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DeFi investors reap profits despite prevailing crypto winter, study shows

DeFi investors reap profits despite prevailing crypto winter, study shows

The decentralized finance (DeFi) sector is recording positive returns for investors despite the prevailing crypto winter that has plunged products in the industry into losses. 

The returns are also highlighting the growing maturity in the DeFi space. In particular, four selected yield aggregators recorded returns of 2.87% on average between January and July 2022, according to a new report compiled by Bolide Finance on October 4.

Over the period, Acryptos recorded the highest returns at 6.4% on average, with profits peaking in January at 12.55%. Other yield aggregators with positive average returns between January and July include Autofam (1.2%), Beefy Finance (3.75%), and Killswitch (0.17%). 

DeFi yield aggregator returns chart. Source: Bolide Finance (

Elsewhere, under farming PancakeSwap outperformed other platforms with an average return of 265.12%. Interestingly, investors on the platform registered the highest returns in April at 318.08%. At the same time, Biswasp, the first Decentralized Exchange (DEX) on BNB Chain, had average returns of 28.94%, followed by Index at 25.7%, while Elipse ranked third at 25.4%. Nomiswap recorded returns of 0.77%. 

Dforce recorded the highest returns in lending, averaging 8.75% during the first seven months of the year. Overall, selected lending platforms, including CREAM Finance, Dforce, Liqee, Valas, and Venus, had profits of 3.05% on average. 

DeFi lending returns chart. Source: Bolide Finance (

Investors changing strategy amid crypto winter 

The profitability in the DeFi highlights the changing investment strategies in a bid to counter the extended cryptocurrency sector correction recorded in 2022. Notably, investors prefer to trade less and focus on earning stable yields in anticipation of another market rally. 

Furthermore, with the increased market volatility in 2022, investors are leveraging the benefits of yield farming aggregators that essentially automate the process of staking and collecting the generated rewards on behalf of users. 

At the same time, the gains highlight the maturing DeFi space that experienced unprecedented growth over the last year. 

Regulatory uncertainty 

However, the focus for investors will be on the sustainability of the profits, considering the prevailing uncertainty regarding the regulation of DeFi space. The need to regulate the sector has emerged with the possibility of DeFi being incorporated into the traditional banking space.

There has been a surge in the number of retail investors venturing into the decentralized financial sector, which has led some regulators to suggest that the industry may represent a risk to the overall stability of the financial system as a whole.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 


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