DeFi Pulse: Top 3 Yield Farms Outperforming the Market This Week – ROI, Risks & Liquidity Trends
By CapitalKeeper | Crypto Capital | Crypto Market | Market Moves That Matter
DeFi Pulse: Top 3 Yield Farms Outperforming the Market This Week (13.08.2025)
Intro – Why Yield Farming is Back in Focus This Week
In the past month, the DeFi space has seen a noticeable uptick in yield farming activity. While some believed the golden era of yield farming peaked in 2021, the current market cycle suggests otherwise. A mix of higher on-chain liquidity, more sophisticated risk management tools, and innovative incentive structures is drawing both retail and institutional participants back into farming protocols.
With Bitcoin holding strong above $120,000 and Ethereum maintaining momentum around $6,300, stablecoin inflows into DeFi platforms have surged, signaling renewed investor confidence. This week, three yield farms significantly outperformed market averages, delivering APYs far above the DeFi Pulse index benchmark.
Methodology – How We Picked the Top 3 Yield Farms
To maintain transparency, our selection process involved:
- APY Performance – Measured over the past 7 days.
- Platform Risk Score – Evaluating smart contract security, historical exploits, and governance transparency.
- Liquidity Health – Assessing TVL (Total Value Locked) growth, capital inflow/outflow patterns, and sustainability of rewards.
- Asset Pair Diversity – Ensuring representation from both high-risk/high-reward farms and stablecoin-focused farms.
Top 3 Yield Farms of the Week – Detailed Analysis
Farm #1 – Curve Finance (stETH-ETH Pool)
- ROI: 27.4% APY
- Risk Score: Low-Medium – Curve’s contracts have been extensively audited, but the stETH peg fluctuations still introduce volatility.
- Liquidity Health: TVL increased by 14% this week, crossing $6.2B. Lido’s staking demand and Ethereum’s staking rewards support sustainability.
- Why It Outperformed: The surge in ETH staking and increased staking derivative trading pushed demand for deep liquidity pools like Curve’s stETH-ETH.
Farm #2 – GMX (ETH-USDC Perp Vault)
- ROI: 35.9% APY
- Risk Score: Medium – Perpetual futures vaults carry leverage risk, but GMX’s insurance fund and transparent fee model mitigate some downside.
- Liquidity Health: $1.8B TVL, with steady inflows driven by active derivatives traders.
- Why It Outperformed: Fee revenue from volatile ETH price swings significantly boosted rewards distribution to liquidity providers.
Farm #3 – Radiant Capital (ARB-USDT Lending Pool)
- ROI: 42.1% APY
- Risk Score: Medium-High – Cross-chain lending still faces bridge-related risks, but Radiant’s integration with LayerZero improves interoperability security.
- Liquidity Health: 19% TVL growth this week, showing strong lending demand for ARB and stablecoins.
- Why It Outperformed: Traders borrowed aggressively to participate in Arbitrum ecosystem token launches, raising lending interest rates.
ROI Comparison Table
| Farm | Weekly APY | Risk Score | TVL Change |
|---|---|---|---|
| Curve Finance (stETH-ETH) | 27.4% | Low-Medium | +14% |
| GMX (ETH-USDC) | 35.9% | Medium | +11% |
| Radiant Capital (ARB-USDT) | 42.1% | Medium-High | +19% |
Platform Risk Scores – Security & Stability
- Smart Contract Security: Curve and GMX have multiple third-party audits; Radiant is newer but has undergone LayerZero integration security checks.
- TVL Stability: All three saw positive inflows, but Radiant’s growth was the most aggressive, which could reverse if ARB token hype fades.
Liquidity Trends – Capital Flow This Week
The liquidity landscape in DeFi this week shows a clear rotation into high-yield, blue-chip protocols. Stablecoin inflows into lending pools have been strong, while speculative capital has moved toward ETH-based derivatives farms. The “risk-on” sentiment is apparent, as APYs above 30% are attracting capital despite moderate risk levels.
Expert Insights – When to Enter or Exit a Farm
Yield farmers are advised to enter positions early in a reward cycle before APYs normalize. For exit strategies, watch:
- Drop in TVL inflows
- Reduction in reward emissions
- Negative governance votes impacting rewards
Closing Thoughts – Balancing Risk & Reward
Yield farming in 2025 is no longer the wild west of DeFi’s early days. While high APYs remain attractive, risk-adjusted returns should be the priority. Blue-chip farms like Curve offer stability, while newer platforms like Radiant deliver aggressive yields but with higher exposure. Diversifying across both ensures a healthy balance.
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