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: 5.35% (up from 5.07% 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: Ondo (USDY) +43.2%, f(x) Protocol (fxSAVE) +25.2%, Liquity (yBOLD) + 21.7%:

ETH 30 day benchmark rate on Aave: 3.28% (up from 3.22% last week)

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

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

I’m going to start tracking this weekly with a brief update.

My guess is this number gets into the billions before year-end.

Last week: $407.75M TVL

This week:

A few weeks back, we wrote about how interesting these products could look once they were tranched.

We now have a few weeks of data, and the results are pretty impressive.

Both Royco and Strata approach tranching from different angles, but the end result is the same: more optionality for users to choose their preferred risk profile within these assets.

The Sr apyUSD tranche on Royco has a 7D APY of 8.62% and provides a minimum coverage of 15% but is currently 17.99%

The Jr apyUSD tranche on Royco has a 7D APY of 28.22%

Strata splits Saturn sUSDat into two liquid tokens:

srUSDat: senior, lower-risk fixed yield at 65% of the STRC dividend rate. Currently fixed at 7.79% APY

jrUSDat: junior, higher-upside yield exposure that absorbs volatility and first-loss risk. Currently a 7D APY of 20.15%

Strata added a new docs section for each new market, including a breakdown of the key nuances between Saturn jrUSDat and srUSDat.

I didn’t intend this to be such an STRC heavy report this week, but it is becoming a major player in DeFi yield and I just heard of a new protocol called Spreads.

This is how I heard about it:

I’ve been following Wajahat for a long time on X now so was very curious to learn more. I went to look closer at this product on their site, but it looks like the looping side is invite-only right now. According to the X post below they can achieve a 30% APY on 3.5x leverage on Spreads. It will be interesting to see how STRC looping vs holding jr tranche works out here longer term:

And one last idea from Stephen at DeFi Dojo/Mezzanine. This isn’t something I’d personally be comfortable doing, but my confidence in STRC is growing, even though I still don’t have any of my own funds in it yet.

I saw this post this week and thought it was interesting. Borrow rates really are low on Liquity and in a lot of scenarios you come out net positive in APY:

I haven’t paid close attention to Liquity lately so I’m not sure how often redemptions are happening, but one thing to keep in mind, the lower the borrow rate the closer you are to redemption risk:

Here’s a scenario I mapped out on the Liquity UI with $500k wstETH collateral and borrowing $250k of BOLD.

You would be net positive APY here, and the cool thing is Liquity now has Automatic Rates.

I didn’t even know they had this, but you can opt into an optimized rate so you don’t have to constantly watch and manage your position around redemptions.

Obviously there’s a trust assumption here, but as cool as “user-set rates” are, I always thought they weren’t really set-it-and-forget-it. This takes away a lot of that worry.

I somehow wasn’t aware Liquity was this competitive now. And the UI/UX here is very on point as well.

This Altura market on Morpho is relatively new, but it sets up a potentially attractive looping opportunity depending on how the borrow rate holds up.

Right now, the borrow rate is low relative to the AVLT yield, though it looks like it’s been bouncing around the 8% to 11% range. Obviously, changes in the borrow rate can dramatically impact the final APY here, but with AVLT currently yielding 19.41%, a looping strategy could land somewhere around 70% to 95% APY depending on risk tolerance (factoring in a buffer, never max leverage).

The base yield of AVLT has been pretty steady in this high 19% range for the past many weeks. We did a deeper dive on Altura in a previous edition of YOTW here.

x256 posted a breakdown on Saturn YTs. The YTs on pendle that interest me the most right now are Apyx, Saturn and Sierra:

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

Stablecoins

RWA

I skipped over this on my first pass because I thought it was mostly more context on how they’re handling the Resolv issue. And it is, but there are also some pretty significant new roadmap nuggets buried in here as well:

Sharplink have had plans to deploy into DeFi for a long time now. It’s cool to see they are finally rolling this out. Kind of funny timing after all the exploits we’ve had in DeFi lately, but glad to see it nonetheless.

As I mention in the post below, where they deploy will be very telling:

Thanks for checking it out!

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