Some DeFi Yield Could Still Be Higher Than 10-year US Treasurys

Though the 10-year US Treasury yield increased by four basis points on Monday, DeFi is still offering attractive alternatives


William Potter/Shutterstock modified by Blockworks


The rising 10-year yield on US Treasury bills, which increased by four basis points to 3.506% on Monday, is now higher than many yields that can be earned via DeFi protocols. 

The Treasury yield increase hit on Monday as Federal Reserve Chair Jerome Powell suggested interest rate hikes could soon come to an end. The 10-year Treasury yield is one metric of investor confidence in the US market. 

At 3.506%, its yield over a decade is now clocking in higher than many DeFi yield-bearing opportunities. 

In DeFi, investors often earn yield through yield farming, that is, the process of earning rewards through providing liquidity to token pairs or trading pools.

Decentralized protocols such as Aave, Curve and Compound are often used to facilitate yield farming. 

Aave’s annual percentage yield (APY) on stablecoins such as USDC, USDT and DAI are currently at 2.57%, 2.43% and 2.71% respectively.

Compound’s APY for these tokens sit at 1.93%, 2.50% and 1.66%

Curve’s 3pool’s base APY is at 0.07% with 0.52% – 1.32% in token APY rewards.

Varying DeFi yields may beat Fed’s rate

Although such large DeFi players may not be currently offering higher yields than the Treasury, DeFi yields do vary across the board. 

Liquid staking derivatives and service providers on Ethereum — such as Lido, Rocket Pool and Frax Finance — have been offering alluring alternatives to US-backed bonds. 

Staking is the process of locking up tokens to participate in the network security of a proof-of-stake blockchain. 

Liquid staking derivatives enable token holders to put their tokens that would otherwise sit idly to use, and these protocols have since become a popular investment model.

Lido, one of the largest staking protocols, with over 6.6 million ether (ETH) staked on its platform, offers a 6.0% annual percentage rate (APR) to customers who lock their ETH onto its platform. 

Similarly, Rocket Pool offers around 5.17% APR in ETH to customers interested in participating in staking — and around 6.98% APR in ETH and rocket pool rewards to those interested in running a node and stake on its platform.

Frax Finance, especially, is offering attractive returns. Its VST/FRAX pool is offering a base of 6% APR to stakers, but its base APR could be upwards of 20%.

Loading Tweet..

Ethereum is not the only network offering attractive staking solutions. Abundant liquid staking options are also available via Cosmos and Solana as well. 

Like all other investments, there are risks associated with staking. 

The crypto yield-bearing process staking facilitates can be quite volatile, and the underlying token prices could change quickly due to variable market conditions. 

Errors with validator nodes can also be possible, and some tokens may require lock-up periods.

Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone


Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.



OP holders might not be feeling very optimistic with the rollup’s token unlock schedule now in effect


Two lords are pushing for the government to ensure that the Bank of England could not implement “Britcoin” without legislative backing


This is the second fee switch proposal that failed to pass a community vote


This partnership comes as Nike released its first NFT collection, Our Force 1, this month


The weaknesses of large language models like ChatGPT are “too great to use reliably for security,” OpenZeppelin’s machine learning lead says


Giddy will now enable users to spend their yield on real-world goods and services