DeFi Yield
Stablecoin lending across Aave, Compound, Morpho, and other non-custodial protocols.
Frequently asked questions
Tap a question to expand.
What is DeFi yield on stablecoins?
DeFi yield is the interest earned by lending stablecoins like USDC, USDT, or DAI to on-chain borrowers, or by providing liquidity to decentralized exchanges. All activity is non-custodial — the protocol's smart contract holds the funds, not a company.
How does Aave or Compound lending APY work?
Lenders deposit USDC into a pool. Borrowers take over-collateralized loans against it and pay a variable interest rate that rises with utilization. As more of the pool is borrowed, APY for lenders climbs — and drops again when utilization eases.
What APY can I expect on USDC in DeFi today?
Base lending rates on blue-chip protocols (Aave, Compound, Morpho) typically sit in the 3–8% range on stablecoins. Rates spike higher during market stress when leverage demand surges, and compress in calm markets.
What are the risks of DeFi yield?
Four main buckets: smart-contract risk (bugs or exploits), stablecoin depeg risk (the coin loses its $1 peg), protocol insolvency (bad debt exceeds reserves), and variable-rate risk (APY can collapse overnight). Apyee's risk grading weighs TVL, audits, operating history, and hack record.
How does Apyee pick which DeFi pools to list?
Every pool gets an A/B/C grade based on TVL size, audit coverage, months of live operation, and hack history. Grade C pools are excluded from the dashboard by default so new users never see a high-risk pool treated the same as Aave.
Is DeFi yield better than RWA yield?
Higher ceiling, higher variance. DeFi can outperform RWA in hot markets (7–10%+) but carries on-chain risk RWA does not. A common split is a stable RWA floor plus a DeFi tilt sized to your risk tolerance — which is what Apyee's smart allocation builds.