Rainforest Stack #011 Best DeFi Yields (Jan 25, 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
The Spot ETF Approval marked the local top, and Bitcoin has retraced a sizeable 20%. Overall metrics for ETFs remain excellent, with $BTC Spot ETFs attracting more volume than all other ETFs launched this year. Total net inflows stand at $1.06 billion, which is fantastic news despite the rampant dumping of GBTC shares. Anybody with questions about why the price is tanking should take it up with Barry Silbert.
The drawdown has reiterated the lesson on sizing and risk management. Altcoins are entering buy zones, and after moving nearly vertically for months, markets were overdue a 20/30% correction. As Barry continues to dump, can we bleed more? Yes. Is now a good time to start putting together a shopping list? Absolutely. Markets may not be kind enough to give sidelined capital another chance unless something breaks in TradFi.
The advice to de-risk in the run-up to/ day of the approval was solid retrospectively. The cumulative PnL of traders on Hyperliquid tells the entire story. DeFi still looks strong, and the restaking meta is entering its next stage.
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
Pool: stETH on Lido. APY: 3.2%. TVL: $20.89b. Chain: Ethereum
Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.41b. Chain: Ethereum
Pool: rETH on Rocket Pool. APY: 3.08%. TVL: $2.47b. Chain: Ethereum
Pool: frxETH on Frax. APY: 4%. TVL: $687m. Chain: Ethereum
Pool: GMX on GMX V1. APY: 8.17%. TVL: $256m. Chain: Arbitrum
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