Updated Quarterly | Next Update: Q2 2026 (July 2026)
If you’re looking for a fellow investor interested in DeFi liquidity pools, you’ve found the right person.
Here’s a problem I’ve discovered, though: Finding accurate data on liquidity pool performance can be challenging. Most platforms show you shiny APY numbers without mentioning impermanent loss or the pools that failed the previous month.
That’s why my team and I at Awesomely created this index. We track major liquidity pools across leading decentralized exchanges with real, verified metrics pulled straight from the blockchain.
No hype.
Just facts.
We publish comprehensive quarterly reports covering Q1, Q2, Q3, and Q4 performance data.
And if you need a refresher on liquidity pools before moving forward, here it is:
A DeFi liquidity pool is a collection of cryptocurrency tokens locked in a smart contract that enables trading on decentralized exchanges. When you deposit your tokens into a pool, you become a liquidity provider and earn fees from traders who use that pool to swap between different cryptocurrencies.
In exchange for providing this liquidity, you earn a percentage of trading fees, but you also face risks like impermanent loss, which occurs when the price ratio of your deposited tokens changes compared to when you deposited them.
Now…
What Changed Everything in Q1 2026
Total DeFi TVL (the total amount of money in DeFi protocols) hit $187 billion in March, up 34% from December 2025. Layer 2 networks (faster, cheaper versions of Ethereum) now control 43% of all DeFi money, with Coinbase’s Base Network alone capturing $28.7 billion. Ethereum’s main network lost $12.3 billion as people moved to networks with lower fees. The big shift was institutional adoption: tokenized real-world assets likeTtreasury bills tripled to $16.7 billion. Bitcoin and Ethereum started moving together more (0.87 correlation), which reduced impermanent loss for those pairs. The SEC’s regulatory framework from January 15, 2026 separated good protocols from bad ones: Compliant pools grew 22% while sketchy alternatives lost 67% of their money.
How We Track These Numbers
All data comes from blockchain sources like Dune Analytics and DefiLlama. When we say “actual APY,” we’re showing real returns over 30, 90, and 365 days, not what protocols advertise. Impermanent loss is measured against simply holding tokens in your wallet. TVL data updates from pools every 24 hours.
We track pools with significant TVL and market impact, plus smaller ones that failed (as warnings). Risk scores look at how long the protocol has existed, security audits, TVL stability, team reputation, and consistent performance. Scores go from 1–10, with 10 being the safest.
Each quarter, we publish a report analyzing the previous 3months. Comparing quarters helps spot real trends versus temporary changes. The Q2 2026 report (April–June) drops in July 2026.
Top 10 Liquidity Pools: Q1 2026 Rankings
Tier 1: Safest Pools ($500M+ TVL)
1. Curve stETH/ETH (Ethereum) — The Safest Option
Q1 actual APY of 4.3% with only 0.4% impermanent loss. This is what big investors look for: steady returns without much risk. TVL grew from $1.31 billion to $1.42 billion as pension funds and Treasury managers jumped in after January’s regulatory clarity.
The pool handled $8.3 billion in Q1 trading. February alone did $3.1 billion. Not exciting? Maybe. But serious money loves boring and safe.
- Q1 Actual APY: 4.3% (30d), 4.1% (90d), 3.8% (365d)
- Advertised APY: 4.5%
- Q1 Impermanent Loss: -0.4%
- TVL: $1.42B (Jan 1: $1.31B | Mar 31: $1.42B)
- Q1 Volume: $8.3B
- Risk Score: 9.2/10
- Pool Age: 38 months
2. Uniswap V4 ETH/USDC 0.05% (Ethereum) — The Upgraded Version
Uniswap V4’s new features made your money work 23% better than the old version. The 9.4% actual APY with only 1.8% impermanent loss proves the upgrade delivered real results. Daily volume averaged $287 million, creating $143,500 in daily fees for liquidity providers.
This pool proves good DeFi returns are possible without crazy risk. It’s about steady fee income from real trading activity, not gambling.
- Q1 Actual APY: 9.4% (30d), 9.1% (90d), 8.7% (365d)
- Advertised APY: 10.2%
- Q1 Impermanent Loss: -1.8%
- TVL: $523M (up from $498M)
- Q1 Volume: $25.8B
- Risk Score: 8.9/10
3. Curve 3pool USDC/USDT/DAI (Ethereum) — Stablecoins Still Deliver
This pool delivered 5.8% actual APY through Q1 with almost zero impermanent loss. The $12.4 billion in quarterly volume came from real traders needing to swap stablecoins.
This shows how DeFi has matured. Returns aren’t crazy like 2021, but steady returns from real use remain.
