Rainforest Stack #003: Best DeFi Yields (Dec 1, 2023)

Discover the latest in DeFi yields with Rainforest Stack. Uncover various strategies and opportunities in yield farming, presented in an easy-to-understand format for DeFi rookies and experienced farm

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Inflows are up big across the board. TradFi is heavily long $BTC with CME Bitcoin Futures Open Interest higher than ever. The GBTC discount closing. Stablecoin supply continues to increase, and $COIN continues ripping- the most blatant proxy for crypto.

Crypto funds have attracted their largest weekly inflow in 2023, with Bitcoin fund inflows breaking through $1.5 billion year-to-date. Nine consecutive weeks of inflows at levels not seen since the last bull market in 2021, and everybody wants to get ahead of the Spot ETF approval.

Things are finally getting exciting again.

Welcome to the Rainforest Stack. A guide for the intrepid into the dynamic world of DeFi yield.

Constituted of four distinct layers: undergrowth, understory, canopy, and the emergent layer. Each layer boasts a different level of risk broadly categorized in line with the Lindy effect- the longer something has survived, the more likely its continued existence becomes.

An impact with oversized ramifications in the crypto space where hundreds of new protocols live and die each quarter.

More details about the Layers of the Rainforest stack are here.

Emergent Layer — Enduring Yields

1. Pool: stETH on Lido. APY: 3.6%. TVL: $18.6b. Chain: Ethereum

2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.58b. Chain: Ethereum

3. Pool: rETH on Rocket Pool. APY: 3.41%. TVL: $2b. Chain: Ethereum

4. Pool: frxETH on Frax. APY: 4.15%. TVL: $596m. Chain: Ethereum