Comparing DeFi Protocols

Learn how to evaluate and compare Bitcoin DeFi protocols on Stacks to find the best yields and risk profiles

Overview

Staxiq aggregates data from all major DeFi protocols on Stacks, allowing you to compare APYs, TVL, risk levels, and features in one place. This guide teaches you how to effectively compare protocols to make informed decisions.

Protocol Dashboard

The protocol comparison dashboard displays:

Real-time APY

Current annual percentage yields from DeFi Llama

TVL (Total Value Locked)

Total assets secured in each protocol

Risk Rating

Low, Medium, or High risk classification

Asset Support

Which assets each protocol accepts (STX, sBTC, etc.)

Available Protocols

Staxiq tracks these major Stacks DeFi protocols:

export const PROTOCOLS = [
  {
    id: 'zest',
    name: 'Zest Protocol',
    type: 'Lending',
    apy: '8.2',
    tvl: '$48.2M',
    asset: 'sBTC',
    risk: 'Low',
    description: 'Lend and borrow Bitcoin-backed assets with transparent on-chain rates.',
    url: 'https://zestprotocol.com',
  },
  {
    id: 'alex',
    name: 'ALEX Lab',
    type: 'DEX',
    apy: '15.1',
    tvl: '$124.5M',
    asset: 'sBTC/STX',
    risk: 'Medium',
    description: 'The leading Bitcoin DeFi super app — swap, earn, and launch on Stacks.',
    url: 'https://alexlab.co',
  },
  {
    id: 'hermetica',
    name: 'Hermetica',
    type: 'Yield',
    apy: '18.7',
    tvl: '$9.8M',
    asset: 'sBTC',
    risk: 'High',
    description: 'Bitcoin-backed synthetic dollar yielding protocol built on Stacks.',
    url: 'https://hermetica.fi',
  },
  // ... more protocols
];

Filtering Protocols

By Protocol Type

Filter protocols by category:

export const FILTER_TYPES = ['All', 'Lending', 'DEX', 'Yield', 'Stacking'];

<div className="flex gap-1.5">
  {FILTER_TYPES.map(type => (
    <button
      onClick={() => setFilter(type)}
      style={{
        background: filter === type
          ? 'linear-gradient(135deg, #F7931A, #e8820a)'
          : isDark ? '#141c2e' : '#f1f5ff',
        color: filter === type ? '#ffffff' : '#8899bb',
      }}
    >
      {type}
    </button>
  ))}
</div>

1. Click Protocol Type

   Click Lending, DEX, Yield, or Stacking to filter:

   protocols.filter(protocol => 
     filter === 'All' || protocol.type === filter
   )
   
2. View Filtered Results

   Only protocols matching the selected type will display.

3. Reset with 'All'

   Click All to show all protocols again.

Protocol Type Definitions

Lending

Protocols: Zest, Granite

Lend your Bitcoin/STX to earn interest, or borrow against collateral

DEX

Protocols: ALEX, Bitflow, Velar

Decentralized exchanges for swapping and providing liquidity

Yield

Protocols: Hermetica

Yield farming and synthetic asset protocols with higher returns

Stacking

Protocols: StackingDAO

Liquid stacking solutions to earn Bitcoin while maintaining liquidity

Understanding Protocol Cards

Each protocol card displays key metrics:

<div className="bg-[#0a0e1a]/90 border rounded-xl p-3">
  {/* Logo and Name */}
  <div className="flex items-center">
    <img src={protocol.logo} className="w-5 h-5" />
    <h3 className="font-bold">{protocol.name}</h3>
    <span className="risk-badge">{protocol.risk}</span>
  </div>
  
  {/* APY Display */}
  <div className="flex items-end gap-1.5">
    <span className="text-2xl font-black text-orange-500">
      {protocol.apyDisplay}
    </span>
    <div className="trend-indicator">↑</div>
  </div>
  
  {/* Asset and TVL */}
  <div className="flex justify-between">
    <div>
      <span className="text-[#4a5a7a]">Asset</span>
      <span className="font-bold">{protocol.asset}</span>
    </div>
    <div>
      <span className="text-[#4a5a7a]">TVL</span>
      <span className="font-bold font-mono">{protocol.tvl}</span>
    </div>
  </div>
  
  {/* Description */}
  <p className="text-xs text-[#8899bb]">{protocol.description}</p>
  
  {/* CTA Button */}
  <a href={protocol.url} target="_blank">
    View Strategy
  </a>
</div>

Key Metrics Explained

APY (Annual Percentage Yield)

What it means: The annualized return you can expect from depositing assets.

