DeFi Platforms Generate $8 Billion in On-Chain Yields, But Distribution is Uneven

A recent analysis of DeFi platforms revealed that they generated approximately $8 billion in on-chain yields in 2025. However, despite this high total, the distribution of these yields is uneven, with many exhibiting cyclical patterns.

The study found that borrowing demand is recursive, with users borrowing and recycling funds to other yield sources. This phenomenon accounts for about half of lending demand, which has significant implications for the sustainability of current DeFi yields.

According to the analysis, AMM transaction fees constitute the largest single category of revenue, amounting to approximately $4.2 billion. However, these fees are difficult for structured products to capture due to frequent losses suffered by liquidity providers.