# DeFi Vaults Issue #65 *DeFi Market Research Newsletter * By [Defi Vaults](https://paragraph.com/@defivaults) · 2023-07-31 --- If you've been wondering why the look of DeFi Vaults has changed, I have switched my newsletter service provider from Substack to [Paragraph.xyz](http://Paragraph.xyz)! Paragraph is a truly decentralized publishing platform that allows me to own my work (via ARweave) and connect with you guys in new ways (collectible posts, token-gated posts, wallet notifications etc.) Hope you guys like the new look ;). Now, on to latest DeFi alfa: ⚡️What’s new?⚡️ --------------- 🏦 **DeFi Vault Spotlight:** MIM/USDC.e/USDT **\>5% APY** 🧪 **Yield Farming 101:** $GHO Ce/DeFi Stablecoin Strategy 📊 **Charts & Stats:** Introducing the DeFi Vaults Stablecoin Dashboard 🐦 **Last Week in Crypto Twitter (CT): Frax** experiments with tbills for V3, **Liquity** V2 is on the horizon, **Optimism** introduces new SuperChain governing structure, and more. 🏦 **DeFi Vault Spotlight:** MIM/USDC.e/USDT -------------------------------------------- This [**MIM/USDC.e/USDT**](https://app.beefy.finance/vault/spell-mim-crv) vault on Beefy (_via Arbitrum_) hasn't dropped below a 5% APY since it's inception! It also has a TVL of ~$2.2M which is a great sign for users with <=$10k funds, as your deposits won't rapidly dilute the rewards. _Note: USDC.e is a token representing USDC on Avalanche that was bridged from the Ethereum blockchain via the_ Avalanche Bridge. [![](https://storage.googleapis.com/papyrus_images/a2f76debe3cc22d6738fac2fc06ac3ae.png)](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9) **Risks:** * MIM depeg risk * USDC.e * depeg risk * bridge hack * USDT depeg risk **View more Stablecoin yields,** [**here**](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9)**.** 🧪 Ce/DeFi Stablecoin Strategy ------------------------------ ![](https://storage.googleapis.com/papyrus_images/c8aa7146001d70c853d610a63313188a.png) Ce/DeFi Stablecoin Yield Farming Strategy ### **Strategy** [Balancer's GHO/Boosted Aave v3 USD](https://app.balancer.fi/#/ethereum/pool/0xc2b021133d1b0cf07dba696fd5dd89338428225b000000000000000000000598) pool (_via Ethereum_) is receiving heavy emissions 💸. The pool currently holds a TVL of $5.5M and is rewarding depositors with a 17%-37% vAPY! I don't expect these emissions to last forever, so in order to diversify your position you can swap your $BAL rewards to crvUSD and deposit in Conic's Omnipool for 17%. This also helps maintain the APY of your initial deposits in Balancer as your not contributing to diluting the GHO/Boosted Aave v3 USD pool further. 1. Deposit $GHO into the GHO/Boosted Aave v3 USD pool on [Balancer](https://balancer.fi/) 2. Swap $BAL rewards for $crvUSD on [Uniswap](https://app.uniswap.org/) 3. Deposit $crvUSD into Omnipool on [Conic Finance](https://conic.finance/) ### **Risks:** * Stablecoin depeg risk: * GHO * USDC * USDT * crvUSD * Smart contract risk from depositing funds in multiple protocols 📊 DeFi Vaults **Stablecoin Dashboard** --------------------------------------- I've compiled my **top picks for stablecoin vaults** on each chain and compiled them into [**a neat dashboard**](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9) with the help of [@backtest\_dummy](https://twitter.com/backtest_dummy) (Blockchain data scientist). The point of this dashboard is to provide you **a quick overview of some of the best stablecoin yields on chain** (Ethereum, Arbitrum, Optimism, Polygon, and Avalanche). I am tracking the following metrics for each chain: * DEX volume * Stablecoin TVL And the following metrics for each vault: * TVL * APY [![](https://storage.googleapis.com/papyrus_images/564a186ce919a767a7a1f5b99418479d.png)](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9) Arbitrum Stablecoin Vaults Metrics [**This dashboard**](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9) **tracks the following vaults:** #### Ethereum * $eUSD+FRAX/USDC ([BeefyFinance](https://app.beefy.finance/vault/convex-eusdfraxbp)) * $hyUSD/$eUSD ([CurveFinance](https://curve.fi/#/ethereum/pools)) * $MIM/$DAI/$USDC/$USDT ([BeefyFinance](https://app.beefy.finance/vault/convex-mim)) * $R-DAI ([BeefyFinance](https://app.beefy.finance/vault/aura-r-dai)) * $TUSD/$DAI/$USDC/$USDT ([BeefyFinance](https://app.beefy.finance/vault/convex-tusd)) * $USDT ([IronBank](https://app.ib.xyz/lending)) #### **Polygon** * $DAI (gDAI vault) ([GainsNetwork](https://gains.trade/vault)) * $DAI/$USDR ([BeefyFinance](https://app.beefy.finance/vault/pearl-dai-usdr)) * $jEUR/$PAR ([BeefyFinance](https://app.beefy.finance/vault/balancer-jeur-par-v2)) * $MAI/$USDC ([BeefyFinance](https://app.beefy.finance/vault/quick-gamma-usdc-mimatic-stable)) * $USDC/$USDR ([BeefyFinance](https://app.beefy.finance/vault/pearl-usdc-usdr)) #### **Optimism** * $USDC (hot tub) ([Perp Protocol](https://vaults.perp.com/arbeth-usdc)) * $jEUR/$agEUR ([BeefyFinance](https://app.beefy.finance/vault/velodrome-v2-lusd-dai)) * $LUSD/$DAI ([BeefyFinance](https://app.beefy.finance/)) * $LUSD/$USDC ([BeefyFinance](https://app.beefy.finance/vault/velodrome-v2-usdc-lusd)) * $LUSD/$USDT ([BeefyFinance](https://app.beefy.finance/vault/velodrome-v2-usdt-lusd)) * $MAI/$USDC ([BeefyFinance](https://app.beefy.finance/)) #### **Avalanche** * $MAI/$DAI$USDC/$USDT ([BeefyFinance](https://app.beefy.finance/vault/mai-avax-mai-crv)) * $MAI/ $USDC ([BeefyFinance](https://app.beefy.finance/vault/solisnek-mai-usdc)) * $MIM/$USDT ([TraderJoe](https://traderjoexyz.com/avalanche)) * $USDT/ $USDC ([BeefyFinance](https://app.beefy.finance/vault/solisnek-usdt-usdc)) #### **Arbitrum** * $agEUR/$USDC.e ([BeefyFinance](https://app.beefy.finance/vault/solidlizard-ageur-usdc)) * $DAI ([BeefyFinance](https://app.beefy.finance/vault/hop-arb-dai)) * $MAI/$USDC.e ([BeefyFinance](https://app.beefy.finance/vault/ramses-mai-usdc)) * $MIM/$USDC.e/$USDT ([BeefyFinance](https://app.beefy.finance/vault/spell-mim-crv)) I am planning on adding links to each of the vaults within the dashboard, adding new vaults and chains, and including some other cool features to enhance overall UX/UI. Happy farming 🌾 👻. [View Dashboard](https://app.powerbi.com/view?r=eyJrIjoiNGUwODU3OTMtNmRkOC00NzZhLTllZmMtNWZiY2QxNmE2NmZiIiwidCI6ImJiMDA4MTE1LTkwMWEtNGU4Yy1hNWVlLTRlYzg1Y2FhZDA3NCIsImMiOjF9) 🐦 **Last Week in Crypto Twitter (CT)** --------------------------------------- For those who didn’t see on my Twitter, this is a bearish opinion on Pendle that was very thought provoking to read: [![User Avatar](https://pbs.twimg.com/profile_images/1676178602814222336/T0Wjx9CA_normal.jpg)](https://twitter.com/SillyPunts) [SimplePunts](https://twitter.com/SillyPunts) [@SillyPunts](https://twitter.com/SillyPunts) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/SillyPunts/status/1682442472805515264) INTRO and TLDR: Unlike what the influencers have claimed, [@pendle\_fi](https://twitter.com/pendle_fi) does not work. While I do appreciate the immense effort the team has put in, I cannot ignore the flaws I see in the protocol design. And here’s me taking a crack at Pendle. Read on to understand my view![👇](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f447.png) ![](https://pbs.twimg.com/media/F1kznOTaUAE0xih.png) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 288](https://twitter.com/SillyPunts/status/1682442472805515264)[ 1:28 PM • Jul 21, 2023 ](https://twitter.com/SillyPunts/status/1682442472805515264) Liquity V2 looks to be interesting. They’re targeting hedging with this upgrade. [![User Avatar](https://pbs.twimg.com/profile_images/1247198364707545089/zEgsUkSu_normal.jpg)](https://twitter.com/LiquityProtocol) [Liquity](https://twitter.com/LiquityProtocol) [@LiquityProtocol](https://twitter.com/LiquityProtocol) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/LiquityProtocol/status/1682241875451707392) Solving the holy grail of delta-neutral hedging ![🌟](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f31f.png) One of the main challenges that protocols with a decentralized reserve have faced is that when there’s not enough demand for leverage = there can be very high hedging costs, which can cause immense strain for the protocol.… ![](https://pbs.twimg.com/media/F1h2JLwWcAELipT.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 128](https://twitter.com/LiquityProtocol/status/1682241875451707392)[ 12:11 AM • Jul 21, 2023 ](https://twitter.com/LiquityProtocol/status/1682241875451707392) [![User Avatar](https://pbs.twimg.com/profile_images/1247198364707545089/zEgsUkSu_normal.jpg)](https://twitter.com/LiquityProtocol) [Liquity](https://twitter.com/LiquityProtocol) [@LiquityProtocol](https://twitter.com/LiquityProtocol) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/LiquityProtocol/status/1682465694099599360) Innovation #2: The secondary market The secondary market refers to a marketplace within Liquity v2, where users can buy and sell their hedging