plummet wash face, which stablecoin yield farming pools are safe havens now?

Author: Charlie

Compiled by: DeepTech TechFlow

In the current market environment, leveraging stablecoins to generate yield is one of the effective ways to meet the challenges and achieve growth. In this article, we’ll look at some of the risk-adjusted earnings opportunities to watch out for in no particular order.

HLP (Hyperliquidity Provider)

Currently, the Hyperliquidity Provider (HLP) treasury on the Hyperliquid platform offers a yield of 18.61%, which is a sustainable and stable source of return. According to the official description, HLP provides liquidity for Hyperliquid through a variety of market-making strategies, while also executing liquidation operations and accruing platform trading fees.

It is important to note that the performance of HLP is usually not balanced. Over a long period of time, the returns may remain stable or slightly increase, but during the liquidation event, there is often a significant single-day return:

However, due to the closed operation mechanism of HLP, depositors rely entirely on the professional ability of the Hyperliquid team, so there is a certain “black swan risk” (potential loss caused by extreme events). However, it is worth trusting that the data shows that traders on average lose, so in the long run, the HLP treasury may have sustainable profitability. In addition, depositors need to be aware that funds deposited in HLP need to be locked for 4 days before they can be withdrawn.

Sky Money

Sky Money is the new brand of MakerDAO, currently providing the following two options for stablecoin depositors:

By depositing into the Rewards Vault (Rewards Vault), you can earn a return of 8.52%, paid in SKY.

Deposit (Savings Vault) into the savings vault and earn 6.5% of the yield, paid in USDS (which is also the new DAI savings rate).

In contrast, the higher returns of the reward pool are obviously more attractive, and the risk levels of the two choices are quite similar. Depositors in the reward pool can also accumulate SKY tokens, which we believe are currently undervalued by the market. Choosing to hold and accumulate SKY, rather than simply ‘mining and selling,’ may bring additional growth potential to the nominal yield.

Ethereal

Ethereal is a decentralized perpetual contract trading platform that has a close relationship with and is supported by the Ethena team. It is reported that the platform will be launched on the “Ethena Network” and become a tool used by the Ethena team to hedge spot long positions, thereby reducing the flow of funds to centralized exchanges (CEX).

Currently, Ethereal is conducting a loyalty program called ‘Season Zero’, where users who deposit USDe can accumulate Ethereal points and receive 30 times the Ethena reward (specific benchmarks are not yet clear, but it can be assumed that some $ENA tokens will be rewarded to depositors).

The current annualized return rate of this opportunity is (APR), which is not yet clear. I expect it to be between 15%-20%, depending on the issuance price of the Ethereal token. Due to the lack of transparent income information, there may be some risk from the perspective of opportunity cost. However, in any case, I think this is an opportunity worth paying attention to in the stablecoin yield portfolio.

AO

AO remains a low-key project for many market players. We actually reported on this back in May 2024. AO has long run pre-deposit-like mining campaigns, but with the completion of a recent token generation event, its annualized yield has been confirmed:

1 DAI can earn 0.004424 AO per year, so based on the current AO price ($32.49), the APR is 14.37%.

Similar to Sky and Ethereal, mining AO can currently generate decent returns through the ‘mine and sell’ approach, and you can also choose to hold AO. If you choose to hold, there may be greater potential for appreciation in the future, providing additional room for the current APR to rise.

Berachain

The native DEX of Berachain provides some interesting opportunities, such as the USDC.e/HONEY liquidity pool, which currently pays a yield of 13.79%, denominated in BGT. BGT is a non-transferable soul-bound token, but can be burned and exchanged for BERA at a 1:1 ratio. Miners can choose to sell immediately to realize the current APR, or accumulate BGT, betting on the future development of the Berachain ecosystem (which has recently been gradually heating up).

Sonic

Sonic is conducting a massive airdrop mining campaign, distributing hundreds of millions of dollars in S tokens to incentivize the growth of the ecosystem. This creates some unique opportunities for yield miners that deserve further attention and research.

Shadow Exchange is a native decentralized exchange (DEX) in the ecosystem that offers a number of attractive stablecoin investment opportunities. Among them, the following two options are particularly noteworthy:

USDC.e/scUSD: 28.9% APY

USDC.e/USDT: Annualized yield is 35.3%

Navigator Exchange is a GMX-based fork project that has launched a GLP/JLP-like product called NLP. It is important to note that this product may be subject to certain price fluctuation risk (Delta risk) due to the inclusion of S, BTC and ETH in its portfolio. Currently, NLP offers the following rates of return:

35.60%, paid in the form of S tokens

131.71%, paid in esNAVI tokens