Insights and Analysis to Drive DeFi Decisions
DeFi Yields Over Time
An attractive and interesting development of DeFi is yield which on-chain activity generates. In a decentralised financial world, there are no intermediaries, hence the transactions fees accumulate to projects and users who provide the underlying liquidity into the system.
Yield can be earned on all tokens, however Story of DeFi focuses on two key token categories to determine its benchmark rates. Firstly, SoDeFi Benchmark Stablecoin Yield tracks the lending, trading and staking yield for all stablecoin pools that meet our proprietary criteria. Secondly, SoDeFi Benchmark ETH Yield measures 1) ETH and its wrapped equivalents across all chains used in lending and trading pools and 2) ETH yield generated by staking in Liquid Staking Derivatives (LSDs)
DeFi Yields by Project & Chains
The second level of analysis that SoDeFi engages in is to deep dive on how Yield vary across the largest chains and largest projects.
Below is a breakdown of the 7-day yield across largest blockchain and their range. The figure suggest that newer and smaller chains will typically exhibit higher yields in order to attract new users.
The chart of the right further deep dives to show which applications specifically exhibit the highest yields.
DeFi Pool Deep Dive
The deepest level of analysis is to look at pool level data. This most granular level presents the Total Value Locked (TVL) and the 30 Day Yield of pools. The pool data is distributed with individual pools hugging the chart axis, meaning that pools with the largest TVL typically payout lower yields as they are more established. While newer or more risky pools offer higher APYs in order to grow their user base and locked in assets.
At SoDeFi, we look to help users generate sustainable yield but scoring the performance of pools to identify those that payout the highest yields at each level of TVL.