Rainforest Stack #008 Best DeFi Yields (Jan 5, 2024)

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

Pain for the overleveraged apes. Over $1 billion of Bitcoin futures open interest was wiped out. Why? Matrixport released a report predicting the SEC will reject all ETF applications. The bad news is that anyone leveraged got annihilated. The good news is that this flush has reset open interest and funding rates to normal levels- a better foundation for a post-ETF approval rally.

Remember, it is a bull market, and dips are for buying. Always watch relative strength; altcoins that recover fastest post-flush will be the best horses to back. The usual suspects are in speedy recovery- $RUNE, $KAS, and $SEI- but leading the recovery rally is $ARB, $OP, and $LDO. A clear signal that the Q1 2024 trade is Ethereum.

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: 3.4%. TVL: $20.6b. Chain: Ethereum

2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.47b. Chain: Ethereum

3. Pool: rETH on Rocket Pool. APY: 3.11%. TVL: $2.39b. Chain: Ethereum

4. Pool: frxETH on Frax. APY: 3.9%. TVL: $672m. Chain: Ethereum

5. Pool: GMX on GMX V1. APY: 2.61%. TVL: $349m. Chain: Arbitrum