DeFi Signal #002: Yield, Risk & the Onchain Perp Flippening

👋 After kicking things off last week, welcome to the first long-form edition of DeFi Signal – your weekly dose of sharp insights, real narratives, and actionable tools from the bleeding edge of onchain finance.

This week, we’re unpacking a structural shift that’s playing out across every serious DeFi user’s portfolio:

  • Why perpetual DEXs like Hyperliquid are rapidly closing the gap with CEXs in both volume and trader loyalty
  • How the Resupply exploit and a critical oracle failure at Asymmetry exposed real risks beneath the “stable” yield meta
  • And why many are now rotating toward perp DEX vaults – a cleaner, more transparent source of onchain yield

If you're farming with conviction – not just chasing points – this one’s for you.

Let’s get into it. 👇

🥊 The Onchain Perp Flippening Is Already Underway

Decentralized perpetual exchanges have come a long way. Back in 2022–2024, GMX was the first to truly break through – offering fully non-custodial trading that finally let experienced users avoid parking capital on centralized counterparties.

But GMX was just the beginning.

Fast forward to 2025, and we’re seeing a new generation of perp DEXs that don’t just match CEXs in performance – they outclass them in many ways:

Faster UIs. Deeper liquidity. Better alignment with users.

Leading this shift is Hyperliquid, which launched in late 2024 and is now eating into CEX volume at a pace we’ve never seen before – already claiming up to 18% of market share by some measures.

Powered by its standout airdrop and relentless performance improvements, Hyperliquid has pushed non-custodial trading into the mainstream. Some stats speak for themselves:

And in our view – this is just the beginning.

As worthwhile traders realize the value of self-custodial, permissionless trading, liquidity will continue to migrate away from centralized venues. CEXs, in turn, may start experiencing deeper wicks and thinner books as the more active flows move elsewhere.

🔦 The Rise of Competitors: Not Just Hyperliquid

It’s not just Hyperliquid leading the charge. The entire perp DEX landscape is accelerating – and becoming increasingly competitive.

You can track dozens of live and upcoming derivatives platforms via DefiLlama’s Derivatives Dashboard. Many of these protocols are launching with similar points systems to Hyperliquid – trying to bootstrap both traders and LPs via future airdrop incentives.

But whether they can actually compete with Hyperliquid remains to be seen.

One to watch right now is Lighter – a leaner, performance-focused exchange that currently offers:

  • High-yield opportunities via Lighter Liquidity Provider (LLP) vaults
  • An active points program that could turn into a meaningful airdrop
  • A UX and trade execution model that feels like a streamlined version of what Hyperliquid pioneered

Will it challenge the giant? Too early to call. But if you're yield-seeking and early-mover inclined, Lighter is worth watching and farming.

⚠️ From Exploits to Real Yield: Where Can You Actually Farm Safely?

Last week, we published our in-depth Airdrop Hunting Guide, which featured a full breakdown of the growing stablecoin farming meta – from Liquity V2 forks to point-driven dollar protocols offering real yield potential without volatile token exposure.

But this week, two of the promising protocols in that space – Asymmetry and Resupply – both ran into serious problems.

Asymmetry Finance, a Liquity V2 fork, suffered a critical oracle failure in its tBTC market – effectively halting the protocol and forcing the team to sunset its USDaf deployment.

Resupply suffered a far worse fate: a smart contract exploit in its wstUSR market resulted in $9.5M drained from the protocol.

Both incidents indirectly affected us at DeFiShills – but luckily not in a harmful way. We had an active farming position in Asymmetry and also held funds in Resupply’s insurance pool. In the case of Asymmetry, our tBTC position had just been redeemed, essentially forcing us to exit without loss. For Resupply, we weren’t exposed to the exploited market – but it was close.

The takeaway here isn’t just “we got lucky.”

It’s a reminder that even seemingly robust DeFi protocols can hide deep backend risk – especially those layering on top of other systems like crvUSD, oracle feeds, or untested token mechanics.

🧭 So Where Is the Safe Yield?

In our view, there’s really only one consistent source of yield in this market that doesn’t rely on wrapped layers, speculative emissions, or backend complexity:

Decentralized Perpetual DEX Vaults.

Whether it’s GMX, Hyperliquid, dYdX, Lighter, or Apex, these protocols offer real yield in the purest sense:

  • 📈 Yield comes from fees, liquidations, and counter-trading – not token inflation
  • 🛡️ There’s no rehypothecation or wrapped lending loops
  • 🧱 What you see is what you get: LPs provide liquidity, traders trade against it, and the protocol splits the fees

Hyperliquid’s model removes the need for LPs to run infrastructure or complex strategies. You simply deposit into the vault and start earning – it’s market-making without the overhead.

Compare that to stablecoin protocols stacking vaults on vaults on oracles – and you start to see why this model is winning mindshare.

💸 Yields We're Watching Right Now

Here are some of the perp DEX vaults we’re currently tracking – with real, sustainable returns:

In a market full of uncertainty, these vaults offer a way to sit back, earn yield, and stay liquid – without stacking invisible risks.

See You in the Next Cycle

That’s it for now. If the yield’s real, we’ll find it – and if it isn’t, we’ll say so.

Catch you in the next rotation.

– DeFiShills