📝 Editor’s Note:
DeFi is a more intricate ecosystem than it was over six years ago when a group of developers coined the term. Now, crypto is starting to look a bit more like Wall Street as investors and traders chain transactions across many protocols to arbitrage differences in yield.
For this issue OurNetwork is focusing on yield, the rates of return investors can get across DeFi, especially with their stablecoins. You won't find the flashy, token-fueled, triple-digit yields of 2021, but you will find a quick update on some of the most impactful rates in the space which are providing yield on billions of dollars.
Thanks to Tyler of the vaults.fyi team for kicking this off, also to Hubert and Pauls for covering Stake DAO and f(x) Protocol. Owen from the OurNetwork team also took a look at Pendle, a key project in the yield space.
– ON Editorial Team
Yield 🔼
Stake DAO | f(x) Protocol | Pendle
👥 Tyler W | Website | Dashboard
📈 DeFi Markets Show Renewed Risk Appetite, Signaled by ETH's Role as Productive Collateral at a High and Capital Flowing Back into Ethena
While Ethereum mainnet remains the hub for DeFi activity, lenders are finding higher rates on networks offering incentives to attract liquidity. Vaults.fyi's stablecoin benchmarks show higher seven-day average APYs on Polygon (5.64%), Base (5.34%), and Unichain (5.09%) compared to Mainnet (4.81%).
Ethereum is leaning into its "defipunk" journey, with ETH increasingly used as productive collateral. Aave is ETH's largest lending market and now holds over 3M WETH with roughly 5M additional ETH in staking derivatives like stETH and eETH. DeFi and yield continue to play a growing role in the Ethereum economy.
