Monad is a new, EVM-compatible Layer-1 focused on fast, low-latency execution, and its recent mainnet and MON token launch have kicked off a wave of DeFi activity. The quickest way to scan for opportunities is through Merkl, which aggregates Monad strategies across lending and liquidity provision, while popular options currently include deposit vaults on protocols such as Upshift, Euler, and Gearbox, giving users clear starting points from which to navigate Monad’s early DeFi landscape.
Monad launched its public mainnet last month, and its MON token generation event took place at the same time, so in today’s guide let’s take a look at what Monad is, and at some of the Monad DeFi opportunities currently worth checking out as it competes in a crowded marketplace of alternative Layer-1s.
Before starting, be aware of the risks involved when using DeFi, which include the possibility of smart contract vulnerabilities, frontend attacks, stablecoin de-pegs, and extreme volatility across DeFi and crypto.
What Is Monad?
Monad is an EVM-compatible Layer-1 designed to increase transaction throughput as it focuses on fast execution, low latency, and maintaining a clean development environment.
7.5% of the native MON token was released last month through a public sale, while 3% has been distributed via community airdrop. However, fully 18.2 % went to investors, and 25% to the project team, a model which has led to criticism and raises concerns about distribution.
These tokenomics criticisms are certainly something to be aware of if holding MON, although they do not mean that there are not high DeFi yields to be found on Monad. MON currently trades at a $320 million market cap, while TVL on Monad stands at $152 million.
To get a handle on Monad, you can go to the official Monad app, from where you can explore apps within the Monad ecosystem. Plus, you’ll also find links to several bridges, including the Monad Native Bridge, so you can get funds across to the Monad network, and there are links to several apps where you can then make token swaps.
Alternatively, you can buy the MON token directly by clicking on the GET MON button, after which you can connect a destination wallet, and pay by bank card or with crypto in order to receive MON.
Explore Monad on Merkl
An efficient way to start finding yield opportunities on Monad (and on other networks too) is to use a platform called Merkl. This is designed for managing DeFi incentives, and it pulls together opportunities from all around the DeFi ecosystem across a range of chains. When getting started, you can think of it as an all-in-one hub where you can search for and connect with DeFi opportunities.
From the front page of Merkl, you can connect your wallet (MetaMask and other EVM-compatible wallets will work fine), and you then need to navigate to the Monad section, from where you can explore the many Monad-based yield opportunities.
If you scroll down in this section, you’ll find a long list of strategies (there are currently 79 opportunities), including lending and liquidity provision. On this list, you can see the protocols and tokens in use, and quickly check current APRs and TVLs.
Example Monad Strategies
To get an idea of what’s available and highlight some high yields worth checking, let’s take a few examples from Merkl, and…
