DeFi & Liquidity-Pool Yields on Ethereum
Ethereum hosts the largest DeFi ecosystem, with deep liquidity across AMMs, lending, and derivatives. LP yield generally comes from swap fees, interest spreads, and protocol incentives. Because blockspace is in high demand, transaction costs and slower finality than some high-throughput chains can make active management and compounding more expensive.
Common pool types include constant-product and concentrated-liquidity AMMs for volatile pairs, stable-swap pools for pegged or correlated assets, multi-asset index pools, and liquid-staking-token pairs. On the lending side, supply/borrow markets and collateralized debt positions generate interest-based returns; some derivative venues also share fees or funding with LPs.
What to watch: gas per action (adds/removes, rebalancing, compounding), price volatility and impermanent loss (especially in tight ranges), peg/oracle risk, utilization and liquidation dynamics in lending, MEV and price impact on rebalances, and the sustainability of any reward emissions. Incentives change over time, and headline rates can decay as programs wind down or liquidity grows.
How Solana compares: for cost-sensitive LPs, Solana's lower fees and fast finality make frequent rebalances and auto-compounding more practical, including for smaller positions. Ethereum still offers the broadest asset coverage and deep blue-chip liquidity, but higher fees can erode smaller LP returns and favor less frequent adjustments or Layer 2 usage.
Top protocols on Ethereum
Top Ethereum pools by TVL
| Pool | Protocol | Type | TVL | APY |
|---|---|---|---|---|
| STETH The STETH staking position on Lido offers an approximate APY of 2.4% with a total value locked of around $18.8 billion and no impermanent-loss risk. | Lido ↗ | Staking | $23.21B | 2.2% |
| USDC-CSUSDLStable | Fluid Dex ↗ | Lending | $16.44B | — |
| WBETH The WBETH staking position on Binance-staked-ETH offers a 2.4% APY with a total value locked of approximately $7.4 billion and no impermanent-loss risk. | Binance Staked Eth ↗ | Staking | $8.51B | 2.4% |
| WEETH The WEETH staking position on ether.fi-stake offers an APY of approximately 2.8% with a total value locked of around $3.8 billion and no impermanent-loss risk. | Ether.fi Stake ↗ | Staking | $4.88B | 2.3% |
| SUSDSStable The SUSDS staking position on Sky-Lending (Ethereum) offers a ~3.6% APY with no impermanent-loss risk and a total value locked of ~$6.1B. | Sky Lending ↗ | Staking | $4.67B | 3.5% |
| RETH The RETH staking position on Rocket Pool offers an APY of approximately 2.0% with a total value locked of around $2.9 billion and no impermanent loss risk. | Rocket Pool ↗ | Staking | $3.29B | 2.2% |
| WEETH The WEETH lending position on Aave V3 (Ethereum) has an APY of approximately 0.0%, a total value locked of around $2.3 billion, and no impermanent loss risk. | Aave V3 ↗ | Lending | $3.20B | 0.0% |
| WSTETH The WSTETH lending position on Aave V3 has an APY of approximately 0.0%, with a total value locked of around $1.6 billion and no impermanent loss risk. | Aave V3 ↗ | Lending | $2.90B | — |
| WSTETH The WSTETH lending position on Sparklend offers a 0.0% APY with a total value locked of approximately $2.0 billion and no impermanent loss risk. | Sparklend ↗ | Lending | $2.88B | — |
| USDCStable This position involves staking USDC on Maple Finance (Ethereum) with an APY of approximately 4.8%, a total value locked of around $3.3 billion, and no impermanent-loss risk. | Maple ↗ | Staking | $2.85B | 4.8% |
| WBTC The WBTC lending position on Aave V3 (Ethereum) has an APY of approximately 0.0%, a total value locked of around $2.3 billion, and no impermanent loss risk. | Aave V3 ↗ | Lending | $2.51B | 0.0% |
| CBBTC The CBBTC lending position on Aave V3 (Ethereum) has an APY of approximately 0.0%, with a total value locked of around $1.3 billion and no impermanent loss risk. | Aave V3 ↗ | Lending | $1.50B | 0.0% |
| SUSDEStable The SUSDE staking position on ethena-usde (Ethereum) offers a stablecoin investment with an APY of approximately 3.8% and a total value locked of around $1.8 billion, with no impermanent-loss risk. | Ethena Usde ↗ | Staking | $1.37B | 4.1% |