positions. The secondary market plays a crucial role in helping to mitigate the risks for the protocol. How ![❓](https://twemoji.maxcdn.com/v/14.0.2/72x72/2753.png) When users want to… ![](https://pbs.twimg.com/media/F1lBzjAX0AMXykZ.png) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 43](https://twitter.com/LiquityProtocol/status/1682465694099599360)[ 3:00 PM • Jul 21, 2023 ](https://twitter.com/LiquityProtocol/status/1682465694099599360) GRAIN airdrop eligibility list is live! Depending on your size, it’s not very much. In addition, the liquidity is pretty thin at this time and a lot of airdrop farmers are looking to dump. So, what am I going to do? I’m going to drop it in an LP and yield off of it because by the time I claim, the token value is going to drop pretty quickly. We need to give GRAIN time to get some fundamentals in line before the returns are nice, so if you believe in them long term, selling this airdrop for Pennies isn’t really worth it: [![User Avatar](https://pbs.twimg.com/profile_images/1654558635366952960/QoprKMSC_normal.jpg)](https://twitter.com/GranaryFinance) [The Granary 🌾](https://twitter.com/GranaryFinance) [@GranaryFinance](https://twitter.com/GranaryFinance) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/GranaryFinance/status/1683645824277057537) Hello, Farmers! A list of eligible airdrop users can be found on our GitHub at: [github.com/The-Granary/ai…](https://t.co/ZmyT0cEWhj). Happy farming! [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 164](https://twitter.com/GranaryFinance/status/1683645824277057537)[ 9:10 PM • Jul 24, 2023 ](https://twitter.com/GranaryFinance/status/1683645824277057537) Pendle will be deploying on Manyle, a newer alt L1 that has caught some buzz on CT: [![User Avatar](https://pbs.twimg.com/profile_images/1621033017337843713/loDsYCJr_normal.jpg)](https://twitter.com/pendle_fi) [Pendle](https://twitter.com/pendle_fi) [@pendle\_fi](https://twitter.com/pendle_fi) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/pendle_fi/status/1683824208126832640) Pendle to the Mantle ![🚀](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f680.png) We're excited to share that Pendle is a proud recipient of the [@0xMantle](https://twitter.com/0xMantle) Ecosystem grant! With this, we'll be going full speed ahead to bring the power of yield management to Mantle, seeding and nurturing an [#LSD](https://twitter.com/hashtag/LSD) economy within the ecosystem ![🌱](https://twemoji.maxcdn.com/v/14.0.2/72x72/1f331.png)… ![](https://pbs.twimg.com/media/F14keWHaYAAnqOG.png) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 635](https://twitter.com/pendle_fi/status/1683824208126832640)[ 8:59 AM • Jul 25, 2023 ](https://twitter.com/pendle_fi/status/1683824208126832640) Interesting news from Optimism, giving the community power over the SuperChain: [ ![](https://mirror-media.imgix.net/publication-images/_SSd1aTAI7PrtmDavpALT.png?height=1500&width=3000&h=1500&w=3000&auto=compress) https://optimism.mirror.xyz Introducing the Law of Chains ----------------------------- The OP Stack was built to be the most forkable, modular scaling infrastructure out there. When we introduced it, we explained that it was our bet on the ingenuity of the entire Ethereum community. ](https://optimism.mirror.xyz/JfVOJ1Ng2l5H6JbIAtfOcYBKa4i9DyRTUJUuOqDpjIs) ### Additional: Frax is experimenting with RWAs and tbills, for V3 Launch: [![User Avatar](https://pbs.twimg.com/profile_images/1684666271869075456/eiK2R5VI_normal.jpg)](https://twitter.com/Cryptovestor77) [Cryptovestor](https://twitter.com/Cryptovestor77) [@Cryptovestor77](https://twitter.com/Cryptovestor77) [![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/Cryptovestor77/status/1685262610084560896) More supporting docs regarding launch of frax V3. $FXS will become the onchain version of circle with one major difference you earn the tbill yield not circle! ![](https://pbs.twimg.com/media/F2NBaFxXAAAjw_S.jpg) [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 51](https://twitter.com/Cryptovestor77/status/1685262610084560896)[ 8:14 AM • Jul 29, 2023 ](https://twitter.com/Cryptovestor77/status/1685262610084560896) * * * Thanks for reading the Defi Vaults Newsletter! Subscribe for free to receive DeFi yields, and insights straight to your inbox, every week. [Subscribe](https://paragraph.xyz/@defivaults/subscribe) --- *Originally published on [Defi Vaults](https://paragraph.com/@defivaults/defi-vaults-issue-65)*