Welcome to Yields of the Week! Every week, we spotlight the top DeFi yields across the crypto landscape, focusing on opportunities that are not just the highest APYs but also sustainable risk-adjusted opportunities. Whether you're new to DeFi or a seasoned degen, our goal is to help you navigate the yield farming space with confidence. Let’s dive into this week’s picks!

USDC 30 day benchmark rate on Aave: 2.15% (up from 1.99% last week)

Here’s the top yielding stablecoin vaults (real yields) for the past 30 days:

Checking in on Stablewatch to see the 7-day TVL changes.

This week the top movers were: Superstate (USTB) +32.7%, Open Trade (XMMF) +31.8%, Open Eden (USDO) + 29.2%:

ETH 30 day benchmark rate on Aave: 1.70% (down from 1.75% last week)

Here’s the top yielding ETH vaults (real yields) for the past 30 days:

Up to 59.67% looping yield on this vaCBETH/msETH loop:

With Odyssey, loops using the “ms” (Metronome Synth) debt token can be pushed much closer to max leverage, given how these synthetic assets are designed.

If you want a deeper dive on msAssets, I covered them in more detail in a previous YOTW here:

We’ve been following Main Street since they were around $9M in TVL. Since then, they’ve grown to $46.9M while maintaining a fairly consistent ~12% APY.

At a high level, they’re running a market neutral box spread strategy on CME.

More on the underlying mechanics directly from their site here:

Here’s their March recap below:

An interesting new market opened on Strata:

As you can see below the senior protected tranche is yielding 5.24% and the junior tranche is yielding 10.61%:

For comparison sake, you can look at the vanilla mHYPER vault on Midas here with a 6.48% APY:

It’s pretty fascinating to watch the market organically price the junior and the senior almost perfectly above and below the vanilla mHYPER deposit. It’s a beautiful thing when DeFi works as intended like this. The Strata product is really cool. Podcast with them coming 🔜

The kpk USDC Yield Vault has been returning around 9% over the last 30 days. Here’s a look at what’s driving the yield under the hood (a lot of names we’ve covered in YOTW):

Taking a look at the front page of Stablecoin yields and RWA yields this week on Pendle:

Stablecoins

RWA

Earlier this week Ethena finally revealed their new direction. The basis trade will still be a feature, but Ethena is accessing new sources of collateral:

And I like this framing:

Luca Prosperi recently sparked a classic CT debate with a piece on Morpho, looking at how many bps above the risk-free rate vaults should be earning.

You can follow the thread below to find his original post, along with the back and forth that followed:

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

DISCLAIMER: Nothing written in The Edge Newsletter or said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed in our content are solely the opinion of that writer, host, or guest. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this content.