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: 2.44% (down from 2.94% 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 Piku (USP) +84.4%, OpenTrade( xSLP) +45.9% and Ondo (USDY) +30.6%

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

ETH 30 day benchmark rate on Aave: 2.30% (up from 2.21% last week)

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

I’m leaving this in for one more week.

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.

This caught my eye this week.

Steakhouse has two new vault types: Turbo and Term

Turbo:

Basically Steakhouse is automating leverage for you to give you high returns on your AUSD or cbBTC.

The yields on this are fluctuating a lot right now, but AUSD is between 14 - 15% after performance fee with 7 day at ~32% APY (need to monitor these to get an idea of where they level out):

Here’s the strategies they are employing under the hood:

Here’s directly from their Turbo page on their website. You can see in the highlighted section, these are intended to be longer term positions where Steakhouse curates the strategy:

More on Turbo in their docs here

Term

Term yield is currently showing ~9% APY less a performance fee. Interestingly here, Agora is directly incentivizing with a generous 5% AUSD component. Not sure how long that will last:

Here’s a bit of a breakdown on the underly strategy methodology for Term:

More on Term docs here.

Very interesting to see Steakhouse offer more products out on the risk curve. I will have to keep an eye on these, I have a feeling they could do quite well with Steakhouse’s sterling track record.

Noon has a lot to offer in their staking and vault yields.

sUSN the staked version of USN has had an incredible track record now dating back well over a year now. Currently sUSN has a 7D 11.04% APY and 28D 9.24% APY

On top of this they also have their vaults.

Strata + Neutrl

Myself and DeFi Dad recently learned a bit more about Strata and I’ve started to cover it more here in YOTW. This feels like only the beginning for risk tranching (this apparently isn’t a word, but it should be) in DeFi.

Here’s a great yield that DeFi Dad wrote up that combines the Senior PT version of NUSD. at the time he wrote this the loop was around 24% APY:

Solid ETH yield being offered between 3 DeFi OGs. Netting anywhere from 9 - 19% APY:

I’ve been meaning to take a closer look at D2 Finance. I saw them recently post this and that was the prompt:

This passage below is from the tweet above and it really caught my eye:

If you take these returns at face value they are absolutely incredible. I want to dig into more receipts and ask some friends that have entered any of these positions.

As amazing as these yields are, with returns like this you are exposed to greater risk. Currently they are showing, 41% APR on USDC strategy (50 day lockup), 45% on HYPE (8 day lockup) and 10.84% on BTC (57 day lockup):

This really hit:

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

Stablecoins

BTC

ETH

HYPE

I wanted to leave you with an interesting read. The title alone is incredible and basically forced me to click.

Lotus is a new protocol attempting to price risk that sits outside the bounds of what the market currently prices, both in the extreme tail risks and in the messy middle that often gets ignored. The tranched engine produces a true rate curve, with fairly priced risk across tranches. That enables a new range of vault profiles and opportunities for borrowers:

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.