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🏦 DeFi Vaults: The Best LST and Stablecoin Yield Opportunities
📊 Charts & Stats: zkSync accounts for 7.74% of the total on-chain volume leading to Great Yield Opportunities for Farmers
🌾 Yield Farming 101: zkSync Stablecoin Strategy -PancakeSwap to Maverick Protocol
🐦 Last Week in Crypto Twitter (CT): Is Solana the perfect network for payments?, $USDR depeg, Yearn updates tokenomics, and more
MATICx LP - 4.6% (StaderLabs)
mSOL - 8.2% (Marinade.Finance)
sAVAX - 5.96% (BENQI)
frxETH - ~3.8% (Frax Finance)
ETH+ - 3.15% (Reserve Protocol)
$eUSD+FRAX/USDC - 6.25% APY⬆️ (CurveFinance)
$hyUSD/$eUSD - 8.05% APY (CurveFinance)
$MIM/$DAI/$USDC/$USDT - 6.42% APY (BeefyFinance)
$R-DAI - 8.55% APY (BeefyFinance)
$TUSD/$DAI/$USDC/$USDT - 2.54% APY⬆️ (BeefyFinance)
$USDT - 10.14% APY (IronBank)
$DAI (gDAI vault) - 7.8% APY⬆️ (GainsNetwork)
$jEUR/$PAR - 7.3% APY (BeefyFinance)
$MAI/$USDC - 16.5% APY⬆️ (BeefyFinance)
$USDC (hot tub) - 6.5% APY⬆️ (Perp Protocol)
$jEUR/$PAR - 7.35% APY (BeefyFinance)
$LUSD/$DAI - 5% APY (BeefyFinance)
$LUSD/$USDC - 3.0% APY (BeefyFinance)
$LUSD/$USDT - 7.6% APY⬆️ (BeefyFinance)
$agEUR/$USDC.e - 3.0% APY (BeefyFinance)
$DAI - 3.75% APY⬇️ (BeefyFinance)
$MIM/$USDC.e/$USDT - 7.2% APY (BeefyFinance)
$cbUSD/$USDC - 10% APR (MaverickProtocol)
$USDC/$LUSD - ~20% APR (MaverickProtocol)
USD+/USDC - 17% APR (PancakeSwap)
BUSD/USDT - 19% APR (PancakeSwap)
USDT/USDC - 10% APR (PancakeSwap)
BUSD/USDC - 16% APR (PancakeSwap)
TL;DR:
zkSync ranks #3 in DEX volume, an impressive feat considering it holds the 19th position in total value locked (TVL) among all Layer 1 and Layer 2 solutions.
The cumulative volume on zkSync ($8.30 billion), contributes to a substantial 7.74% of the total on-chain volume.
Currently, zkSync boasts approximately 155% more Daily Active Addresses than Base and processes about 129% more transactions.
Stablecoin farmers can reap the benefits of high double-digit yields, thanks to the elevated on-chain volume. This, in turn, leads to more robust fees for liquidity providers (LPs).
zkSync Era is a layer 2 protocol designed to enhance Ethereum's security and capabilities through zero-knowledge cryptography. It employs a robust ZK technology stack, incorporating an LLVM-based Solidity compiler, an acclaimed GPU prover, and the cutting-edge Redshift proof system. This combination drastically reduces transaction costs to a fraction of a penny. Additionally, zkSync Era offers cost-effective storage, significantly decreasing expenses compared to Layer 1.
zkSync has handled an immense volume of transactions. Over the past seven days, traders have executed swaps amounting to a staggering $573.7 million in DEX volume:
While holding the #19 spot for overall TVL, zkSync ranks among the top 3 chains by DEX volume. This highlights the active trading ecosystem on zkSync, with traders capitalizing on the network's low fees and high-speed transactions:
Upon closer examination of zkSync's standing among Layer 2 networks, it holds the #4 position, positioned just below Base:
However, it's worth noting that its position is dynamic and subject to change. Currently, it's approximately $133 million below Base in terms of TVL, a relatively narrow margin.
Moreover, zkSync boasts approximately 155% more Daily Active Addresses compared to Base. Impressively, it has recently surpassed Base in Daily Transactions, processing about 129% more transactions than Coinbase's L2:
zkSync is handling a substantial volume relative to its TVL, and this increased volume results in higher fees, benefiting liquidity providers (LPs).
To begin our search for yield, we can turn to Maverick Protocol, one of zkSync's largest DEXes, currently holding the #3 spot in terms of 7-day DEX volume:
Upon closer examination of the LP vaults, we find numerous double-digit APRs available:
Farmers should monitor zkSync's volume as the weeks progress, as currently, the yield opportunities are abundant. Additionally, zkSync is preparing for an upcoming airdrop, which is anticipated to substantially boost on-chain volume!
A clear illustration of how trading volume impacts fees can be observed on Pancakeswap through zkSync. Upon examining farms on PancakeSwap, it becomes evident that the LP fee APR (auto-compound yield) surpasses the farm APR (in $CAKE rewards) for many of the stablecoin LPs:
if you're interested in farming on zkSync, i've provided a list of bridge's here.
zkSync supports swaps from Arbitrum, BNB Chain, Ethereum, and more!
Happy Farming! 👩🌾
Farm Diversified Stablecoins on zkSync Era: Farm BUSD/USDT and Use $CAKE farm rewards to create USDC/LUSD
Swap $500 50/50 for $BUSD and $USDT
Create BUSD/USDT LP on Pancake Swap
Enter BUSD/USDT LP Farm for a ~19% APR
Swap $CAKE rewards 50/50 for $USDC and $LUSD
Create USDC/LUSD LP on Maverick Protocol
Enter USDC/LUSD LP Farm for a ~20% APR
Smart Contract risk from interacting with multiple protocols
Price divergence risk: Depending on the parameters you set for liquidity provision you're LPs profitability may vary
USDR Depeg
Solana shows promising future of facilitating payments worldwide
Solana Token2022 is making waves!
The DeFi Investor documents the latest developments in DeFi
Yearn updates tokenomics
That's all for this issue of DeFi Vaults, stay up on your research, and happy farming! 👩🌾
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