Rainforest Stack #007 Best DeFi Yields (Dec 28, 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

The trade style of ‘winners, average, winners’ has been printing, and the strongest performers to date keep winning. Farmers have plenty to be excited about as nascent chains build out their ecosystems an entire world of new yield opportunities arises. Interesting ecosystems to explore include cosmos chains such as $INJ, parallel EVM chains like $SEI, and the ongoing explosion on Bitcoin and Bitcoin layers twos like Stacks.

Whether investors are bullish or bearish is a personal choice. But the above chart shows the total crypto market cap minus $BTC and $ETH. Anybody who thinks altcoins are overheated should zoom out. 

Unironically, everybody reading this is early to the altcoin game, and the next twelve months will be riotous. First major headache at $800 billion, and the next big fight at $1.1 trillion. The bear market showed how rapidly altcoins could fall, and now the bull will show how rapidly they can climb. 

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 here.

Emergent Layer — Enduring Yields

1. Pool: stETH on Lido. APY: 3.6%. TVL: $19.9b. Chain: Ethereum

2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.5b. Chain: Ethereum

3. Pool: rETH on Rocket Pool. APY: 3.05%. TVL: $2.46b. Chain: Ethereum

4. Pool: frxETH on Frax. APY: 4.24%. TVL: $701m. Chain: Ethereum

5. Pool: GMX on GMX V1. APY: 3.28%. TVL: $305m. Chain: Arbitrum