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DeFi & Yields

DeFi Lending Yields & Cross-Pool Comparison

· Updated daily

As of Jun 2026, the cross-pool average DeFi lending yield stands at 2.88%, classified as Compressed Yields. The highest-yielding pool is AAVE V3 · ETH · DAI at 3.44%, while the lowest is AAVE V3 · Arbitrum · USDC at 2.20% — a cross-pool spread of 1.24pp. This page tracks the base APY ("apy_base", excluding token incentives) across 5 major institutional stablecoin lending pools: Aave V3 on Ethereum (USDC, USDT, DAI), Compound V3 on Ethereum (USDC), and Aave V3 on Arbitrum (USDC). Comparing across pools reveals when one venue is offering a yield premium versus the rest of the market — useful for both yield-seekers and for reading market structure. A premium that holds across multiple pools is a real DeFi rate signal; one isolated to a single pool is usually a transient liquidity event. Data sourced from the DefiLlama Yields API, daily from Oct 2022.

Cross-Pool Average
2.88%
5 pools, base APY
Highest Pool
AAVE V3 · ETH · DAI
3.44%
Lowest Pool
AAVE V3 · Arbitrum · USDC
2.20%
Cross-Pool Spread
1.24pp
highest − lowest
Smoothing:

Per-Pool Yields Over Time

Base APY for each tracked pool. Default view is a 7-day moving average to remove single-day liquidity spikes; toggle to Raw to see the original noise, or 30D MA for structural trend. When the lines bunch together, the cross-pool market is well-arbitraged; when they fan out, idiosyncratic borrowing demand is pushing one venue above the rest.

Cross-Pool Average Yield vs Stablecoin Supply

Average base APY across all tracked pools (right axis, blue) overlaid with total stablecoin market cap (left axis, green). Fed regime bands annotate policy periods. When DeFi yields are structurally elevated (above ~5%), stablecoin supply tends to expand; when compressed (below ~3%), T-bills win and supply contracts. The 2022 hike cycle drove the average from ~8% to ~1.5%, coinciding with the supply contraction from $180B to $130B.

Current Yields — Bar Chart

Latest base APY for each pool, sorted high to low. Green bars indicate the highest-yielding pool; red the lowest. The visible spread shows how far cross-pool rates have diverged on the most recent observation.

How to Read These Charts
Avg > 8%
High Yield Regime

DeFi base yields are well above T-bill levels. Strong stablecoin deployment incentive — capital flows on-chain. Typically reflects Fed easing cycles or sustained crypto borrow demand. The 2021 cycle peaked here.

Avg 4–8%
Normal Yield Regime

Yields are competitive with T-bills. Stablecoin supply growth is supported but not aggressive. Cross-pool dispersion is typically narrow — most pools sit within 1–2 percentage points of the average. The 2024–2025 environment.

Avg 1.5–4%
Compressed Yields

DeFi yields below T-bill levels. Stablecoin deployment incentive is weakening. Capital tends to rotate to off-chain risk-free yield. The 2023 environment that drove the supply contraction.

Avg < 1.5%
Yield Collapse

Effectively no on-chain yield premium. Rare regime — typically reflects deep crypto market quiet (low borrow demand) or aggressive Fed tightening that drains the rate environment. Stablecoin supply contracts.

Methodology

Pools tracked: Aave V3 Ethereum USDC, USDT, DAI; Compound V3 Ethereum USDC; Aave V3 Arbitrum USDC. Five pools spanning the two largest institutional lending protocols, two networks (L1 + L2), and the three major stablecoins.

Source: DefiLlama Yields API daily snapshots. The yields API consolidates on-chain rate data across DeFi protocols with verified pool IDs and audited methodology. Stored in the local `defi_rates` TimescaleDB hypertable.

Field used: apy_base — the base interest paid by borrowers to lenders, excluding protocol-token reward incentives. Reward APY (e.g. AAVE, COMP token emissions) is tracked in the data but not used here, as reward yields can be mercenary capital signals rather than organic economic rates.

