When the Bitcoin pullback began and continued to occur I began to analyze it as a time to renter some coins I had sold out of. As the market has been still dealt with sell-side pressure I recently have been caught off guard by a issue with this. Stable coin yields are being destroyed. 

While Coinbase continues to say it has a 2.0% APY DeFi stable coin yields are a big yikes. I personally use Harvest Finance to deal with my DAI stable coin and the yield the previous few weeks has been easy double digits. A lot of this came from the 8-12% FARM token yield I would receive and now that has fallen to 2%.

I thought I was having a computer issue until I was able to wrap my head around the DAI pool balance was over X3 the size it normally was. The pool consistently was under $1 mil in total locked value and now it is up over $3 mil in locked value. This huge influx and decrease in FARM emissions just crushed the yield. 

Coinbase has also been distributing much less the last 3 days. While their APY is still at 2.0% it will be key to keep your eye on if this is maintained or if it soon also falls.

While Bitcoin seems to have found a new level of support in the upper $16,000 range to low $17,000 range. Alt coins have consistently been popping and crashing as people are hoping on and off this train. In general we are dealing with some extremely choppy times and so people are flooding to stable coins and then popping them into pools for better yield. This idea though is now starting to just crush yields on stable coins so those who have used them for very stable returns for a while now are getting hammered. 

I hope y’all enjoyed this article and are staying safe out there!