Quarterly DeFi Yield Farming Report #1
What are the best risk adjusted ways to earn stablecoin yield in DeFi?
Dear Foot Guns,
Good news! Your premium subscription just got another upgrade.
Introducing…the Quarterly DeFi Yield Farming Report. Our new quarterly report gives you:
1. A general overview of the top stablecoin yield farming protocols
2. Hal’s top picks for the safest yield farms for the most consistent yields
3. An in depth video walk through of Hal models the risk of each pool and how to analyze the risk of yield farms yourself
Our best yield farming ideas distilled a video series of step by step training and actionable alpha. Crazy valuable insight. This month we’ve initiated coverage on Convex, Balancer, AAVE, Compound, Anchor, Stargate and GMX.
Expect to get one of these reports and training videos every 3 months as part of your Foot Guns Premium Subscription from now on. You ready? Let’s get to the Alpha.
None of the following are sponsors or affiliated with Foot Gun’s. We use these products and have tested them all ourselves. Always be careful when using DeFi protocols and carefully read what you are signing in your wallet. There is always a risk that your money can be lost due to a protocol hack in these early days of DeFi.
Already familiar with these protocols? You can skip the overview below and jump into Hal’s video where he outlines his top choices and quantifies the risk/reward.
What are the least risky options for getting stablecoin yields in DeFi? (in no order)
Convex (~1-15% APY)
“Boosted Curve Staking
Deposit liquidity, earn boosted CRV and rewards”
Curve allows users to swap stable value tokens with very low slippage. To incentivize liquidity Curve also distributes CRV tokens as part of its reward system. Convex was built on top of Curve to optimize yields, adding the CVX token on top of crv rewards.
Balancer (~5-15% APY)
“Automated portfolio manager and trading platform”
Balancer offers pools that rebalances into a fixed ratio of assets over time. Because of the multiple types of stablecoins Balancer offers a stablecoin pool that is a third of each type of popular stables, USDT, USDC, DAI. Rewards are paid in BAL token.
AAVE (~2.5% APY)
“Earn interest, borrow assets, and build applications”
AAVE allows users to deposit assets and borrow other assets. Those depositing are paid a variable rate by those that are borrowing. While AAVE offers small amounts paid in the AAVE token as rewards, most of the APR is paid in the borrowed asset by the borrower.