# DeFi Vaults Issue #70

> DeFi Market Research | zkSync Stablecoin Strategy, USDC/LUSD 20% APR, and more.

**Published by:** [Defi Vaults](https://paragraph.com/@defivaults/)
**Published on:** 2023-10-15
**URL:** https://paragraph.com/@defivaults/defi-vaults-issue-70

## Content

⚡️What’s new?⚡️🏦 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?, $USDR depeg, Yearn updates tokenomics, and more🏦 DeFi VaultsLiquid Staked TokensMATICx LP - 4.6% (StaderLabs)mSOL - 8.2% (Marinade.Finance)sAVAX - 5.96% (BENQI)frxETH - ~3.8% (Frax Finance)ETH+ - 3.15% (Reserve Protocol)Stablecoin Yields ListEthereum$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)Polygon$DAI (gDAI vault) - 7.8% APY⬆️ (GainsNetwork)$jEUR/$PAR - 7.3% APY (BeefyFinance)$MAI/$USDC - 16.5% APY⬆️ (BeefyFinance)Optimism$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)Avalanche$MIM/$USDT - 3% APY⬇️ (TraderJoe)DAI.e/USDC - 5.4%⬆️ (TraderJoe)Arbitrum$agEUR/$USDC.e - 3.0% APY (BeefyFinance)$DAI - 3.75% APY⬇️ (BeefyFinance)$MIM/$USDC.e/$USDT - 7.2% APY (BeefyFinance)zkSync$cbUSD/$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)📊Charts & StatszkSync Experiences High on-chain Volume leading to Great Yield Opportunities for FarmersTL;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).Primer on zkSync ErazkSync 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. What's The Alpha?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: DEX Volume & DEX TVLWhile 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:Overall TVLUpon closer examination of zkSync's standing among Layer 2 networks, it holds the #4 position, positioned just below Base:L2 TVL & Market ShareHowever, 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 vs. Base Daily TransactionszkSync vs. Base Daily Active AddressesHow Does This Affect Farmers?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:Volume by DEXUpon 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! 👩‍🌾🌾 Yield Farming 101zkSync Stablecoin Strategy -PancakeSwap to MaverickStrategyFarm Diversified Stablecoins on zkSync Era: Farm BUSD/USDT and Use $CAKE farm rewards to create USDC/LUSDSwap $500 50/50 for $BUSD and $USDTCreate BUSD/USDT LP on Pancake SwapEnter BUSD/USDT LP Farm for a ~19% APRSwap $CAKE rewards 50/50 for $USDC and $LUSDCreate USDC/LUSD LP on Maverick ProtocolEnter USDC/LUSD LP Farm for a ~20% APRRisks: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🐦 Last Week in Crypto Twitter (CT)USDR Depeg Bluechip @bluechip_org $USDR, a dollar-pegged stablecoin, is currently trading at $0.53 after a wave of redemptions depleted all of its liquid collateral. Anyone familiar with Bluechip's rating framework could've predicted USDR's failure. It violates a cardinal rule which instantly earns an F rating.… 102 4:59 AM • Oct 12, 2023 Solana shows promising future of facilitating payments worldwide Galaxy Research @glxyresearch More than 2/3 of USDC txs on @solana are transfers of less than $100, and more than 1/3 of USDC txs are transfers between $1-$10. The high frequency of small, dollar-denominated txs on Solana highlights the network's potential for supporting payments activity. 449 2:39 PM • Oct 6, 2023 Solana Token2022 is making waves! Top Ledger @ledger_top Over 1.25 million transactions have occurred via the Solana Token2022 Program to date. The Solana ecosystem is advancing quickly with its high-speed and low-cost features. The Token2022 has birthed 4,365 tokens so far, with 2,670 being fungible. Dashboard:… 31 4:53 PM • Oct 12, 2023 The DeFi Investor documents the latest developments in DeFi The DeFi Investor 🔎 @TheDeFinvestor 𝐓𝐡𝐞 𝐥𝐚𝐭𝐞𝐬𝐭 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐃𝐞𝐅i • Frax Finance has dropped the docs for Frax V3 and launched sFRAX. sFRAX enables stablecoin holders to earn yield from T-bills • Solana has added native support for private blockchain transactions. The latest… 214 6:33 AM • Oct 12, 2023 Yearn updates tokenomics yearn @yearnfi Yearn’s tokenomics are getting a facelift. Let’s carefully remove our scalpel and peel back the supple skin of how veYFI works. Mmm, cosmetic surgery analogies. veYFI integrates YIP-56: Buyback and Build funds into YFI tokenomics. Users can stake vault tokens for YFI rewards… 72 10:56 AM • Oct 11, 2023 That's all for this issue of DeFi Vaults, stay up on your research, and happy farming! 👩‍🌾Thanks for reading Defi Vaults Newsletter! Subscribe for free to receive DeFi yields, and insights straight to your inbox, every week.

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