Coverage on Pendle, Vaults, f(x)Protocol and Stablejack

📝 Editor's Note:

Welcome to OurNetwork's latest. In this issue we're exploring the onchain latest in terms of where users are capturing yield.

Thank you to Tyler W, Alex, Kmets, and Yasmin for contributing.

– ON Editorial Team

Pendle | Vaults | f(x) Protocol | Stablejack

• The total market cap of stablecoins has grown throughout 2025, steadily climbing towards $300 billion. Despite this massive and growing pool of onchain liquidity, less than 10% of stablecoins are currently engaged in DeFi protocols to earn yield. At vaults.fyi, we expect the growth of stablecoins inside DeFi to accelerate. This year major exchanges and wallets have already made yield core to their products, with simplified DeFi-powered yield offerings on the backend.

• After onchain rates started 2025 at a significant premium over T-bills, this spread compressed, and even briefly turned negative. This trend signals a maturing market where the "crypto-native" risk premium has diminished, with onchain yields now stabilizing at ~100 bps above T-bills.

• While onchain rates have compressed, opportunities are still available for active farmers. Vaults.fyi data currently shows several major stablecoin vaults with $100M-plus TVL returning 7d average yields of over 10% APY.

• Pendle is an onchain market for yield: each deposit is split into a principal part that redeems at face value on a set date and a yield part that trades until that date. Because maturities are scheduled, TVL moves in cycles. In March 2025, a maturity wave redeemed about $1.7B of stablecoin principal and TVL fell from $4.7B to $3.0B before rotating into new terms. By late September 2025 TVL climbed above $12B and the large USDe September 2025 series matured, pushing TVL down to about $6.3B.

• Pendle earns from AMM trading fees and a 5% fee on yield paid to the yield token, and charges on due-but-unredeemed deposits, bringing revenue to ~$36M. Step-ups track maturity waves: as dated markets settle, fees crystallize and capital rolls into the next maturity.

• Pendle uses native-token incentives to seed and refresh liquidity at new maturities, paying LPs, traders, and contributors. Even as emissions trended lower in 2024–2025, usage kept rising with larger pools, more assets, cross-chain rollout, and growing volumes, showing real demand beyond subsidies.

• f(x) Protocol is a decentralized onchain trading platform that enables stress-free leverage on ETH and WBTC while delivering the highest organic & sustainable yield on stablecoins. The protocol offers up to 7x long or short exposure with minimum liquidation risk and funding costs. This leverage system has allowed for the TVL of f(x) Protocol to grow more than 10x over the course of 2025 from a low $35M to a high of over $400M.

• f(x) Protocol's stablecoin, fxUSD, has risen from $10M to over $110M in size. This makes fxUSD currently the 29th largest stablecoin on Ethereum mainnet.

• f(x) Protocol's yield-bearing version of its stablecoin fxUSD, fxSAVE, has maintained a yield of 12.71% over the past 90 days with a TVL of nearly $100 million ($98.7M).

• Stable Jack has grown into a multi-chain yield hub with $10.65M TVL. Avalanche dominates with $9.08M (85%), followed by GOAT $1.38M (13%) and Sonic $191K (2%). sAVAX drives 76% ($8.18M) of TVL, showing strong product-market fit in Avalanche’s staking ecosystem. The Leverage Market holds 64% of TVL, fueled mainly by sAVAX strategies on BENQI.

• The xAVAX leverage market (~$6.8M TVL) backed by aUSD (~$1.3M) keeps leverage in a stable 1.2x–1.8x band without liquidation risk. Trends double as sentiment signals launch spike >2.0x, long stability at 1.3x–1.6x, a mid-2025 rise to ~1.8x, then recent deleveraging showing users actively manage risk.

• Stable Jack’s Points Market ($1.18M TVL) makes airdrop farming tradable. artBTC vault ($893K) dominates, rsAVAX hits 4.7x leverage, and recent spikes >5x (Suzaku/Milk) with PT > YT holders highlight strong speculative demand.