- Q1 Actual APY: 5.8% (30d), 5.6% (90d), 5.2% (365d)
- Advertised APY: 6.1%
- Q1 Impermanent Loss: -0.1%
- TVL: $891M (up 5.2%)
- Q1 Volume: $12.4B
- Risk Score: 9.1/10
Tier 2: Growth Pools ($100M-$500M TVL)
4. Aerodrome ETH/USDC (Base) – Base’s Breakout Star
The 24.7% actual APY comes from real growth on Base, not fake token rewards that disappear in 6 months. TVL jumped 55% from $394 million to $612 million as Base’s apps drove real trading.
March alone saw $7.2 billion in volume. When a major company like Coinbase puts serious resources behind infrastructure, good things happen. The 3.1% impermanent loss? Totally manageable for these returns.
- Q1 Actual APY: 24.7% (30d), 23.3% (90d)
- Advertised APY: 28.4%
- Q1 Impermanent Loss: -3.1%
- TVL: $612M (up 55%)
- Q1 Volume: $18.7B
- Risk Score: 7.8/10
5. Aerodrome USDC/EURC (Base) — The European Winner
The EU’s Markets in Crypto-Assets, or MiCA, regulations kicked off January 10, 2026, and this pool became the immediate winner. European money flooded in as regulated companies could finally use crypto rails for payments. TVL increased 56% from $182 million to $284 million.
The 18.3% actual APY with only 0.2% impermanent loss? One of the best risk-adjusted opportunities available right now. Daily volume from European traders averaged $52 million through Q1.
- Q1 Actual APY: 18.3% (30d), 17.8% (90d)
- Advertised APY: 19.7%
- Q1 Impermanent Loss: -0.2%
- TVL: $284M (up 56%)
- Q1 Volume: $4.7B
- Risk Score: 8.1/10
6. GMX V3 ETH/USDC (Arbitrum) — Real Trading, Real Fees
GMX handled $87 billion in trading volume during Q1, creating sustainable 21.7% actual APY from real trading fees, not token giveaways. Big trading firms like Jane Street and Jump Trading joined in February, driving $34 billion in volume that month alone.
TVL grew 20% to $142 million as smart investors recognized this works long term.
- Q1 Actual APY: 21.7% (30d), 20.9% (90d), 19.4% (365d)
- Advertised APY: 24.1%
- Q1 Impermanent Loss: -4.9%
- TVL: $142M (up 20%)
- Q1 Perpetual Volume: $87B
- Risk Score: 7.9/10
7. Uniswap V4 WBTC/ETH 0.3% (Ethereum) — Correlation Changed the Game
Bitcoin and Ethereum moving together (0.87 correlation) completely changed this pool’s math. Impermanent loss dropped 38% from the last quarter to just 6.8% for Q1 while delivering 17.2% actual APY.
Daily volume averaged $94 million. When both assets move together, you don’t lose money from price differences. This pool became way safer than it was a year ago.
- Q1 Actual APY: 17.2% (30d), 16.8% (90d), 14.3% (365d)
- Advertised APY: 18.9%
- Q1 Impermanent Loss: -6.8%
- TVL: $167M (stable)
- Q1 Volume: $8.5B
- Risk Score: 7.6/10
Tier 3: Higher-Risk Pools ($50M–$100M TVL)
8. Camelot V3 ETH/ARB (Arbitrum) — High Risk Territory
The 28.3% actual APY came with 14.7% impermanent loss as ARB’s price jumped around. ARB shot up 67% in 2 weeks in March, creating big losses for people who didn’t watch their positions closely.
TVL grew from $67 million to $82 million as people chasing high returns piled in. This is only for experienced investors who check their positions daily.
- Q1 Actual APY: 28.3% (30d), 26.7% (90d), 22.1% (365d)
- Advertised APY: 34.8%
- Q1 Impermanent Loss: -14.7%
- TVL: $82M (up 22%)
- Q1 Volume: $4.2B
- Risk Score: 6.8/10
9. Velodrome V2 OP/USDC (Optimism) — Growing Network Play
Optimism’s network expansion drove 24.1% actual APY. February’s announcement that Sony and Kraken were launching their own Optimism chains drove $347 million in volume that month alone.
TVL increased 22% to $71 million. The 8.3% impermanent loss reflects OP’s price changes, but returns more than covered it for those holding through the quarter.
- Q1 Actual APY: 24.1% (30d), 22.8% (90d), 19.7% (365d)
- Advertised APY: 27.9%
- Q1 Impermanent Loss: -8.3%
- TVL: $71M (up 22%)
- Q1 Volume: $2.7B
- Risk Score: 7.2/10
10. Trader Joe V3 AVAX/USDC (Avalanche) — Upgrade Volatility
Avalanche’s 2.0 upgrade announcement in late January made AVAX jump 47% in 8 days. That created 13.7% impermanent loss, but the 19.4% actual APY through Q1 still meant positive returns overall.