Smoothing: Per-pool APYs can spike intraday during liquidity events (sudden borrow demand pushing utilisation past 90%). Default view is a 7-day trailing moving average — long enough to remove single-event spikes, short enough to remain responsive to genuine regime shifts. Toggle to Raw to inspect spike days, or 30D MA for structural trend.

Cross-pool spread: Highest pool yield minus lowest pool yield on the latest observation. Persistent spread (above ~2 percentage points sustained) signals that one venue is offering a real premium — usually driven by chain-specific borrow demand or protocol-specific capital constraints.

Limitations: Aave and Compound USDT/DAI pools on Arbitrum are not currently tracked — adding them would require widening the pool set in `fetch/defi_rates.py`. Reward APY (which is meaningful for retail yield-seekers but noisy for economic analysis) is excluded by design.

Related Indicators
DeFi & Yields
DeFi Yield Spread (vs T-bill)
Companion page: the highest Aave USDC yield minus 3-month T-bill rate. Captures the on-chain vs off-chain yield competition that drives aggregate stablecoin deployment.
Macro Environment
SOFR & Short-Term Rates
The risk-free rate side of the comparison. When SOFR rises, DeFi yields must match or stablecoin supply rotates off-chain. The Fed funds path is the upstream driver of DeFi yield regimes.
Market Structure
Stablecoin Redemption Pressure
When DeFi yields collapse, redemptions accelerate. The 30-day net flow on the redemption-pressure page reflects the supply-side response to the yield regime tracked here.
Frequently Asked Questions
Why compare yields across multiple Aave and Compound pools?
A single pool yield (e.g. Aave USDC on Ethereum) is noisy because it depends heavily on that one pool's utilisation rate and on idiosyncratic borrowing demand at that moment. Comparing across pools — different stablecoins on Aave, different chains, different protocols — gives a structural view of where on-chain dollar yields sit broadly, and reveals when a particular venue is offering a yield premium that other pools are not. A premium that holds across multiple pools is a real DeFi spread signal; a premium isolated to one pool is usually just that pool's liquidity event.
Why include both Ethereum and Arbitrum?
Ethereum (L1) and Arbitrum (L2) are different rate environments. L2 lending pools are smaller, less institutionally anchored, and tend to be more volatile. Comparing Aave USDC on Ethereum vs Arbitrum shows whether the L2 yield premium that periodically appears is durable or transitory. As of 2025, the L2 stablecoin yield market is still maturing; the L1–L2 gap is one of the key spreads to watch.
Why include Compound V3 alongside Aave V3?
Compound V3 and Aave V3 are the two largest institutional lending protocols on Ethereum. They have different interest rate models, different liquidity, and slightly different risk profiles. Tracking their USDC yields side by side reveals when protocol-specific demand or supply imbalances are driving rate divergence. A persistent Aave premium over Compound, or vice versa, is informative about where institutional capital is flowing.
What does "highest pool" tell me?
It identifies which venue currently offers the most attractive on-chain dollar yield. This is useful for traders selecting where to deploy stablecoins, and as a market signal: the highest-yield pool is typically experiencing the strongest borrow demand at that moment. Sustained high yields in one pool usually attract supply that brings them back down to the cross-pool mean over days to weeks.
How does multi-pool yield relate to stablecoin supply growth?
When the cross-pool average is structurally elevated (above 5–6%), DeFi is competitive with T-bills, and stablecoin supply tends to expand. When the average is compressed (below 3%), T-bills win the yield comparison and stablecoin supply tends to contract. The 2022 hike cycle drove the average from ~8% to ~1.5%, coinciding with the $180B → $130B contraction in total stablecoin supply.
Why use apy_base rather than apy_base + apy_reward?
The base APY reflects native borrow-demand-driven yield from interest paid by borrowers. Reward APY can include protocol token incentives (Aave AAVE, Compound COMP) which are often mercenary capital incentives rather than organic yield signals. Base APY is the cleaner economic indicator. Reward APY is tracked in the underlying data and can be added back if a comparison page is built.