Best Crypto Yield Farming Platforms
Yield farming is an investment strategy that involves lending and staking crypto assets to generate returns. Yield farming, which involves locking or staking your cryptocurrencies to earn interest returns, measures their returns in percent per annum. While this method is highly profitable, it is also risky. Yield farming, which provides a way to earn interest on your crypto assets similar to the money in your savings account, allows you to generate returns with an APY above 100%. Due to protocols and the volatility of the crypto market, the potential return can change in a short time. In this content, we will review the best crypto yield farming platforms.
Uniswap is a decentralized cryptocurrency exchange and yield farming platform running on the Ethereum network. One of the first DeFi protocols, Uniswap supports all ERC-20-based cryptocurrencies to provide a similar service to a traditional stock market. The platform has no manager or operator and no central order book is maintained on the platform. On the platform, which has a collection of liquidity pools, users can farm by providing liquidity to the pools.
Liquidity providers contribute to Uniswap pools by locking two assets with a smart contract. Users who help maintain liquidity are rewarded with the platform’s native token, UNI.
Aave is one of the leading decentralized finance protocols. One of the largest DeFi tokens by market cap, Aave allows you to easily borrow and lend cryptocurrencies. Users can borrow and lend a wide variety of cryptos, from altcoins to stablecoins. Aave, an algorithmic crypto market, allows users to borrow in a different cryptocurrency than they deposited. To borrow crypto, more crypto collateral than the value to be borrowed must be deposited. This increases the profits of the lenders.
Synthetix is a protocol for trading synthetic assets on the Ethereum network. Supporting synthetic commodities such as silver and gold, synthetic cryptocurrency indices, synthetic cryptocurrencies and synthetic fiat currencies, the platform introduces non-blockchain-based assets into the crypto ecosystem. Financial instruments in the form of ERC-20 smart contracts known as synths track the returns of another asset without having to hold that asset.
Synths consisting of real world assets such as indices, cryptocurrencies and gold can be traded on Synthetix’s DEX, Kwenta.
Curve is a blockchain-based decentralized cryptocurrency exchange that uses an automated market maker. Based on Ethereum, this platform is an important platform that takes advantage of the potential of the decentralized financial market such as yield farming. Facilitating the process of exchanging ERC-20 tokens, Curve.fi allows to generate income by farming yields with cryptos such as Bitcoin, Ethereum, DAI, USDC and USDT, which are strong cryptos of the market. Curve brings investors the most user-friendly trading and return experience in the market with its high reliability and high APYs.
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Disclaimer: The information presented is subject to market conditions and includes the author’s (Atilla Günduğ) own views and reviews. Please do your “own” market research before investing in cryptocurrencies and following the above information. Neither the author (Atilla Günduğ) nor the Medium page in which the article is published/the relevant company (Kriptolia EN) accepts any responsibility for your financial losses.