Research Summary
The report discusses five DeFi projects, namely Blast, Camelot, Hyperliquid, MUX Protocol, and Trader Joe, which offer lucrative yield farming opportunities. It provides an overview of each project, their unique features, and the potential returns for liquidity providers.
Key Takeaways
Blast’s DeFi-focused L2
- Blast’s Attraction: Blast, a DeFi-focused L2, has attracted over $400M in Total Value Locked (TVL) through its points program. Users can deposit and refer others to earn points, which will be redeemable for an airdrop in the future.
- Capital Lockup: Users cannot withdraw from Blast until February, implying a three-month lockup of capital. Users can also stake $BLUR to farm Blast points.
Camelot’s Yield Opportunities
- Lucrative Yield: Camelot, a trading hub on Arbitrum, offers lucrative yield farming opportunities. Some of the favorite pairs to farm include SOL/USDC @ 170% APR, ARB/USDC @ 125% APR, ETH/USDC @ 100% APR, and stEUR/USDC @ 33% APR.
Hyperliquid’s Perpetual Futures
- Volume Achievement: Hyperliquid, a perpetual futures order book on Arbitrum, has recently reached $10B in total volume.
- Profitable Vault: The Hyperliquid HLP vault has been extremely profitable lately, currently earning depositors a 100%+ APY in real yield. Hyperliquid has also launched a points program, and LPs can earn an airdrop in the process.
MUX Protocol’s Stable Yield
- Stable Yield: Mux, a DeFi project, offers a stable yield in ETH for liquidity providers. LPs are currently earning 35% APR paid in ETH while holding a basket of blue-chip assets.
Trader Joe’s Liquidity Incentives
- Innovative Competitor: Trader Joe, an Automated Market Maker (AMM) on Arbitrum, Avalanche, BNB, and Ethereum, has proven to be an innovative competitor to standard concentrated liquidity DEXs. $JOE has also just stopped emissions altogether.
- Liquidity Incentives: Trader Joe has been incentivizing liquidity with the ARB STIP incentives. Some of the lucrative farms to take advantage of include ETH/USDC @ 169% APR, ARB/ETH @ 133% APR, USDT/USDC @ 16% APR, and PENDLE/ETH @ 238% APR.
Actionable Insights
- Consider the Lockup Period: When considering yield farming on platforms like Blast, it’s important to factor in the lockup period. In this case, users cannot withdraw from Blast until February, which means locking up capital for three months.
- Explore Diverse Yield Opportunities: Platforms like Camelot offer a variety of pairs for yield farming, providing opportunities to diversify and potentially increase returns.
- Monitor High-Volume Platforms: High-volume platforms like Hyperliquid can offer profitable opportunities, as demonstrated by the Hyperliquid HLP vault’s current 100%+ APY in real yield.
- Consider Stable Yield Options: For those seeking stability, MUX Protocol offers a stable yield in ETH, which could be an attractive option.
- Look for Liquidity Incentives: Platforms like Trader Joe that offer liquidity incentives can provide lucrative yield farming opportunities.
