Weekly Recon: Equilibrium Found as Ethereum Stabilises
Put the kettle on, it's time for some serious alpha. We are in a 'wait and see' pattern across most major chains.
Market Overview: Dec 21 - Dec 28
This week marks a consolidation phase, characterised by Ethereum leading the pack with 279,262 million in tracked total value locked. Average yields climbed by +0.03%, reflecting stable equilibrium between supply and demand.
Total value locked across our index expanded by approximately +0.8% over the 7-day period. This movement aligns with the broader narrative of market consolidation and cautious positioning.
Alpha Intelligence: Automated Signals
- Matrix Gem: mwUSDC on Morpho (Base) is delivering 5.34% APY with a safety score of 85/100. This represents an optimal risk-adjusted opportunity in the current market.
- Forecast Warning: USDC on Aave V3 (Scroll) is showing elevated utilisation at 97.3%. High utilisation can signal increased borrowing demand but also potential liquidity constraints.
- Momentum Star: USDT on Venus (BNB Chain) is heating up, with current APY at 5.13%, up 0.76% from its 14-day average. Early-stage momentum detected.
Capital Flows & Liquidity Dynamics
The DeFi ecosystem processed significant liquidity movements this week. The market is in wait-and-see mode, with capital moving sideways between similar-risk pools rather than entering or exiting en masse.
It's also worth noting that the Money Flow engine picked up $213.0M in verified inflows this week, mostly directed towards Ethereum. Smart money is clearly making deliberate rotations.
Performance Spotlight: The Week's Alpha
In a crowded field, one pool stood out for consistent performance. The FDUSD market on Aave V3 (BNB Chain) delivered a robust average APY of 9.98% throughout the week.
For yield farmers seeking stability over degenerate spikes, this represents the "sweet spot" of current market conditions, high enough to beat inflation, but backed by a protocol with significant depth (>$1M TVL). Users employing our Balanced Strategy would have seen this asset heavily weighted in their allocation.
Moonitooki's Outlook
"The data doesn't lie, but it often whispers before it shouts."
This week's +0.03% yield delta is the signal to watch. We are in equilibrium. Consider optimising positions and wait for a breakout.
The key is spotting the signal before the crowd does.
Happy farming, and don't ape into anything without checking the safety score first.
Moonitooki's Hot Take
"Is it just me, or are gas fees quietly creeping up again? It might be time to double-check your approval limits."
Important Disclaimer
Not Financial Advice: The content provided in this "Weekly Pulse" blog is for informational purposes only. It does not constitute financial, investment, or trading advice. We analyse and discuss the DeFiStar.io index of filtered pools, not the entire market. Calculations for values displayed are based on DeFiStar.io's specific methodology from on-chain data. Results may vary if different inputs or calculation methods are used; always check current TVL and APY rates by visiting the link to the specific protocol pool's webpage. We provide no guarantees of accuracy or uptime.
Risk Warning: Decentralised Finance (DeFi) involves significant risks, including smart contract failure, permanent loss of funds, and market volatility. Past performance of any pool or protocol is not indicative of future results.
Professional Advice: You should always seek independent professional financial advice before making any investment decisions. Never invest money you cannot afford to lose.
Please review our full Terms of Service and Risk Radar methodology before interacting with any protocol mentioned.