Couldn't sleep so Pill went diving into yield opportunities on $ARB @arbitrum
Went from "I'll just check one protocol" to "wow there's 23% APY here on stables"
From trading platforms like @OstiumLabs to yield hubs like @pendle_fi and @0xfluid...
You don't want to miss out đ
With multi-billions in TVL and dozens of yield opportunities, @arbitrum presents itself as a destination for stablecoin yield farming, offering a perfect blend of high returns, battle-tested protocols, and significantly lower gas fees than Ethereum.
I'll be going through 4 different tiers â
Tier 1: Conservative Plays (5-7% APY)
Tier 2: Balanced Approach (8-15% APY)
Tier 3: The Aggressive Plays (16-27% APY)
Let's go through each of them!
â Tier 1: The Conservative Plays (5-7% APY)
Protocol: @GainsNetwork_io
Strategy: Deposit USDC into gUSDC vault
APY: 5.71%
Risk Level: Low
Gains Network's gUSDC vault represents one of the most straightforward yield opportunities on Arbitrum.
Simply deposit USDC and earn consistent returns backed by the protocol's trading fees.
ââ Tier 2: The Balanced Approach (8-15% APY)
Protocols: @StablesLabs and @Balancer
Strategy: USDX â sUSDX â Balancer LP
APY: Up to 8% + S-Points + $BAL incentives
Risk Level: Medium
This strategy requires multiple steps but offers some of the highest returns in the conservative-to-moderate risk category.
The combination of base yield, points, and BAL incentives creates a compelling risk-adjusted return profile.
Protocol: @0xfluid
Strategy: Single-sided USDT deposit
APR: 8.57%
Risk Level: Low
Often overlooked, Fluid's USDT pool offers solid returns with minimal complexity. Simply swap USDC to USDT and deposit into their single-sided pool.
The beauty lies in its simplicity and consistent performance.
Protocol: @CamelotDEX
Strategy: USDT-USDC v3 liquidity provision
APY: 14.27% APR average
Risk Level: Medium-High
Camelot's v3 pools offer concentrated liquidity positions that can generate impressive returns.
The USDT-USDC pair is particularly attractive due to the tight correlation between assets, minimising impermanent loss while maximising fee generation.
âââ Tier 3: The Aggressive Plays (16-27% APY)
Protocol: @OstiumLabs
Strategy: OLP-USDC liquidity pool
APY: 16.60%
Risk Level: Medium-High
*Note: Withdrawal available after 3 epochs
Ostium's OLP-USDC pool offers exceptional returns but comes with a liquidity constraint.
The 3-epoch withdrawal requirement means you need to plan your liquidity needs carefully, but the 16.60% APY makes it worth considering for funds you don't need immediate access to.
Protocol: @0xfluid
Strategy: sUSDS/USDC-USDT loop
Max Multiplier: 14.28x
Max Leverage APY: 19.51%
Risk Level: High
For those comfortable with leverage, Fluid's multiply feature offers the highest risk-adjusted returns in the ecosystem. The 14.28x multiplier on the sUSDS/USDC-USDT loop can generate impressive yields, but requires constant monitoring and risk management.
Protocol: @spectra_finance
Strategy: USDx pool deposit
APY: 16-27% (with veBoost) + X-Points
Risk Level: High
Spectra's USDx pool represents the top tier of yield opportunities, combining high base APY with valuable points multipliers.
The veBoost mechanism rewards long-term commitment with progressively higher yields, making it ideal for dedicated yield farmers.
Pill thinks you can consider starting w conservative strategies to understand the ecosystem, then gradually increase exposure to higher-yield opportunities as you gain experience.
The beauty of Arbitrum's yield landscape is that it offers something for every risk tolerance.
Always remember: sustainable yield farming is about consistency, not chasing the highest APY.
Focus on building a diversified portfolio of yield strategies that align w your risk tolerance and liquidity needs.
If you'd like to understand the state of activity on Arbitrum đ
Sharing stable yields on Arbitrum w Pill's frens â
@monosarin
@0xAndrewMoh
@CryptoShiro_
@poopmandefi
@0xelonmoney
@eli5_defi
@marvellousdefi_
@0xCheeezzyyyy
@crypto_linn
@YashasEdu
@CipherResearchx
@splinter0n
@iam_LeriK
@TweetByGerald
@CryptoGideon_
@belizardd
@lenioneall
@FabiusDefi
@St1t3h
@the_smart_ape
@cryppinfluence
@TheDeFiPlug
@0xMrDiaz
@defi_mago
@0xDefiLeo
@kenodnb
@bullish_bunt
@AlwaysBeenChoze
@Mars_DeFi
@nursexxl
@0xTindorr
@Tanaka_L2
@PenguinWeb3
What are your thoughts?
Thanks for reading till the end, hope you enjoyed it!
Disclaimer: All opinions expressed remain objective, and are for informational and/or entertainment purposes only. NFA, as always DYOR.
Pill will be diving deeper and sharing more alpha along the way!
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