// APY is fetched from DeFi Llama and updated regularly
const { protocols } = useProtocolData();

useEffect(() => {
  async function load() {
    const data = await fetchAllProtocolData();
    setProtocols(data);
  }
  load();
  // Refresh every 5 minutes
  const interval = setInterval(load, 5 * 60 * 1000);
}, []);

How to interpret:

• 7-10% APY: Conservative, stable returns (Lending protocols)
• 10-15% APY: Moderate risk/reward (DEX liquidity pools)
• 15-25%+ APY: Higher risk, higher potential returns (Yield protocols)

APY rates are variable and change based on protocol utilization and market conditions. Always check the protocol’s website for current rates.

TVL (Total Value Locked)

What it means: The total amount of assets currently deposited in the protocol.

Why it matters:

• Higher TVL = More user trust, better liquidity, lower slippage
• Lower TVL = Potentially higher risk, but sometimes better opportunities

// Example TVL comparison
const protocols = [
  { name: 'ALEX Lab', tvl: '$124.5M' },      // Largest, most established
  { name: 'StackingDAO', tvl: '$89.3M' },    // Large, trusted
  { name: 'Zest Protocol', tvl: '$48.2M' },  // Medium-sized
  { name: 'Hermetica', tvl: '$9.8M' },       // Smaller, newer
];

A protocol with $50M+ TVL is generally considered established and battle-tested on Stacks.

Risk Rating

Protocols are categorized into three risk levels:

export const RISK_STYLES = {
  Low: 'text-green-500',
  Medium: 'text-yellow-500',
  High: 'text-red-500',
};

Low Risk (Green)

Characteristics:

• Over-collateralized lending
• Established protocols with long track records
• Simple, audited smart contracts
• Conservative APY (7-10%)

Examples: Zest Protocol, StackingDAO, Granite

Medium Risk (Yellow)

Characteristics:

• DEX liquidity provision (impermanent loss risk)
• Moderate complexity
• Proven but evolving protocols
• Balanced APY (10-15%)

Examples: ALEX Lab, Bitflow, Velar

High Risk (Red)

Characteristics:

• Complex strategies (synthetic assets, leverage)
• Newer protocols or experimental features
• Multiple smart contract interactions
• High APY (15-25%+)

Examples: Hermetica

High risk doesn’t mean “bad”—it means you need to understand the protocol deeply before depositing significant funds.

Comparing Protocols: Step-by-Step

1. Identify Your Goal

   What are you trying to achieve?

   • Stable yield: Focus on Low risk, Lending protocols
   • Maximum APY: Consider Medium/High risk, Yield protocols
   • Liquidity provision: Look at DEX protocols
   • Liquid stacking: Check Stacking protocols
2. Filter by Type

   Use the filter buttons to narrow down protocols:

   setFilter('Lending');  // Shows only lending protocols
   setFilter('DEX');      // Shows only DEX protocols
   
3. Compare APY vs. Risk

   Look at the APY-to-risk ratio:

   // Good risk-adjusted returns:
   { name: 'Zest', apy: '8.2%', risk: 'Low', ratio: 'Excellent' }
   { name: 'ALEX', apy: '15.1%', risk: 'Medium', ratio: 'Good' }
   
   // Higher APY, higher risk:
   { name: 'Hermetica', apy: '18.7%', risk: 'High', ratio: 'Aggressive' }
   
4. Check TVL for Security

   Prioritize protocols with higher TVL for better security:

   // More battle-tested:
   protocols.filter(p => parseFloat(p.tvl) > 50_000_000)
   
5. Review Asset Compatibility

   Make sure the protocol accepts your assets:

   • STX holders: StackingDAO, ALEX (STX pairs)
   • sBTC holders: Zest, Hermetica, ALEX (sBTC pairs)
   • Both: ALEX, Bitflow (LP pairs)
6. Click 'View Strategy'

   Visit the protocol’s website to learn more and execute:

   <a
     href={protocol.url}
     target="_blank"
     rel="noopener noreferrer"
   >
     View Strategy
   </a>
   

Protocol-Specific Insights

Zest Protocol (Lending)

{
  apy: '8.2%',
  tvl: '$48.2M',
  asset: 'sBTC',
  risk: 'Low'
}

Best for: Conservative sBTC holders wanting stable yield

How it works: Lend your sBTC to borrowers, earn interest from loan repayments

Considerations: Over-collateralized loans minimize risk but cap APY

ALEX Lab (DEX)

{
  apy: '15.1%',
  tvl: '$124.5M',
  asset: 'sBTC/STX',
  risk: 'Medium'
}

Best for: Users wanting to provide liquidity and earn trading fees

How it works: Deposit paired assets (e.g., sBTC + STX) into liquidity pools

Considerations: Impermanent loss risk if token prices diverge significantly

StackingDAO (Stacking)

