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: 2.94% (down from 3.27% 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 Main Street +54.8%, Reservoir Protocol +26.1% and Midas +16.9%

Nothing conclusive here, just things I like to check in on every week:

ETH 30 day benchmark rate on Aave: 2.21% (up from 2.08% last week)

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

This was an eye opening tweet from the vaults.fyi chads. Only 2% of the $20B in vaults is generating more than 10% APY:

This really encapsulates the state of yield in DeFi. Even above 5% right now puts you in rare territory.

Now, the next two yields you read about are over 10% and are in the top 2% of all of DeFi…

We’ve written up Re before and have spoken with the team a few times. I was reminded about them recently from this Emperor Osmo tweet.

The part that caught my eye was this:

What I find interesting is that this statement captures both my excitement about where DeFi is heading and my concern about the risks.

On one hand, we need new exogenous yield sources (reinsurance) and should encourage them. On the other, they have consistently been a source of major blowups.

Radical transparency is essential here.

That said, the Re insurance alpha product has been consistently high and currently showing a trailing 12% APY:

And its been holding steady at 12% since January 3rd:

Gauging APYs on Katana has been tricky since a meaningful portion of the yield is tied to expectations around the future token.

That said, even if you want to strip out future token risk, there are still some strong base yields available.

For example, the Agora vault is currently generating a 10.7% native yield. If I haircut KAT to a $50M FDV to reflect a more conservative, bear case scenario, the blended yield comes out to 12.52% APY.

This caught my attention the other day. It feels like we’re starting to see the restaking sector mature and, more importantly, what it can actually unlock.

I didn’t intend to get another Emperor Osmo tweet in here, but I thought this was a good breakdown of what’s happening here under the hood:

I also really enjoyed this write-up from Stephen at DeFi Dojo. We cover a lot of the same ground, and he consistently does a great job unpacking the finer details.

We’re still in the early innings of the RWA boom. The missing catalyst, in my view, is figuring out how to safely apply leverage to some of these tokenized positions:

🚨 Important rollover information if you’re in if you’re in the Feb 26th or March 5 Neutrl PTs:

Taking a look at the front page of DeFi yields on Pendle:

Stablecoins

BTC

ETH

HYPE

I was trying to piece together what happened on Feb 23 when Midas posted an update about the mF-ONE vault. It caused a noticeable stir on the timeline and in Telegram chats.

My first reaction was: didn’t we already know about this?

I was almost certain I had read about it last year in relation to an autogroup exposure at Fasanara that experienced an impairment. After digging in, that’s exactly what this was. The same issue resurfacing, but this time catching some people off guard who either missed it the first time or forgot the details.

At the time, Steakhouse published an excellent breakdown of what happened.

Fasanara released its monthly factsheet on December 3, and the following day Steakhouse put out a detailed note titled “Primer and FAQs for mF-ONE” that walked through the situation clearly.

As we move deeper into the world of RWAs and private credit, this is essential reading. Understanding how these structures work, and how they differ from the overcollateralized DeFi yields most of us are used to, is critical.

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.