| USDYStable The USDY staking position on ondo-yield-assets (Ethereum) offers a stablecoin investment with an APY of approximately 3.5% and a total value locked of around $993.5M. | Ondo Yield Assets ↗ | Staking | $1.12B | 3.5% |
| RSETH The RSETH staking position on Kelp offers an APY of approximately 2.9% with a total value locked of around $1.4 billion and no impermanent-loss risk. | Kelp ↗ | Staking | $1.10B | 2.3% |
| USDTStable The USDT staking position on Maple (Ethereum) offers an APY of approximately 4.2% with a total value locked of around $915.1 million and no impermanent-loss risk. | Maple ↗ | Staking | $1.02B | 4.3% |
| WETH The WETH staking position on Sky-Lending (Ethereum) has an APY of approximately 0.0%, a total value locked of about $953.5M, and no impermanent loss risk. | Sky Lending ↗ | Staking | $920.21M | — |
| USDSStable The USDS staking position on the Centrifuge protocol offers a stablecoin yield of approximately 3.6% APY, with a total value locked of around $963.9M and no impermanent loss risk. | Centrifuge Protocol ↗ | Staking | $873.35M | 3.6% |
| BUIDLStable The BUIDL pool on blackrock-buidl (Ethereum) offers single-asset stablecoin staking with an APY of approximately 3.5% and a total value locked of around $912.7M. | Blackrock Buidl ↗ | Staking | $860.60M | 3.6% |
| LSETH The LSETH staking position on liquid-collective offers a 1.9% APY with a total value locked of approximately $747.2M and no impermanent loss risk. | Liquid Collective ↗ | Staking | $776.14M | 2.3% |
| WETH The WETH lending position on Aave V3 offers an APY of approximately 1.5% with a total value locked of around $587.4 million and no impermanent loss risk. | Aave V3 ↗ | Lending | $761.83M | 1.5% |
| CTDELTAWEETH The CTDELTAWEETH staking position on Concrete (Ethereum) has an APY of approximately 0.0%, a total value locked of about $645.4 million, and no impermanent loss risk. | Concrete ↗ | Staking | $743.62M | — |
| LBTC The LBTC staking position on Lombard offers an approximate 0.3% APY with a total value locked of around $749.9 million and no impermanent loss risk. | Lombard Lbtc ↗ | Staking | $694.99M | 0.3% |
| CBBTC The CBBTC lending position on Morpho-Blue (Ethereum) has an approximate APY of 0.0%, a total value locked of $499.5M, and no impermanent-loss risk. | Morpho Blue ↗ | Lending | $676.48M | — |
| WETH The WETH staking position on Sky-Lending (Ethereum) has an APY of approximately 0.0%, a total value locked of around $523.7 million, and no impermanent loss risk. | Sky Lending ↗ | Staking | $653.97M | — |
| USTBStable The USTB staking position on superstate-ustb (Ethereum) offers a 3.3% APY with a total value locked of approximately $798.7 million and no impermanent loss risk. | Invesco Ustb ↗ | Staking | $632.26M | 3.4% |
| SKY | Sky Lending ↗ | Staking | $621.90M | 12.3% |
| METH The METH staking position on the meth-protocol offers an approximate APY of 2.2% with a total value locked of around $479.6 million and no impermanent loss risk. | Meth Protocol ↗ | Staking | $573.60M | 1.5% |
| USDSStable The USDS lending position on Sparklend (Ethereum) offers an APY of approximately 4.0% with a total value locked of around $841.7M and no impermanent loss risk. | Sparklend ↗ | Lending | $546.62M | 3.8% |
| BUSD0Stable The BUSD0 staking position on usual-usd0 (Ethereum) offers an APY of approximately 3.6% with a total value locked of around $506 million and no impermanent loss risk. | Usual Usd0 ↗ | Staking | $505.02M | 3.2% |
| CBETH The CBETH staking position on Coinbase offers a single-asset yield with an APY of approximately 2.8%, a total value locked of around $262.4M, and no impermanent loss risk. | Coinbase Wrapped Staked Eth ↗ | Staking | $466.08M | 2.4% |
| PRIME | Hastra ↗ | Staking | $435.45M | 6.3% |
| AUSDStable | Centrifuge Protocol ↗ | Staking | $387.20M | 5.2% |
| WBTC The WBTC lending position on Compound V3 has an APY of approximately 0.0%, a total value locked of around $346.9 million, and no impermanent-loss risk. | Compound V3 ↗ | Lending | $377.63M | — |
