Rainforest Stack #013 Best DeFi Yields (Feb 8, 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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Jerome Powell gave a rare interview this month and said the quiet part loudly. ‘‘The U.S. federal government is on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy… We’re borrowing from future generations.” The losers of this generation are anybody holding the dollar/ treasuries when the printer eventually comes back on to debase the dollar. The real long-term losers are the next generation, who will have to foot the bill. People will need to run to quality, and macro trends provide ripe and fertile fields for currency with fixed monetary rules. Congratulations.

DeFi TVL remains in an uptrend, and it has been airdrop season. Congratulations to anybody who followed our advice and staked $TIA. A very generous airdrop from Dymension. The modularity narrative is only just starting. Welcome to the era of modular money. Wormhole also announced their $W token this week, and on-chain degens are already re-capitalized. 

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: 3.44%. TVL: $22.6b. Chain: Ethereum

2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.16b. Chain: Ethereum

3. Pool: rETH on Rocket Pool. APY: 3.13%. TVL: $2.64b. Chain: Ethereum

4. Pool: frxETH on Frax. APY: 3.70%. TVL: $741m. Chain: Ethereum

5. Pool: GMX on GMX V1. APY: 1.88%. TVL: $273m. Chain: Arbitrum