{
  apy: '9.5%',
  tvl: '$89.3M',
  asset: 'STX',
  risk: 'Low'
}

Best for: STX holders wanting to earn Bitcoin while keeping liquidity

How it works: Stack your STX to earn BTC rewards, receive liquid stSTX tokens

Considerations: stSTX may trade at a slight discount/premium to STX

Hermetica (Yield)

{
  apy: '18.7%',
  tvl: '$9.8M',
  asset: 'sBTC',
  risk: 'High'
}

Best for: Risk-tolerant users seeking maximum yield

How it works: Deposit sBTC to mint USDh (synthetic dollar), earn yield on both

Considerations: Complex mechanism, newer protocol, smart contract risk

Live Data Updates

Protocol data is fetched from DeFi Llama:

export function useProtocolData() {
  const [protocols, setProtocols] = useState(PROTOCOL_META);
  const [loading, setLoading] = useState(true);
  
  useEffect(() => {
    async function load() {
      try {
        const data = await fetchAllProtocolData();
        setProtocols(data);
        setLastUpdated(new Date());
      } catch (err) {
        setError(err.message);
      }
    }
    
    load();
    
    // Refresh every 5 minutes
    const interval = setInterval(load, 5 * 60 * 1000);
    return () => clearInterval(interval);
  }, []);
  
  return { protocols, loading, error, lastUpdated };
}

Data refreshes every 5 minutes automatically. You’ll always see near real-time APY and TVL figures.

Making Your Decision

Decision Matrix

Use this framework to choose:

Your Priority	Recommended Protocols	Why
Safety First	Zest, StackingDAO, Granite	Low risk, audited, proven track records
Balanced Returns	ALEX, Bitflow	Medium risk/reward, liquid markets
Maximum Yield	Hermetica	High APY, accept higher risk
Keep Liquidity	StackingDAO	Earn yield + maintain liquid tokens
Diversification	Mix of 2-3 protocols	Spread risk across categories

Portfolio Allocation Examples

Conservative Portfolio (HODLer):

{
  'Zest Protocol': '60%',      // Lending, 8.2% APY
  'StackingDAO': '30%',        // Stacking, 9.5% APY
  'Granite': '10%',            // Borrowing reserve
  expectedAPY: '8.5%',
  riskLevel: 'Low'
}

Balanced Portfolio (Builder):

{
  'ALEX Lab': '40%',           // DEX, 15.1% APY
  'Zest Protocol': '30%',      // Lending, 8.2% APY
  'Bitflow': '20%',            // DEX, 12.4% APY
  'StackingDAO': '10%',        // Stacking, 9.5% APY
  expectedAPY: '12.3%',
  riskLevel: 'Medium'
}

Aggressive Portfolio (Degen):

{
  'Hermetica': '50%',          // Yield, 18.7% APY
  'ALEX Lab': '30%',           // DEX, 15.1% APY
  'Velar': '20%',              // DEX, 11.3% APY
  expectedAPY: '16.2%',
  riskLevel: 'High'
}

Troubleshooting

Protocol Data Not Loading

If protocol cards show loading skeletons indefinitely:

{loading && (
  <div className="animate-pulse">
    <div className="bg-[#141c2e] h-24"></div>
  </div>
)}

Solutions:

1. Check your internet connection
2. Verify DeFi Llama API is accessible
3. Wait a few seconds for the 5-minute refresh cycle
4. Refresh the page manually

No Protocols Match Filter

{protocols.filter(p => filter === 'All' || p.type === filter).length === 0 && (
  <div className="col-span-full text-center">
    <p>No protocols found matching this filter.</p>
  </div>
)}

This means no protocols exist in that category—try a different filter.

APY Seems Outdated

If APY rates seem stale:

• Check the lastUpdated timestamp
• Wait for the next 5-minute refresh
• Visit the protocol’s website directly for real-time rates

Best Practices

Do Your Own Research

Always visit protocol websites and read documentation before depositing

Start Small

Test protocols with small amounts before committing large sums

Diversify

Spread funds across multiple protocols to reduce risk

Monitor Regularly

Check your positions weekly—DeFi conditions change rapidly

Next Steps

After comparing protocols:

• Get AI-powered recommendations tailored to your portfolio
• Understand protocol risks in detail
• Execute your strategy by visiting protocol websites

Related Resources

• API Reference: Protocol Data
• API Reference: Protocols Hook
• Using the AI Copilot
• Understanding Risk Profiles