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 farmers alike.

One Click Team
One Click Labs

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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
  6. Pool: GLP on GMX V1. APY: 8.08%. TVL: $153m. Chain: Arbitrum
  7. Pool: USDC-ETH (0.05%) on Uniswap V3. APY: 23.04%. TVL: $146m. Chain: Ethereum
  8. Pool: DAI-USDC-USDT on Curve Finance. APY: 1.43%. TVL: $193m. Chain: Ethereum
  9. Pool: USDT on Stargate. APY: 6.78%. TVL: $27m. Chain: Ethereum
  10. Pool: WBTC-ETH (0.3%) on Uniswap V3. APY: 8.05%. TVL: $229m. Chain: Ethereum

Observations

GLP starting to look considerably less attractive than positions on V2.

A large percentage of $stETH will likely find its way into Restaking protocols, and the sheer volume of liquidity makes all of the up-and-comers like Ether.Fi, Kelp, Renzo, Swell, etcetera, are worth following.

Notable Mentions

Pool: USDT on Iron Bank. APY: 20.81%. TVL: $11.35m. Chain: Ethereum

Pool: USDC on Aave V3. APY: 15.10%. TVL: $35.5m. Chain: Avalanche

DeFi is still rocking scandalously high supply rates for stablecoin holders on every chain. Double-digit APYs are nothing to sniff at, and anybody holding a percentage of their portfolio in stables to add during dips can be building their stack while they wait. This is additionally a great treasury growth hack for teams.

Canopy Layer — Established Yields

  1. Pool: MAGIC-ETH on Camelot. APY: 149.87%. TVL: $1.08m. Chain: Arbitrum
  2. Pool: PENDLE-ETH on Camelot. APY: 187.94%. TVL: $1.17m. Chain: Arbitrum
  3. Pool: CRV on Frax. APY: 28.59%. TVL: $34.3m. Chain: Ethereum
  4. Pool: BNB-USDC on GMX V2. APY: 44.43%. TVL: $3.5m. Chain: Arbitrum
  5. Pool: SOL-USDC on GMX V2. APY: 44.98%. TVL: $23.27m. Chain: Arbitrum
  6. Pool: ETH-USDC on GMX V2. APY: 27.50%. TVL: $2.54m. Chain: Arbitrum
  7. Pool: ARB-USDC on GMX V2 APY: 23.84%. TVL: $19.37m. Chain: Arbitrum
  8. Pool: USDT-RUNE on THORSwap. APY: 92.01%. TVL: $18m. Chain: Ethereum
  9. Pool: ETH-RUNE on THORSwap. APY: 135.90%. TVL: $60.76m. Chain: Ethereum
  10. Pool: LINK-ETH (0.3%) on Uniswap V3. APY: 47.55%. TVL: $37.35m. Chain: Ethereum

Observations

The BNB market on GMX is on fire and has attracted over $3 million in liquidity since we featured it last week. Congratulations to any early entrants to the pool! Overall yields on GMX V2 are excellent, and anybody still holding $GLP should strongly consider making the jump.

THORSwap is back with some wickedly high yields. The $ETH & $RUNE pairing paying out triple-digit yield means that lots of people have been routing through this pool. The big question is whether they are entering or leaving (it’s not rocket science).

Notable Mentions

Pool: gDAI on Gains Trade. APY: 12.1%. TVL: $32.1m. Chain: Arbitrum

Another excellent place to put dry powder. Gains Trade pays out a sweet yield on $DAI, and if farmers expect future volatility, it is a great option.

Pool: Turbo eETH Vault on Sommelier. APY: 12%. TVL: $180m. Chain: Ethereum

Sommelier offers a great product for anybody who wants exposure to the restaking narrative with minimal input. Zap $ETH straight into the vault and start earning $SOMM tokens and Ether.Fi loyalty points. Vault provides liquidity on Uniswap and Balancer, leverages Morpho, and participates in lending on Aave.

