Artemis Analytics: On-Chain Stablecoin Yields and DeFi Insights

Rising stablecoin APYs near 9% lure substantial capital into DeFi; layered primitives and cross-network spreads open new pathways for web3 finance and backend integrations.

Institutional DeFi Adoption and Composable Infrastructure

Institutions now allocate to DeFi not just for peak APYs but for transparent, automated capital deployment. Lending markets held over $50 billion TVL as of mid-2025, with USDC lending rates around 4–9%, exceeding short-term Treasuries. Protocols like Aave, Morpho, and Euler attract institutional capital with audited frameworks and modular primitives that enable tailored strategies.

Composability fuels innovation, the Artemis Analytics report reads. Teams layer vaults, tokenized real-world assets, and yield derivatives to boost returns while managing risk. Tokenized Treasuries on platforms such as Securitize and Ondo rose from $4 billion to over $7 billion TVL, integrating TradFi yields into DeFi. Yield-bearing stablecoins like Ethena’s sUSDe demonstrate structured approaches yielding 6–10% via delta-neutral trades.

Past cycles taught caution: unsustainable token incentives gave way to fee-driven, real-asset strategies. Crypto-native asset managers have grown from $1 billion to $4 billion on-chain capital since early 2025, deploying risk-aware frameworks in Morpho and other protocols. Permissionless liquidity and near-instant settlement remain core draws alongside improved risk tooling and compliance layers.

Fintech integrations are “invisible DeFi” at work. Wallets and exchanges embed yield engines to offer higher-interest products without exposing users directly to smart contracts. Examples include Coinbase’s USDC yield and PayPal’s PYUSD integrations, which channel idle balances into DeFi while platforms manage custody and risk. This backend model boosts engagement and widens reach.

User Behavior and Cross-Chain Yield Dynamics

Users now chase net returns across chains, not just headline APYs. Data shows capital flows toward networks offering higher yields after fees and gas costs. Ethereum yields near 4.8% vs Polygon at 5.6% drive opportunistic migrations via automated routing and intent-centric UX, Artemis’ report reads.

Beyond yield, users value stability and trust. Mature vaults on established platforms retain TVL during downturns, even if rates dip. UX improvements, such as gasless transactions and seamless interfaces, boost retention and capital stickiness. Protocol loyalty mirrors TradFi: convenience and reliability often outweigh marginal yield differences.

Analytics tools power decisions. Dashboards highlight top vaults by realized yield and risk metrics to guide decisions. They show TVL growth and protocol health in real time. Stablecoin flow analysis reveals liquidity patterns across networks, helping teams balance allocations. Cross-chain analytics compare APYs on different chains and flag instances where bridge usage spikes. They alert users to irregular transfers that may signal exploits.

Bridges often lack deep liquidity. Large transfers cause slippage and delays. Low liquidity makes it hard to exit positions quickly on the target chain. Smart contract bugs pose another risk. Bridges rely on code that can contain flaws like reentrancy or integer overflows. Hackers exploit these to drain funds from locks. Historical breaches, such as the Ronin bridge hack, stole hundreds of millions, exposing governance gaps and private-key vulnerabilities.

Why it matters: understanding user behavior and yield dispersion shapes protocol design and product offerings. As cross-chain aggregation services mature, savvier allocators can diversify returns and mitigate risks, prompting better interoperability and risk controls.

Monetizing DeFi Yields for Fintechs & Neobanks

Fintechs tap on-chain yields to enrich user products. They embed stablecoin yield modules to offer higher-interest accounts, driving deposits and engagement. Revenue models include interest-spread sharing, fees for premium access, and enhanced cross-selling via yield-backed offerings.

Neobanks in underbanked regions can pool customer deposits into DeFi strategies, delivering returns above local rates while maintaining buffers for volatility. Robust risk management (smart contract audits, liquidity reserves, diversified protocol exposure) underpins sustainable deployments.

APIs and SDKs simplify integration: platforms like M0 and Ondo enable custom stablecoins with built-in yield strategies. As regulations clarify, fintechs can merge on-chain yields with insured accounts, offering passive income without exposing users to technical complexities. This shifts yield from niche to mainstream utility.