NOTICE: THIS DOCUMENT IS INTENDED FOR MEMBERS OF OUR INVESTMENT CLUB. IT IS PUBLICLY ACCESSIBLE FOR INFORMATIONAL PURPOSES ONLY. ALL STRATEGIES DISCUSSED ARE HYPOTHETICAL AND NOT FINANCIAL ADVICE OR RECOMMENDATIONS. MEMBERS SHOULD CONDUCT THEIR OWN DUE DILIGENCE BEFORE MAKING ANY INVESTMENT DECISION.
This investment letter provides a forward-looking analysis of DeFi yield strategies for November 2025, with a focus on stable, reproducible, and high-yield opportunities across Arbitrum and Base networks. Our objective remains clear: empower members of our private investment club with consistent income streams and defensive yield farming configurations designed to outperform market volatility.
The DeFi market continues to evolve under macroeconomic tension and market uncertainty. Despite recent drawdowns, on-chain indicators suggest that the market has not yet entered a long-term top phase. While short-term sentiment is fragile, structural fundamentals remain intact — offering yield-focused investors a unique opportunity to accumulate and compound.
For this edition, we present two core strategies:
Our thesis remains risk-adjusted yield optimization: balancing attractive APY with smart contract reliability and liquidity depth. Every configuration remains non-custodial, transparent, and verifiable on-chain.
The first days of November have seen renewed market stress, as global risk assets faced sharp pullbacks triggered by renewed geopolitical uncertainty and institutional outflows. Bitcoin retraced below $100,000 after failing to hold the $109,000 zone, while Ethereum fell back toward arround $3,000. Despite this short-term weakness, on-chain data indicates no weekly structural distribution pattern consistent with a market top.
The MVRV ratio and Pi Cycle indicators both remain well below historical overvaluation levels, while realized cap data shows net accumulation among long-term holders. This suggests that current volatility may represent a mid-cycle shakeout rather than a macro reversal of trend or the very early stages of a pre-distribution phase.
Institutional behavior remains mixed. ETF flows turned negative for the first time in months, while DeFi liquidity depth increased on Base and Arbitrum as risk capital rotated toward yield-based strategies. Funding rates on major perpetual markets turned neutral after two weeks of elevated longs, reflecting the market’s search for equilibrium.
Outlook for November 2025:
Our positioning remains defensive-yield-oriented, emphasizing cash-flow generation and capital preservation while waiting for confirmation of a renewed bullish impulse.
Target APY: 10%–18% blended
Selected Protocols:
On Arbitrum:
On Base:
| Risk Type | Description |
|---|---|
| Maturity Risk | PT tokens have fixed expiry dates; early exits may cause yield loss. |
| Smart Contract Risk | All protocols audited, but DeFi automation introduces non-zero risk. |
| Liquidity Risk | Limited liquidity may impact exit timing. |
| Incentive Volatility | Yields fluctuate based on token emission schedules. |
| Underlying Asset Risk | Stablecoins may face depegging in extreme market conditions. |
Target Outcome: ~18% blended APY with controlled risk exposure and reproducible execution.
On Arbitrum:
On Base:
Expected Outcome: A balanced ETH, BTC yield strategy generating 10–50% APY, combining liquidity rewards and base lending yields.
For advanced members, combining Hyperhedge (for delta-neutral funding capture) with Lighter DEX offer attractive risk-adjusted returns and farming airdrops exposures.
This configuration allows fully hedged exposure with sustainable funding-based income and potential upside from airdrop incentives.
Protocols:
Tools:
Thank you all for your commitment and trust as members of our investment club. Your engagement enables us to explore, share, and implement promising DeFi strategies together. We are also excited to offer automated vaults that implement these yield strategies based on the same proven principles we discuss in this newsletter. These vaults are exclusively accessible to club members, providing seamless, hands-off yield optimization with professional-level risk management and automation.
Please remember that all our investment proposals involve risk, including potential loss of capital. We strongly advise conducting your own due diligence and consulting with financial professionals before making any decisions. The strategies we discuss are for informational purposes only and do not constitute financial advice. We appreciate your understanding and look forward to continuing this journey with you.
Fazio Nicolas
CTO - HexaOne Labs