When it comes to yields of investments, the 10-year US Treasury bill is usually seen as a trusted benchmark. The recent increase in its yield to 3.506% on Monday has made it a more attractive option compared to many yield-bearing opportunities in the DeFi sector.

Decentralized protocols such as Aave, Curve, Compound and other derivatives and providers in Ethereum like Lido, Rocket Pool and Frax Finance offer alternatives in yield farming and staking to investors. Yield farming is the process of earning rewards by providing liquidity to token pairs and trading pools, while staking refers to the process of locking tokens up to participate in the network security of a proof-of-stake blockchain.

Although the yields of these options are lower than the 10-year Treasury, they do offer enticing rates. For example, some of the platforms provide yields of up to 6.0%, 5.17% and 6.98% to investors who stake ETH on their platform. Frax Finance is particularly interesting as its VST/FRAX Pool offers a base APR of 6%, but its base APR could potentially reach as high as 20%. Abundant liquid staking options are also available with platforms like Cosmos and Solana.

However, investors should also note that yield farming and staking are not without risks. Yields of staking could be volatile, and the underlying price of tokens could change depending on market conditions. There is also the possibility of errors with validator nodes, and some tokens may require users to lock them up for a fixed period of time. As always, it is important to do your own research and carefully consider all possible risks before investing.



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