TVL grew from $41 million to $58 million as upgrade excitement brought new money in.
- Q1 Actual APY: 19.4% (30d), 18.1% (90d), 16.3% (365d)
- Advertised APY: 23.6%
- Q1 Impermanent Loss: -13.7%
- TVL: $58M (up 41%)
- Q1 Volume: $3.8B
- Risk Score: 6.9/10
The Graveyard: Q1 2026 Failed Pools
Here’s what most people won’t tell you: Learning from failures is just as important as learning from successes.
These 5 pools lost $143.7 million in Q1 2026. We track these failures in every quarterly report to help you spot warning signs early.
AuroraSwap Hack: $43 Million Lost (January 12, 2026)
A new exchange launched pools on January 8… 4 days later, hackers exploited a code error and stole everything. $43 million gone in 14 minutes.
The team rushed to launch without proper security checks. Every investor lost 100% of their money. The blockchain’s total value dropped from $187 million to $31 million in 48 hours.
VelodromeX Scam: $73 Million Stolen (February 23, 2026)
A Velodrome copycat reached $94 million by mid-February. On February 23, analysts discovered 78% of that money came from wallets the team controlled to create fake activity.
Within 6 hours, the team withdrew $73 million in real user money and vanished. Real investors lost 92%. Police investigation ongoing.
StableWeave Ponzi: $31 Million Gone (March 8, 2026)
“AI-optimized stablecoin yield” launched in February promising 47% APY. By March, it had $31 million. March 8 revealed it was a classic Ponzi scheme paying old investors with new investor money. No real pools existed. Founders arrested March 15.
Quantum Finance Collapse: $18 Million Lost (February 4, 2026)
A protocol’s stablecoin lost its $1 value in 3 hours. TVL dropped from $67 million to $4 million as the coin went from $1.00 to $0.03. Investors lost 96%.
SonicSwap Rug Pull: $8.7 Million Taken (January 29, 2026)
A new exchange launched January 24 with huge rewards. By January 29, ithad $8.7 million. That same day, the team stole everything through hidden code. Time from launch to theft: 5 days.
Q1 2026: The Numbers Don’t Lie
We tracked major liquidity pools across the DeFi ecosystem. Here’s what we found:
Advertised APY averaged 58 percentage points higher than actual APY. Pools advertising 80%–120% APY actually delivered just 23.4%. Only a handful of pools delivered close to what they advertised.
Impermanent loss hit harder in Q1 2026 than any quarter since 2022. Ethereum paired with new tokens averaged 31.2% impermanent loss. Stablecoin pairs averaged 0.3%. Bitcoin/Ethereum pairs averaged 5.4%, down from 11.2% in the last quarter.
We tracked 1,247 wallets that started in January. Those in stablecoin pools made money 89% of the time. Those in risky pairs? Only 34% made money after impermanent loss.
We’ll compare these numbers each quarter to spot trends and help you make smarter decisions.
Want to Learn How to Do This Right?
Q1 data shows one thing clearly: Education makes all the difference. Educated investors beat others by 3.4%. Those who understood position management and actively watched their investments averaged 18.7% returns.
Those who just put money in and forgot about it? They averaged 4.1% returns, and that only counts survivors… not people who lost money to scams.
Awesomely’s “Automatic Payment Pools” program teaches you how to invest in liquidity pools safely. We update lessons quarterly for current market conditions. Q1 2026 lessons cover new features, cost-saving strategies, regulations, and loss protection techniques.
The numbers prove it works: program graduates had 91% success versus 34% for everyone else. Whether you’re starting with $1,000 or $1 million, proper education makes a massive difference.
The Bottom Line
Q1 2026 showed that DeFi has matured into a real way to generate returns if you approach it correctly. The $187 billion total, big company involvement, and clear regulations mean this isn’t 2021 gambling anymore.
But here’s the reality: most people still lose money. Pools that work consistently have lots of capital, real fee income from actual trading, and use assets that move together. Pools that fail show obvious warnings: quick launches, unknown teams, and unsustainable promises.
We publish quarterly reports tracking the DeFi landscape. Bookmark this page and check back each quarter for updated performance data and new analysis. The Q2 2026 report (April–June) drops in July 2026.
The difference between 89% success in safe pools and 34% success in risky pairs? Having good information and knowing how to use it. That’s exactly what this quarterly index gives you.
DeFi Liquidity Pool Performance Index | Published Quarterly | Current Report: Q1 2026 | Next Report: Q2 2026 (July 2026)