In the current market environment, using stablecoins to generate returns is one of the effective ways to address challenges and achieve growth. This article will introduce some risk-adjusted yield opportunities worth noting (in no particular order).
HLP (Hyperliquidity Provider)
Currently, the Hyperliquidity Provider (HLP) vault on the Hyperliquid platform offers a yield of 18.61%, which is a continuous and stable source of returns. According to the official description, HLP provides liquidity to Hyperliquid through various market-making strategies, while also executing liquidation operations and accumulating platform trading fees.
It is worth noting that the HLP yield performance is usually uneven. Over a longer period, the yield may remain stable or slightly increase, but during liquidation events, there may be significant single-day returns:
However, due to the relatively closed operation mechanism of HLP, depositors are entirely dependent on the professional capabilities of the Hyperliquid team, and thus there is a certain "black swan risk" (i.e., potential losses caused by extreme events). However, the data shows that traders' average losses, so in the long run, the HLP vault may have a sustainable profitability. Additionally, depositors should note that funds deposited in HLP need to be locked for 4 days before they can be withdrawn.
Sky Money
Sky Money is a new brand of MakerDAO, and currently offers the following two options for stablecoin depositors:
· Depositing into the Rewards Vault can earn a yield of 8.52%, paid in SKY.
· Depositing into the Savings Vault can earn a yield of 6.5%, paid in USDS (which is also the new DAI savings rate).
Comparatively, the higher yield of the Rewards Vault is more attractive, and the risk levels of the two options are similar. Depositors in the Rewards Vault can also accumulate SKY tokens, which we believe are currently undervalued by the market. If one chooses to hold and accumulate SKY instead of simply "mining and selling", it may bring additional growth potential to the nominal yield rate.
Ethereal
Ethereal is a decentralized perpetual contract trading platform, closely related to and supported by the Ethena team. It is reported that the platform will be launched on the "Ethena Network" and become a tool for the Ethena team to hedge their spot long positions, thereby reducing capital flows to centralized exchanges (CEXs).
Currently, Ethereal is conducting a "Season Zero" points program, where users who deposit USDe can accumulate Ethereal points and receive 30x Ethena rewards (the specific benchmark is not yet clear, but it can be assumed that a portion of $ENA tokens will be rewarded to depositors).
The current annualized yield rate (APR) of this opportunity is not yet clear, but I estimate it may be between 15%-20%, depending on the issuance price of the Ethereal token. Due to the lack of transparent yield information, there may be certain risks from an opportunity cost perspective. Nevertheless, I believe this is an opportunity worth noting in the stablecoin yield portfolio.
AO
AO is still a low-profile project for many market participants. We actually reported on this as early as May 2024. AO has long been running a mining-like pre-deposit activity, but with the recent completion of the token generation event, its annualized yield rate 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 yields through "mining and selling", but one can also choose to hold AO. If chosen to hold, there may be greater appreciation potential in the future, providing additional upside to the current APR.
Berachain
Berachain's native DEX offers some interesting opportunities, such as the USDC.e/HONEY liquidity pool, which currently pays a 13.79% yield in the form of BGT. BGT is a non-transferable soul-bound token, but can be burned and redeemed 1:1 for BERA. Miners can choose to sell immediately to realize the current APR, or accumulate BGT and stake in the Berachain ecosystem (which has been gradually heating up recently).
Sonic
Sonic is conducting a massive airdrop mining campaign, distributing hundreds of millions of dollars worth of S tokens to incentivize the growth of the ecosystem. This creates some unique opportunities for yield miners that are worth further attention and research.
Shadow Exchange is a native decentralized exchange (DEX) in the ecosystem, offering many attractive stablecoin investment opportunities. Two options are particularly worth noting:
· USDC.e/scUSD: 28.9% annualized yield
· USDC.e/USDT: 35.3% annualized yield
Navigator Exchange is a GMX-based fork project that has also launched a product similar to GLP/JLP, called NLP. This product should be noted that due to its investment portfolio including S, BTC and ETH, it may face certain price volatility risks (Delta risk). Currently, the returns of NLP are as follows:
· 35.60%, paid in S tokens
· 131.71%, paid in esNAVI tokens
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