Understory Layer — More Unpredictable Yields

  1. Pool: PORK-ETH (1%) on Uniswap V3. APY: 4,269.77%. TVL: $5.3m. Chain: Ethereum
  2. Pool: SAVM-ETH (1%) on Uniswap V3. APY: 407.31%. TVL: $4.34m. Chain: Ethereum
  3. Pool: TAO-USDC (1%) on Uniswap V3. APY: 557.23%. TVL: $2.75m. Chain: Ethereum
  4. Pool: FI-ETH (1%) on Uniswap V3. APY: 459.94%. TVL: $2.26m. Chain: Ethereum
  5. Pool: USDC-SUI (0.25%) on Cetus. APY: 420.61%. TVL: $7.37m. Chain: Sui
  6. Pool: TAO-ETH (1%) on Uniswap V3. APY: 313.25%. TVL: $3.67m. Chain: Ethereum
  7. Pool: SOL-USDC on Orca. APY: 413.15%. TVL: $8.76m. Chain: Solana
  8. Pool: ETH-PENDLE (0.3%) on Uniswap V3. APY: 233.37%. TVL: $3.21m. Chain: Arbitrum
  9. Pool: SOL-WIF on Orca. APY: 322.44%. TVL: $3.5m. Chain: Solana
  10. Pool: ETH-USDC APT Vault on Beefy. APY: 198.37%. TVL: $1.37m. Chain: Arbitrum

Observations

$TAO has been absolutely flying recently, and liquidity providers have been making outrageous fees. Up nearly 50% in less than a week, everybody entering a position or seeking exposure on Ethereum has been lining the pockets of LPs.

USDC-SUI pairing on Cetus (Sui) paying solid yield. Worth paying attention to what’s happening on Sui in general. Had a TVL of less than $200 million at the start of December last year, and now it stands at nearly $600 million. Also, it is way easier to qualify for airdrops on chains that the majority are not using. Aka, Aptos instead of Solana.

Notable Mentions

Pool: ezETH Fixed Yield on Pendle. APY: 63.09% TVL: $11.34m Chain: Ethereum

Pool: eETH Fixed Yield on Pendle. APY:26.72 % TVL: $168m Chain: Ethereum

Pendle has some incredible opportunities currently. The restaking narrative is running a little hot, and as a result, markets are likely mispricing things. Anybody using Pendle’s simplified earn products gets 2X Ether.Fi points and can lock in excellent fixed yields at what is likely an above-market rate.

Undergrowth Layer — Newest Players / Highest Risk

  1. Pool: JUP-SOL on Orca. APY: 29,480%. TVL: $4.95m. Chain: Solana
  2. Pool: JUP-USDT on Orca. APY: 28,477%. TVL: $1.03m. Chain: Solana
  3. Pool: JUP-SOL on Orca. APY: 20,368%. TVL: $2.04m. Chain: Solana
  4. Pool: JUP-jitoSOL on Kamino. APY: N/A. TVL: $4.14m. Chain: Solana
  5. Pool: MOCKJUP-SOL on Kamino. APY: N/A. TVL: $64,000. Chain: Solana
  6. Pool: SOL-MILK on Orca. APY: 29,354%. TVL: $15,000. Chain: Solana
  7. Pool: GME-USDC on Orca. APY: 12,817%. TVL: $119,000. Chain: Solana
  8. Pool: SOL-UPSIDEDOWNCAT on Kamino. APY: 125,103%. TVL: $90,000. Chain: Solana
  9. Pool: MYRO-SOL on Kamino . APY: 21,466%. TVL: $291,000. Chain: Solana
  10. Pool: WEN-SOL on Kamino. APY: 178,603%. TVL: $729,000. Chain: Solana

Observations

Regarding degenerate yields, Solana is back in the driver’s seat. But instead of the usual vaporwave meme tokens, all the action takes place with $JUP. Jupiter’s new token was recently airdropped, and anybody LPing has made a fortune in trading fees during the price discovery round.

Notable Mentions

Pool: hINJ on Hydro. APY: 15.29%. TVL: $37m. Chain: Injective

Pool: hINJ Farming on Hydro. APY: N/A. TVL: $37m. Chain: Injective

Hydro has finally gone live on mainnet. $INJ stakers have already qualified for an airdrop of $HYDRO, and anybody who deposits their $hINJ in the farm will earn points for the next four weeks, which can be exchanged at a 1:1 rate at the TGE.

P.S.: would you like to explore the most interesting DeFi yield opportunities and airdrops in real time?

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Here’s an example of a portfolio on the Arbitrum chain generated by One Click Crypto:

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Disclaimer: This article, including insights on the “Rainforest Stack” and other DeFi strategies, is for informational purposes only and should not be considered as financial advice, investment recommendations, or an endorsement of any particular investment or strategy. The cryptocurrency and DeFi markets are highly volatile and unpredictable. Past performance is not indicative of future results. One Click Crypto makes no representations or warranties regarding the accuracy, completeness, or timeliness of the information provided. Readers should conduct their own research and consult with independent financial advisors before making any investment decisions. By using this information, you agree that One Click Crypto is not liable for any losses or damages arising from your investment choices.

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