DeFi Yields Hit Historic Lows as Stablecoin Returns Drop to 5.8%

DeFi yields hit historic lows, with stablecoin APR averaging 5.8%, while top protocols like Level USD Pendle IY offer up to 12.4%.

Stablecoin yield trends vary, with Morpho, Aave, and MakerDAO offering lower returns, while Jupiter JLP and Usual USDO deliver over 10%.

Seamless DeFi shifts to Morpho, enhancing decentralized lending and introducing Leverage Tokens to optimize liquidity on Base.

Decentralized finance (DeFi) is experiencing historically low interest rates. According to Wu Blockchain, the average APR for stablecoins, weighted by TVL, is now 5.8%. This marks one of the lowest returns in DeFi history.

Among major DeFi protocols, Level USD Pendle IY offers the highest yield at 12.4%. Meanwhile, Aave V3 USDC deposits provide the lowest return at 3.4%. The landscape reflects shifting dynamics in stablecoin demand and liquidity flows.

Stablecoin Yields See Mixed Trends

Different DeFi protocols are witnessing fluctuating stablecoin yields. Besides Level USD, Usual USDO-USDO++ and RLP follow closely with 12.2% and 12.1%, respectively. Jupiter JLP delivers 10.9%, while sUSDE Pendle IY (May 2025) offers 8.2%.

Source: Karl

Furthermore, USDE Pendle IY (July 2025) yields 8.1%. Silo Money Market USDC provides 6.8%. Additionally, Morpho MEV Capital USDC and sUSDE record 6.4%. Other notable rates include USR at 6.0% and Bera Infrared USDe-Honey at 5.9%.

However, some platforms register lower yields. Morpho Gauntlet Core USDC stands at 5.1%. Morpho Spark DAI Vault and Kamino Money Market USDC return 5.0% and 4.9%, respectively. MakerDAO sDAI offers 4.7%, while Compound V3 USDC yields 4.5%. Fluid USDC and Aave V3 USDC provide 4.2% and 4.1%.

Seamless DeFi Goes Fully Platformless

DeFi lending protocol Seamless is migrating its infrastructure to Morpho in another major development. Morpho currently manages over $500 million in liquidity on Base and $2.4 billion on Ethereum. The transition, approved by the Seamless DAO, transforms Seamless into a "platformless" DeFi venue. Consequently, it enables greater efficiency and decentralized lending.

Seamless co-founder Wes Frederickson emphasized the shift’s impact. He stated that leveraging Morpho’s liquidity will drive innovation. The platform will introduce Leverage Tokens, tapping into Base’s liquidity sources.

Morpho Labs CEO Paul Frambot praised Seamless’s vision. He highlighted that Morpho’s permissionless infrastructure supports Seamless’s growth. The platform now serves over 200,000 wallets with $70 million in TVL.

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