Top 10 Yield Farms to earn passively on your Crypto

Yield farming is one of the best ways to earn returns on your crypto holdings. A user, who is known as a liquidity provider, has the option to deposit their holdings into one of the liquidity pools supported by the different platforms on multiple chains which are in turn governed by smart contracts. Here’s the list of Top 10 Yield Farming platforms to generate returns -

Uniswap

Uniswap is one of the worlds leading decentralized crypto exchange platforms built on the Ethereum blockchain. The platform supports almost all the ERC-20 tokens that are currently in use. A liquidity provider gets a chance to earn a fee or an interest on every swap on the pool. The interest rates vary from pool to pool and are also dependent on market conditions. Currently, the platform has $5.5 billion assets worth locked in, which helps users earn up to 25% APY.

Aave

Aave is the leading Defi protocol in the web3 world being built over the Ethereum blockchain. It has previously allowed users to earn up to 15% APR on its platform via different pools supported. As investors have pooled a lot of crypto into Aave to earn interest, its borrow APRs are some of the best on the market.

PancakeSwap

PancakeSwap is a decentralized exchange being built over the Binance Smart Chain. The platform supports BEP20 tokens – a specific token standard developed by Binance. For farming the tokens, the reward is paid in a native token called Cake. Though the platform has a high impermanent loss, it is claimed to give an all-time high of 603% returns annually.

Curve Finance

Curve Finance is a leading decentralized exchange in the market, also built on the Ethereum blockchain. It has over $7 billion in assets locked on the platform. The platform supports a unique algorithm that helps it utilize its assets more efficiently via the pool. Users get a chance to earn up to 20% APY on their crypto holdings.

Yearn Finance

Yearn Finance is a decentralized protocol built on the Ethereum blockchain that allows users to earn on their crypto holdings via lending, pooling, and staking. The platform supports 25+ Yearn-integrated Curve pools where investors can deposit 1/5 different cryptocurrencies (ETH, WBTC, DAI, USDT, or USDC) into a smart contract that deposits into the corresponding pool on Curve to earn interest. Users can and have previously earned up to 30% APY on the platform.

Defi Swap

Defi Swap is relatively a new decentralized exchange platform that also supports yield farming. It has a native DEFC token and has allowed users to earn up to 75% APY via a liquidity pool. The platform has a lock-in period of 30-365 days.

Harvest finance

Harvest finance is an automated protocol allowing users to put their crypto assets across yield farms and generate returns on the same. The platform is being built over the Ethereum blockchain. The native token on the platform is called FARM. The impermanent loss on the platform is towards a higher end. The platform allows users to earn up to 17% APY on the deposited amount.

BakerySwap

Just like Uniswap, BakerySwap is a Defi-based decentralized exchange built over the binance smart chain. It allows users to exchange and swap crypto assets. The platform offers various pools for farming. It has previously generated an all-time high return of 256% annually.

SushiSwap

SushiSwap is a decentralized exchange platform with the native token SUSHI. The platform is the forked version of the Dex Uniswap. The total locked-in value on the platform is above $40 million (Note: $40 million is the total locked-in value on a single pool which is the highest of all the pools taken together). Users who are the liquidity providers have the chance to earn up to 25% APY depending on the market conditions.

Value Defi Protocol

Value Defi Protocol is Defi based protocol that allows users to earn interest via yield farming with multi-strategy yield optimizers. The platform has helped generate an all-time high return of - 365% calculated annually. The reward for users is rewarded in VALUE tokens.

Conclusion

Yield farming as an investment strategy has gained a lot of popularity, especially after 2021. Yet, at present, yield farming comes with risk and is an option for wealthy risk-taking investors. Some of the risks include - scammy pools, impermanent loss, etc. As the world of decentralized finance is shaping, yield farming would grow and become a regular norm in the market. If you liked reading this article and are intrigued by passive earnings, check out Flint - we grow your crypto using risk-managed strategies while you sit back and earn passively