just two companies: Strategy for BTC & BitMine for ETH. Others are weak.
The problem is with mNAVs.
While Strategy had >4 mNAV in October 2024, it's only 1.138 right now. This isn't enough for Saylor to comfortably execute the arbitrage strategy.
For Ethereum, SharpLink, and BTCS have <1 mNAV. It means they're trading below the value of the ETH they hold. This is very bearish. The BitMine mNAV seems to only be 1.13. Not that great.
So, the DAT situation is a bit more mixed. Trading volume actually looks fine. But their mNAV is low, which means they can't execute the arbitrage strategy. But that's not a death sentence.
#4. 4 Year Cycle Pattern
If we go by the traditional 4-year cycle pattern, we have already topped and should see a decline from now on.
I don't believe that prices follow the four-year cycle mindlessly; many bears do make this argument. If enough people believe in it, it can become a self-fulfilling prophecy.
This is a weak argument imo.
What's Next?
The above arguments have some substance, so we can continue to see a choppy sideways market in the short-term.
Right now, the alts are looking terrible. We'll need BTC & ETH to gain some strength before alts can pump.
In the medium-to-long term, I'm still optimistic for BTC. ETH also to some extent, since it also has ETFs & DATs.
The chart below tracks global liquidity.
The Global liquidity has reached a record high of US$184.6 trillion. Fed & other central banks are looking to print more. BTC price often lags global liquidity, so we can expect it to come back.
The short-term market is still very uncertain. So be cautious.
🚀 DeFi Catalysts
MegaETH is selling its token at a maximum valuation of $999M FDV. $MEGA is already trading at $5B valuation on HyperLiquid.
Stable L1 chain completed phase 1 of its pre-deposit campaign. Its $825M cap was filled within minutes. It seems to repeat the Plasma success.
Robinhood listed $BNB & $HYPE. None of the major crypto exchanges has listed the $HYPE token yet.
Bunny, a DEX built on Uniswap V4 that focuses on maximizing liquidity provider profits, is shutting down due to a hack.
MegaETH introduced the utility of the $MEGA token. It'll facilitate the sequencer selection and proximity markets for the chain.
Maple Finance and Aave have partnered to bring institutional assets to DeFi. Aave will start accepting Maple assets as collateral.
Aave DAO is discussing a long-term $50M annual AAVE Buyback Program funded by protocol revenue.
Jupiter has launched its first prediction market on an F1 race. It's in beta, and it is powered by Kalshi.
Rabby Wallet announced it'll be integrating Polymarket directly into its wallet. It's a new revenue opportunity for Rabby and will create more Polymarket users.
Kinetiq introduced the $KNTQ token. It's the governance token of the Kinetiq Protocol, the leading HyperLiquid liquid staking token.
Ethereal has gone live. It's a USDe-native perps dex built as an L3 on Arbitrum One,
Immunefi has announced ImmuneFi Security OS, an end-to-end security infrastructure to stop hacks before they happen. It'll be powered by the Immunefi Token (IMU).
📰 Industry News
Coinbase has acquired Echo, the fundraising platform from Cobie, for $375M. It also bought Cobie's NFT for resuming the UpOnly podcast for $25M.
Polymarket and Kalshi have been named as "official partners" of the NHL, the National Hockey League.
Layer 2 chains inherit the Ethereum L1 security. Finally, here's the tool to directly force include transactions on L2s from the Ethereum L1.
JitoSOL announced that they've banned 15 additional validators from receiving JitoSOL stake. They've been found to create toxic MEV.
Brian Armstrong, the founder of Base, said that Base is building private transactions.
Hyperliquid Strategies Inc. filed a Form S-1 with the SEC to raise up to $1 billion to buy HYPE.
🐦⬛ X Hits
- Comprehensive Polymarket Toolkit.
- a16z report on the state of the crypto.
- ICO meta is the replacement for airdrop meta.
- Ecosystem Map of the Yield-Bearing Stablecoins.
- Vaults will be the infrastructure for asset management.
- TVL is the wrong metric for analysing lending protocols.
- Codex on bringing the Foreign Exchange market onchain.
😂 Meme
Until next time,
Edgy
Today's email was written by Edgy and Yayya.
DISCLAIMER: I'm NOT a financial advisor. This content is for education and information purposes only. Crypto and DeFi are risky and speculative. Please do your research before investing.
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