Finding Low-Risk Yields
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| Prices as of 6pm ET | 24hr | 7d |
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Crypto $3.00T | ↘ 3.2% | ↘ 10.2% |
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Crypto yield markets have assumed a notably heightened risk profile over the past month following a slew of lending market mishaps, making it more important than ever to understand the mechanics behind the farms you’re depositing into.
Today, we’re breaking down five of the most popular crypto yield opportunities that exist, weighing the risk versus the rewards of each yield generation model.
Read on for core onchain opportunities you can’t afford not to understand 👇
🕰️ Pendle
Website | Twitter
Best For: Guaranteed Yield
Risk Level: Variable
Reward Level: Low to High
About:
Pendle is a yield splitting protocol, a special type of DeFi primitive that creates two distinct tokens: principal tokens (PTs) and yield tokens (YTs). The first can be redeemed for an underlying crypto asset at a specified future date, and the second represents a claim to all yield generated from that asset in the interim.
Using PTs, Pendle yield farmers can safely guarantee their yields until a specified future date, denominated in units of the underlying asset. PT holders can also redeem early by purchasing an equivalent amount of YTs, which can be used in combination to create a liquidity provider position and redeemed for the underlying.
While Pendle users are responsible for evaluating the safety of the individual yield markets they deposit into, there is zero risk of protocol-wide contagion if the value of any single Pendle-onboarded crypto asset becomes impaired. The Protocol’s smart contract logic is solely responsible for ensuring that users can redeem their tokens for a pre-specified amount of underlying assets, insulating the broader system from any specific asset shocks.
Exponent Finance is a popular alternative to Pendle deployed to the Solana Network, yet the benefits of network effects and trusted reputation in this sector are undeniable; Pendle’s lesser known competitor safeguards just 2% of the segment leader’s total value locked.
Top Yield Opps:
Get risky and receive a guaranteed 21% APY on sUSDai (a GPU-backed stablecoin) for the next three months, play it safe and lock in 3% APY on Lido’s stETH until Christmas Eve, or select another risk-return combination that meets your needs with Pendle’s principal tokens.
Bit Digital: The premier ETH treasury that combines the two greatest assets of our time—ETH & AI compute. Harness massive Ethereum holdings with institutional-grade staking for optimized rewards, while powering cutting-edge AI infrastructure for unparalleled innovation. Unlock the future of digital assets where blockchain meets intelligent computing.
*We’re being compensated by Bit Digital (NASDAQ: BTBT) for this ad promoting their company and BTBT. The compensation is paid in cash as a one-time payment. You can find additional information about Bit Digital and BTBT on their Investor page at bit-digital.com/investors. Not investment advice.