If you've been wondering why the look of DeFi Vaults has changed, I have switched my newsletter service provider from Substack to Paragraph.xyz!
Paragraph is a truly decentralized publishing platform that allows me to own my work (via ARweave) and connect with you guys in new ways (collectible posts, token-gated posts, wallet notifications etc.)
Hope you guys like the new look ;). Now, on to latest DeFi alfa:
⚡️What’s new?⚡️
🏦 DeFi Vault Spotlight: MIM/USDC.e/USDT >5% APY
🧪 Yield Farming 101: $GHO Ce/DeFi Stablecoin Strategy
📊 Charts & Stats: Introducing the DeFi Vaults Stablecoin Dashboard
🐦 Last Week in Crypto Twitter (CT): Frax experiments with tbills for V3, Liquity V2 is on the horizon, Optimism introduces new SuperChain governing structure, and more.
🏦 DeFi Vault Spotlight: MIM/USDC.e/USDT
This MIM/USDC.e/USDT vault on Beefy (via Arbitrum) hasn't dropped below a 5% APY since it's inception! It also has a TVL of ~$2.2M which is a great sign for users with <=$10k funds, as your deposits won't rapidly dilute the rewards.
Note: USDC.e is a token representing USDC on Avalanche that was bridged from the Ethereum blockchain via the Avalanche Bridge.
Risks:
MIM depeg risk
USDC.e
depeg risk
bridge hack
USDT depeg risk
View more Stablecoin yields, here.
🧪 Ce/DeFi Stablecoin Strategy
Strategy
Balancer's GHO/Boosted Aave v3 USD pool (via Ethereum) is receiving heavy emissions 💸. The pool currently holds a TVL of $5.5M and is rewarding depositors with a 17%-37% vAPY! I don't expect these emissions to last forever, so in order to diversify your position you can swap your $BAL rewards to crvUSD and deposit in Conic's Omnipool for 17%. This also helps maintain the APY of your initial deposits in Balancer as your not contributing to diluting the GHO/Boosted Aave v3 USD pool further.
Deposit $GHO into the GHO/Boosted Aave v3 USD pool on Balancer
Swap $BAL rewards for $crvUSD on Uniswap
Deposit $crvUSD into Omnipool on Conic Finance
Risks:
Stablecoin depeg risk:
GHO
USDC
USDT
crvUSD
Smart contract risk from depositing funds in multiple protocols
📊 DeFi Vaults Stablecoin Dashboard
I've compiled my top picks for stablecoin vaults on each chain and compiled them into a neat dashboard with the help of @backtest_dummy (Blockchain data scientist).
The point of this dashboard is to provide you a quick overview of some of the best stablecoin yields on chain (Ethereum, Arbitrum, Optimism, Polygon, and Avalanche).
I am tracking the following metrics for each chain:
DEX volume
Stablecoin TVL
And the following metrics for each vault:
TVL
APY
This dashboard tracks the following vaults:
Ethereum
$eUSD+FRAX/USDC (BeefyFinance)
$hyUSD/$eUSD (CurveFinance)
$MIM/$DAI/$USDC/$USDT (BeefyFinance)
$R-DAI (BeefyFinance)
$TUSD/$DAI/$USDC/$USDT (BeefyFinance)
$USDT (IronBank)
Polygon
$DAI (gDAI vault) (GainsNetwork)
$DAI/$USDR (BeefyFinance)
$jEUR/$PAR (BeefyFinance)
$MAI/$USDC (BeefyFinance)
$USDC/$USDR (BeefyFinance)
Optimism
$USDC (hot tub) (Perp Protocol)
$jEUR/$agEUR (BeefyFinance)
$LUSD/$DAI (BeefyFinance)
$LUSD/$USDC (BeefyFinance)
$LUSD/$USDT (BeefyFinance)
$MAI/$USDC (BeefyFinance)
Avalanche
$MAI/$DAI$USDC/$USDT (BeefyFinance)
$MAI/ $USDC (BeefyFinance)
$MIM/$USDT (TraderJoe)
$USDT/ $USDC (BeefyFinance)
Arbitrum
$agEUR/$USDC.e (BeefyFinance)
$DAI (BeefyFinance)
$MAI/$USDC.e (BeefyFinance)
$MIM/$USDC.e/$USDT (BeefyFinance)
I am planning on adding links to each of the vaults within the dashboard, adding new vaults and chains, and including some other cool features to enhance overall UX/UI. Happy farming 🌾 👻.
🐦 Last Week in Crypto Twitter (CT)
For those who didn’t see on my Twitter, this is a bearish opinion on Pendle that was very thought provoking to read:
Unlike what the influencers have claimed, @pendle_fi does not work. While I do appreciate the immense effort the team has put in, I cannot ignore the flaws I see in the protocol design. And here’s me taking a crack at Pendle. Read on to understand my view
288
Liquity V2 looks to be interesting. They’re targeting hedging with this upgrade.
One of the main challenges that protocols with a decentralized reserve have faced is that when there’s not enough demand for leverage = there can be very high hedging costs, which can cause immense strain for the protocol.…
The secondary market refers to a marketplace within Liquity v2, where users can buy and sell their hedging positions. The secondary market plays a crucial role in helping to mitigate the risks for the protocol.
How
When users want to…
GRAIN airdrop eligibility list is live! Depending on your size, it’s not very much. In addition, the liquidity is pretty thin at this time and a lot of airdrop farmers are looking to dump. So, what am I going to do? I’m going to drop it in an LP and yield off of it because by the time I claim, the token value is going to drop pretty quickly. We need to give GRAIN time to get some fundamentals in line before the returns are nice, so if you believe in them long term, selling this airdrop for Pennies isn’t really worth it:
A list of eligible airdrop users can be found on our GitHub at: github.com/The-Granary/ai….
Happy farming!
Pendle will be deploying on Manyle, a newer alt L1 that has caught some buzz on CT:
…
Interesting news from Optimism, giving the community power over the SuperChain:
Additional:
Frax is experimenting with RWAs and tbills, for V3 Launch:
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