Rainforest Stack #002: Best DeFi Yields (Nov 23, 2023)

CZ has departed as the head of Binance following a settlement with the DOJ. Despite being a sad day for crypto, a black swan event involving Binance was the last cloud of uncertainty hanging over the market.

Headed into 2024 with a Bitcoin ($BTC) Spot ETF likely approved in January and the halving coming months later set against the backdrop of rate cuts and further liquidity injections, investors need to shake off their bear market bias.

A classic gauge for institutional interest in Bitcoin is the GBTC discount/ premium. Entities pay over the market price when sentiment is bullish and can squeeze a discount during the bear.

The GTBC premium flipping to discount marked the start of the end, and similarly, the discount closing hints that the bull market has been underway for months. Worth noting that the GBTC is an inferior product to a Spot ETF. When/ if the discount closes to -5% the juice probably isn’t worth the squeeze for larger investors.

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.

Emergent Layer — Enduring Yields

1. Pool: stETH on Lido. APY: 3.6%. TVL: $18.6b. Chain: Ethereum
2. Pool: DAI on Maker (DSR). APY: 5%. TVL: $1.58b. Chain: Ethereum
3. Pool: rETH on Rocket Pool. APY: 3.41%. TVL: $2b. Chain: Ethereum
4. Pool: frxETH on Frax. APY: 4.15%. TVL: $596m. Chain: Ethereum
5. Pool: GMX on GMX V1. APY: 2.93%. TVL: $329m. Chain: Arbitrum
6. Pool: GLP on GMX V1. APY: 13.3%. TVL: $308m. Chain: Arbitrum
7. Pool: USDC-ETH (0.05%) on Uniswap V3. APY: 38.63%. TVL: $219m. Chain: Ethereum
8. Pool: DAI-USDC-USDT on Curve Finance. APY: 1.4%. TVL: $194m. Chain: Ethereum
9. Pool: USDC on Stargate. APY: 6.2%. TVL: $20.52m. Chain: Arbitrum
10. Pool: WBTC-ETH (0.3%) on Uniswap V3. APY: 9.18%. TVL: $194m. Chain: Ethereum

Notable Mentions

Pool: ETH-stETH on Curve Finance. APY: 3.24%. TVL: $103m. Chain: Ethereum

Pool: stMATIC. APY: 4.32%. TVL: $110m. Chain: Ethereum

Canopy Layer — Established Yields

1. Pool: BTC-RUNE on THORSwap. APY: 372.4%. TVL: $108m. Chain: Bitcoin
2. Pool: ETH-RUNE on THORSwap. APY: 202%. TVL: $64.5m. Chain: Ethereum
3. Pool: USDC-RUNE on THORSwap. APY: 270%. TVL: $23.54. Chain: Ethereum
4. Pool: USDT-RUNE on THORSwap. APY: 381%. TVL: $26.33m. Chain: Ethereum
5. Pool: BNB on THORSwap. APY: 11.8%. TVL: $1.07m. Chain: BNB
6. Pool: ILV-ETH on SushiSwap. APY: 14.75. TVL: $66.92m. Chain: Ethereum
7. Pool: MAGIC-ETH on SushiSwap. APY: 24.83%. TVL:$11.73m. Chain: Arbitrum
8. Pool: stETH Maturity 25th December 2025 on Pendle. APY: 6.2%. TVL:. Chain:
9. Pool: MUXLP on Mux. APY: 42.4%. TVL: $57.5m. Chain: Arbitrum
10. Pool: WETH-USDC.E (0.05%) on Uniswap V3. APY: 78.64%. TVL: $26.53m. Chain: Arbitrum

Notable Mentions

Pool: gDAI YT on Pendle. APY: 69.48%. TVL: $1.63m. Chain: Arbitrum

Pool: WETH-WINR (1%) on Uniswap V3. APY: 350%. TVL: $95,990. Chain: Arbitrum

Understory Layer — More Unpredictable Yields

1. Pool: USDC on Maple Finace. APY: 4.71%. TVL: $16.5m. Chain: Ethereum
2. Pool: USDT-WBNB (0.05) on PancakeSwap. APY: 27.54%. TVL: $37.57m. Chain: BNB
3. Pool: ETH-BTCB (0.25) on PancakeSwap. APY: 12.23%. TVL: $17.76m. Chain: BNB
4. Pool: CAKE-WBNB (0.25) on PancakeSwap. APY:82.76%. TVL:$13.38m. Chain: BNB
5. Pool: BLUR-ETH (1%) on PancakeSwap. APY: 152%. TVL:$32,366. Chain: Ethereum
6. Pool: ETH-USDC on GMX V2. APY: 43.87%. TVL: $737,000. Chain: Arbitrum
7. Pool: LINK-USDC on GMX V2. APY: 40.1%. TVL: $4.63m. Chain: Arbitrum
8. Pool: SOL-USDC on GMX V2. APY: 38.33%. TVL: $4.23m. Chain: Arbitrum
9. Pool: UNI-USDC on GMX V2. APY: 37.27%. TVL: $1.19m. Chain: Arbitrum
10. Pool: CSIX-CAKE (0.25%) on PancakeSwap. APY: 188.38%. TVL:$309,000. Chain: BNB

Notable Mentions

Pool: WETH-ARB on Camelot. APY: 66.69%% TVL: $4.27m Chain: Arbitrum

Pool: USDC-ETH on Camelot. APY: 97.98% TVL: $5.58m Chain: Arbitrum

Undergrowth Layer — Newest Players / Highest Risk

1. Pool: ETH & Stablecoins on Blast. APY:4%/5%. TVL: $230m. Chain: Blast
2. Pool: USDT-MBX (1%) on PancakeSwap. APY: 496.75%. TVL: $353,000. Chain: BNB
3. Pool: WBNB-BIBI (1%) on PancakeSwap. APY: 552.73%. TVL: $17,290. Chain: BNB
4. Pool: BETS on YeildYak. APY:44.97%. TVL: $10,940. Chain: Avalanche
5. Pool: WETH-CRAZYRABBIT (1%) on Uniswap V3. APY: 453%. TVL: $174,000. Chain: Arbitrum
6. Pool: USDH-BONK on Kamino. APY: 3,210%. TVL: $29,310. Chain: Solana
7. Pool: PYTH-SOL on Kamino. APY:2,571%. TVL:$84,340. Chain: Solana
8. Pool: USDC-PYTH on Orca. APY: 1,398%. TVL: $611,370. Chain: Solana
9. Pool: BONK-PYTH on Orca. APY: 1,385%. TVL: $58,000. Chain: Solana
10. Pool: SOL-BONK on Orca. APY: 1,340%. TVL: $487,000. Chain: Solana

Notable Mentions

Pool: WETH on BetaFinance. APY: 15.33%. TVL: $25,719 Chain: Ethereum

Pool: BISO. APY: 751% TVL: N/A Chain: Bitcoin

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.