| USDCStable The USDC staking position on the Centrifuge protocol offers a 3.7% APY with a total value locked of approximately $172.7 million and no impermanent loss risk. | Centrifuge Protocol ↗ | Staking | $370.69M | 5.7% |
| USDTStable The USDT lending position on Spark-Savings (Ethereum) offers a stable APY of approximately 2.5% with no impermanent loss risk and a total value locked of around $1.4B. | Spark Savings ↗ | Lending | $362.10M | 3.0% |
| OSETH The OSETH staking position on StakeWise V2 offers a 2.4% APY with a total value locked of approximately $287.8 million and no impermanent loss risk. | Stakewise V3 ↗ | Staking | $360.57M | 2.4% |
| SENPYUSDMAINStable The SENPYUSDMAIN lending position on Morpho-Blue (Ethereum) offers an APY of approximately 5.6% with a total value locked of around $261.4M and no impermanent loss risk. | Morpho Blue ↗ | Lending | $357.48M | 5.2% |
| WSTETH The WSTETH lending position on morpho-blue has an approximate APY of 0.0%, a total value locked of $679.1M, and no impermanent loss risk. | Morpho Blue ↗ | Lending | $346.88M | — |
| SENRLUSDV2Stable The SENRLUSDV2 lending position on Morpho-Blue (Ethereum) offers a stablecoin yield with an APY of approximately 5.0% and a total value locked of around $203.5M. | Morpho Blue ↗ | Lending | $319.59M | 6.3% |
| SUSDEStable The SUSDE lending position on Aave V3 (Ethereum) offers a stablecoin yield of approximately 2.4% APY with a total value locked of around $238.4 million and no impermanent loss risk. | Aave V3 ↗ | Lending | $317.20M | 1.5% |
| USDSStable The USDS lending position on Sparklend (Ethereum) offers a stablecoin yield of approximately 2.2% APY with a total value locked of around $169.5M and no impermanent loss risk. | Sparklend ↗ | Lending | $315.74M | 2.0% |
| LIQUIDETH | Ether.fi Liquid ↗ | Staking | $313.26M | 2.8% |
| USDEStable | Aave V3 ↗ | Lending | $310.96M | 2.6% |
| CBBTC | Sparklend ↗ | Lending | $310.12M | 0.0% |
| USDGStable | Maple ↗ | Staking | $306.42M | 5.0% |
| WLFI The WLFI staking position on Dolomite (Ethereum) has an APY of approximately 0.0%, a total value locked of around $298.5M, and no impermanent loss risk. | Dolomite ↗ | Staking | $296.45M | — |
| OSETH The OSETH lending position on Aave V3 has an APY of approximately 0.0% with a total value locked of around $225 million and no impermanent-loss risk. | Aave V3 ↗ | Lending | $283.71M | — |
| SENPYUSDStable The SENPYUSD lending position on Morpho-Blue (Ethereum) offers a stablecoin yield of approximately 3.9% with a total value locked of around $261.4M and no impermanent-loss risk. | Morpho Blue ↗ | Lending | $261.38M | 3.9% |
| USDCStable The USDC lending position on spark-savings (Ethereum) offers a 3.6% APY with a total value locked of approximately $403.2 million and no impermanent loss risk. | Spark Savings ↗ | Lending | $257.70M | 3.5% |
Earning on Ethereum? Compare with Solana.
On Solana, fees are a fraction of a cent — so yields compound instead of leaking to gas. WealthVille auto-compounds AI-ranked pools in non-custodial vaults.
Frequently asked questions
What are the main ways LPs earn yield on Ethereum?
Primarily through swap fees in AMMs, interest from lending markets, and protocol incentives. Some derivative venues share fees or funding with liquidity providers or market makers. Net returns depend on pool design, trading volume, and ongoing rewards, minus gas and any losses from price movement.
How do gas fees affect LP performance on Ethereum?
Gas affects entry/exit, rebalancing, and compounding. Higher costs can make frequent adjustments uneconomical, especially for smaller positions or narrow ranges. Many LPs batch actions, time transactions when network demand is lower, use vaults that auto-compound on a schedule, or consider Layer 2s to reduce costs—each with its own liquidity and bridge trade-offs.
What risks should I consider before providing liquidity?
Impermanent loss and range risk; smart-contract and admin-key risk; oracle and peg risk for stables and wrapped assets; liquidation and utilization risk in lending; MEV and adverse price impact on rebalances; and changing incentives or governance parameters over time.
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