Read time: ≈ 13 min • Last updated: November 25 2025
I test-drove 7 DeFi passive plays for 90 days. Here are the 3 that still pay > 20 % APY in 2025 and how to copy them step-by-step—plus the 4 traps that ate my gas.
Everything is tested with ≤ $500, real wallets, real slippage. No seed-sale fairy tales.
Why I re-tested DeFi in 2025
In 2021 I lost 3 ETH in a Titan-like fork because I chased 500 % APY. This cycle I set new rules:
- Test ≤ $500 real money
- Net APY after gas & slippage > 15 %
- Protocol must be audited & > 1 year old
- Exit liquidity > $20 M
If a pool fails any bullet, I skip. Period.
Safety checklist (learned the hard way)
DefiSafety score > 80 % + Nexus Mutual cover available = green light. Anything under 70 % = instant skip.
I run Dune dashboard “pool liquidity vs my test size”. If withdraw > 2 % slip, game over.
Winner 1 – Convex FRAX pool 28 % APY
Assets: FRAX/USDC 50/50
Protocol: Curve → Convex
Net APY 90 d: 28.4 % (including CVX rewards)
Gas cost entry: $38
Exit gas: $41
Slippage: 0.08 %
Step-by-step (copy me)
- Buy FRAX & USDC 1:1 on Binance, withdraw to Ledger.
- Connect Ledger to Curve.fi → deposit into FRAXBP pool → receive LP tokens.
- Stake LP on Convex → toggle “auto” for CVX rewards.
- Harvest weekly, compound manually (gas €25–35).
Tip: compound only when reward > $80 or gas eats you alive.
Winner 2 – Beefy autocompound MATIC 24 %
Pool: stMATIC/MATIC on QuickSwap
Vault: Beefy autocompound
Net APY: 23.9 % (auto)
Gas: $0.18 per tx
Slippage: 0.05 %
Beefy auto-sells reward token → buys more LP → deposits. You sleep, it compounds.
Watch de-peg: if stMATIC trades > 2 % below MATIC, exit immediately.
Winner 3 – Aave ETH staking loop 21 %
Loop: Deposit ETH → borrow stETH → stake stETH → supply stETH → borrow more stETH (max 3×)
Net APY: 20.8 % after borrow cost
Risk: Liquidation at 82 % LTV
I keep LTV < 70 % and set Telegram bot alerts. One re-pay click saves liquidation.
4 traps I fell into (gas > rewards)
5 000 % APY lasted 4 days. Gas to enter/exit $120. Net loss $42.
Unknown L2 with < $5 M TVL. Exit liquidity dried up, slippage 8 %.
High APR paid in illiquid governance token. Price -90 % in 30 days.
I forgot to repay Aave loan while on holiday. ETH dropped 11 %, bot offline, liquidated 0.6 ETH.
EU MiCA tax note 2025
Yield is income at fair-market value when received. I export CSV weekly to Koinly and set aside 32 % in money-market fund so I never sell crypto to pay taxes.
Copy my Google-Sheet tracker
Open SheetAuto-imports on-chain data via DeFiLlama API. Green = compound, red = exit.
Frequently Asked Questions
Probably not forever. I revisit every quarter; if net APY drops < 12 % for 2 weeks, I exit.
Budget $100 for Ethereum plays, $5 for Polygon. Anything less and gas eats your profit.
Yes. Convex, Beefy, Aave, Curve all have multiple audits and bug bounties > $1 M.
On Polygon yes; on Ethereum wait until you have $500 or gas will murder you.
I am not a financial advisor. DeFi involves smart-contract risk and impermanent loss. Never invest more than you can lose.