Understanding DeFi Yields
Welcome to DeFiStar.io, your comprehensive dashboard for tracking the best yields on stablecoins in decentralised finance (DeFi). Whether you're new to crypto or an experienced DeFi user, this guide will help you understand what our platform displays and how you can benefit from it.
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged 1:1 to the US Dollar. Popular stablecoins include USDC, USDT, DAI, and others. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins aim to provide price stability, making them ideal for earning predictable yields without exposure to wild price swings.
DeFi yield opportunities come in two main categories, and it's critical to understand the distinction between them:
Platforms like Aave V3, Spark, and Maker DSR are lending protocols. When you deposit stablecoins here, you're supplying liquidity to a lending pool where borrowers can take loans by providing collateral. Your yield comes from the interest borrowers pay on their loans.
Key Advantage: Your stablecoins maintain their value (no impermanent loss), and you simply earn interest like a traditional savings account, but typically with much higher rates.
Platforms like Curve and Yearn use Automated Market Makers (AMMs) to facilitate trading between different tokens. These are fundamentally different from lending protocols.
In an AMM, you deposit token pairs (often two stablecoins like USDC-USDT or USDC-DAI) to facilitate trading on decentralised exchanges. Your yield comes from:
Key differences and additional risks:
| Feature | Lending Protocols (Aave, Spark, Maker) | AMM Pools (Curve, Yearn) |
|---|---|---|
| Deposit Type | Single stablecoin (USDC or USDT or DAI) | Token pairs (USDC + USDT) |
| Revenue Source | Interest from borrowers | Trading fees + rewards |
| Impermanent Loss | ❌ No risk | ⚠️ Yes, possible even with stablecoins |
| Withdrawal | ✅ Anytime (if liquidity available) | ✅ Usually anytime, but may face slippage |
| Complexity | Low - deposit and earn | Medium-High - requires understanding AMMs |
| Typical APY Range | 1% - 10% (stable) | 3% - 20%+ (volatile, reward-dependent) |
We currently track lending protocols because they offer:
We may expand to include Curve and Yearn pools in future updates as we build more comprehensive tracking tools.
Our platform processes data from major DeFi lending protocols across multiple blockchain networks through our proprietary calculation and risk engines, presenting you with:
Yields fluctuate based on supply and demand dynamics in real-time. When borrowing demand is high and available supply is low, rates increase to attract more lenders. Conversely, when there's abundant liquidity and less borrowing activity, rates decrease. Our dashboard updates these rates regularly so you can spot the best opportunities as they emerge.
While DeFi lending yields can be attractive, it's important to understand all risks involved:
We display safety scores to help you assess risk levels, but these are informational only. Always conduct your own thorough research before depositing funds. Remember: higher yields often come with higher risks.
To use the protocols displayed on our dashboard, you'll need:
Best Practice: Always start with a small test amount to familiarise yourself with the deposit and withdrawal process before committing larger sums.
The information on DeFiStar.io is provided for educational and informational purposes only and does not constitute financial, investment, legal, or tax advice.
No Affiliation: The lending pools and protocols shown on these pages are not connected with, endorsed by, or affiliated with DeFiStar.io. We process publicly available data and provide links to these third-party protocols. We have no control over these protocols and make no representations regarding their safety, legality, or suitability.
Investment Risks: DeFi investments carry significant risks, including but not limited to: complete loss of funds, smart contract vulnerabilities, protocol exploits, market volatility, regulatory changes, and stablecoin de-pegging. Past performance does not guarantee future results, and yields can drop to 0% without warning.
Your Responsibility: You are solely responsible for conducting your own research (DYOR), evaluating risks, and making investment decisions. Never invest more than you can afford to lose completely. Consult with qualified financial, legal, and tax professionals before making any investment decisions.
No Liability: DeFiStar.io and its operators shall not be held liable for any losses, damages, or consequences arising from the use of information provided on this platform or from interactions with any third-party protocols linked from this site.
Data Accuracy: While we strive for accuracy, data may be delayed, incorrect, or incomplete. Always verify information directly with the protocol before making decisions.