defi-yield

# DeFi Yield

Yield farming opportunities, APY comparisons, strategy guidance, and risk metrics.

## APIs

### DefiLlama Yields (Free, no auth) — Primary source

Base: `https://yields.llama.fi`

**All yield pools** (10k+ pools across all DeFi):
```
web_fetch url="https://yields.llama.fi/pools"
```

Key response fields:
- `pool` — unique pool ID (use for chart endpoint)
- `project` — protocol name (e.g., `aave-v3`, `curve-dex`, `pendle`)
- `chain` — chain name
- `symbol` — pool token(s)
- `tvlUsd` — total value locked in USD
- `apy` — total APY (base + reward)
- `apyBase` — base yield (swap fees, interest)
- `apyReward` — incentive/farming rewards
- `apyMean30d` — 30-day average APY
- `stablecoin` — whether pool is stablecoin-only
- `ilRisk` — impermanent loss risk level
- `exposure` — `single` or `multi` asset

**Pool history** (daily APY over time):
```
web_fetch url="https://yields.llama.fi/chart/POOL_ID"
```

**Filtering strategies** (client-side):
- Stablecoin yields: filter `stablecoin: true`
- Low IL risk: filter `ilRisk: "no"` or `exposure: "single"`
- High TVL (safer): filter `tvlUsd > 10000000`
- Specific chain: filter `chain: "Ethereum"` or `chain: "Arbitrum"`

### Pendle API (Free, no auth)

Base: `https://api-v2.pendle.finance/core`

**Active markets** (fixed yield opportunities):
```
web_fetch url="https://api-v2.pendle.finance/core/v1/1/markets?order_by=name&skip=0&limit=20"
```

**Market details** (implied APY, maturity):
```
web_fetch url="https://api-v2.pendle.finance/core/v1/1/markets/MARKET_ADDRESS"
```

**Multi-chain markets**:
| Chain | Chain ID |
|-------|----------|
| Ethereum | 1 |
| Arbitrum | 42161 |
| BSC | 56 |
| Optimism | 10 |
| Mantle | 5000 |

Replace `1` in URL with chain ID.

Key Pendle concepts:
- **PT (Principal Token)** — buy at discount, redeem at par at maturity = fixed yield
- **YT (Yield Token)** — leveraged yield exposure until maturity
- **Implied APY** — the fixed rate from buying PT
- **Underlying APY** — current floating yield of the underlying asset

### Curve Finance API (Free, no auth)

**All pools with APY**:
```
web_fetch url="https://api.curve.fi/v1/getPools/all/ethereum"
```

**Volume and fees**:
```
web_fetch url="https://api.curve.fi/v1/getVolumes/ethereum"
```

Supported chains: `ethereum`, `arbitrum`, `optimism`, `base`, `polygon`, `avalanche`, `fantom`

### Convex Finance

**All pools (Curve + Convex rewards)**:
```
web_fetch url="https://www.convexfinance.com/api/curve-apys"
```

## Yield Strategy Guide

### Low Risk (Stablecoins)

1. **Lending** — Supply USDC/USDT to Aave/Compound (2-8% APY)
2. **Curve stable pools** — USDC/USDT/DAI pools (2-6% base + CRV rewards)
3. **Pendle PT** — Buy PT-aUSDC for fixed yield until maturity (4-10%)
4. **Morpho vaults** — Curated lending vaults (3-10% APY)

### Medium Risk (Blue-chip)

1. **LST yield** — Hold wstETH/rETH (3-5% staking APY)
2. **LST LP** — wstETH/ETH pools on Curve/Balancer (3-8%)
3. **Pendle PT-wstETH** — Fixed staking yield at premium (5-10%)
4. **Aave recursive** — Supply wstETH, borrow ETH, re-supply (leveraged staking)

### Higher Risk (Maximizing)

1. **Incentive farming** — New protocol token rewards (volatile, high APY)
2. **Pendle YT** — Leveraged yield exposure (can go to zero at maturity)
3. **Concentrated LP** — Uniswap V3 narrow range (high fees, high IL)
4. **Points farming** — EigenLayer, Ethena, new protocols (uncertain value)

## Risk Assessment Checklist

When recommending yields, always consider:

1. **Smart contract risk** — Is the protocol audited? How long has it been live?
2. **Impermanent loss** — Multi-asset pools lose value if prices diverge
3. **Reward sustainability** — High APY from token emissions decreases over time
4. **TVL trend** — Declining TVL can signal problems
5. **Depeg risk** — Stablecoin or LST depegging from underlying
6. **Maturity risk** (Pendle) — PT has fixed maturity; early exit may lose yield
7. **Protocol-specific** — Governance attacks, oracle failures, admin keys

## Usage Tips

- DefiLlama is the single best source for cross-protocol APY comparison
- `apyBase` is more sustainable than `apyReward` (rewards get diluted)
- `apyMean30d` is more reliable than current `apy` for forecasting
- For "where should I put my USDC", filter DefiLlama for stablecoin pools with TVL > $10M
- Always note the chain — same protocol can have very different yields on different chains
- When reporting yields, distinguish between base APY and reward APY
- Warn users about IL risk for volatile pair pools