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!

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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 Yuzu +56.8%, Resolv +23.6% (on very thin TVL) and mStable +22.8% (we wrote about mStable last week in YOTW and their Autoaavethena vault)

Just outside the top 3 is syrupUSDT by Maple which increased their TVL by 12% over the 7 day period which is impressive with a $736.67M TVL base.

Nothing conclusive here, just things I’m watching:

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

I’ve been meaning to dig deeper into Yuzu Money for a while and I’m not sure why I didn’t sooner. I remember following Ouroboros Capital on X for ages and always thought they were sharp, so it’s great to see them actually build their own product.

Yuzu has also been showing up near the top of weekly TVL changes on Stablewatch, which was the final nudge I needed to take a closer look.

So What Is It?

I pulled this straight from their docs:

When I go to their website I see 3 separate stablecoins: yzUSD, syzUSD and yzPP

The first thing that stood out were the headline yields: 11% on syzUSD and 40% on yzPP. syzUSD made sense to me right away, but I had to dig a bit deeper into yzPP to understand the risk profile. It’s the junior tranche and absorbs losses first in the event of drawdowns.

This is similar to Resolv’s RLP, but even so, a sustained 40% yield is still impressive if they can actually deliver it.

Here’s how their docs describe yzPP:

Interestingly enough this pool looks as though it is KYC’d and only for accredited investors:

Even the staked version at 11% is really impressive yield in this market. I will be keeping a closer eye on Yuzu yields going forward. Also, I believe their grand vision here is a Neobank so it will be interesting to watch that come together as well.

Dolomite TVL has been going parabolic over the last few days driven in large part by their partnership with World Liberty Financial.

DeFi Dad outlines a few automated looping strategies he’s currently watching on Dolomite below with ~25% - 50% APY:

I’m not affiliated with DeFiLlama in any way, but I’ve long been a fan of how they’ve pioneered DeFi analytics for the space. I’ve been spending more time with LlamaAI and have started to find it incredibly useful for certain tasks.

One obvious use case is as a research assistant for identifying undervalued tokens, but another I hadn’t tried until today is using it for yield discovery.

I put in this prompt:

It visualized the data in several interesting ways, but this output was ultimately the cleanest:

It’s actually pretty awesome how quickly you can prompt this. It thought for about 30 seconds before generating everything, and I can already see myself using it more and more for yield sourcing going forward.

DeFi Dad and I have both spoken with the Re team and stay in touch with them on Telegram. We’re not affiliated in any way, but we like the team and agree that reinsurance introduces an interesting new exogenous yield source for DeFi.

I hadn’t checked in on them in a while and was impressed to see TVL now north of $400M.

I mention this because the days of blindly aping into the highest yields on Pendle are over. Risk management is paramount (as it always should be). There are never guarantees, but to me this stands out as a better risk-adjusted option than most.

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

Stablecoins

BTC

ETH

HYPE

Gladiator is an avid airdrop hunter I follow on X. I asked if he’d write the odd post on airdrops that are high priority for him.

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.