As markets heat up, stable farming is regaining its allure as an attractive alternative to traditional options like treasury bonds. With yields picking up, stablecoin pools offer the potential for strong returns, though they come with increased risk compared to traditional fixed-income investments. For those willing to navigate the complexities of DeFi, this can be a rewarding endeavor.

Personally, I look for pools with sufficient Total Value Locked (TVL) — a solid baseline for me is $5 million or more, for implicit security reasons and to not have the yield diluted too easily — and a risk premium that justifies the exposure (at least three times the unlevered Aave lending yield, which puts us around 13% APR). My strategy revolves around...