DEFI YIELD HAS EVOLVED

Summary from the TLDR Crypto newsletter

DeFi yield protocols have evolved from 2020's degen farming to institutional-grade structured income, led by Aave v4's $40B cross-chain liquidity layer with dynamic risk pricing and Morpho's $11B efficiency layer that supercharges Aave and Compound rates. Pendle dominates yield tokenization at $6B TVL with its new Boros product packaging perpetual funding rates into tradable assets, while Solstice builds Solana's institutional yield infrastructure at $270M TVL, offering fixed, variable, and boosted delta-neutral returns. Emerging players include Katana's yield-first L2 delivering 8-41% APYs on $249M TVL and Turtle's campaign-driven router reaching 40.8% APY in its Yearn USD vault across $600M in deposits.