Rainforest Stack #012 Best DeFi Yields (Feb 1, 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

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Since the approval, markets have seen plenty of distribution, but ETF inflows remain healthy. A huge number of airdrops have taken place, and when the on-chain degens get recapitalized, things start to get exciting. The recent $JUP airdrop put plenty of money into people’s pockets, and with the recent collapse of New York Community Bancorp stock price, are we getting closer to rate cuts? Below is the Global Liquidity Index. Is it all really this simple? VCs like Chris Burniske remain short to mid-term bearish, but the long-term plan is the same- $10 trillion plus.

More and more activity is taking place on-chain. Airdrops farmers are leaving broad digital footprints all over the ecosystem, and all activity typically tends to drive up DeFi yields, which have been substantially higher than TradFi yields for several months. Nature has healed. 

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: 3.5%. TVL: $21.86b. Chain: Ethereum

2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.19b. Chain: Ethereum

3. Pool: rETH on Rocket Pool. APY: 3.41%. TVL: $2.57b. Chain: Ethereum

4. Pool: frxETH on Frax. APY: 3.78%. TVL: $721m. Chain: Ethereum

5. Pool: GMX on GMX V1. APY: 2.04%. TVL: $274m. Chain: Arbitrum