6 Most Profitable Yield Farming Platforms – Blockchain Cryptocurrencies
The latest craze in the finance world is undoubtedly cryptocurrency. The monstrous growth of Ethereum and Bitcoin assets over the past year has become the only shining light in what the Queen would have already (but understandably) written off as an ‘Annus horribilis.’
The doubters have become blind believers. And even newbies with no idea of what tokens are, assert to their friends and families that cryptocurrency is everybody’s path to financial freedom.
Of course, while they might be right that the future is here, the end to that story is predictable by now. If these people don’t find the true source of the crypto heat – yield farming – it will be another sad tale of falling victim to the numerous get-rich-quick schemes out there.
Indeed, yield farming is one of the few channels that offer the window of opportunity for investment in crypto in the craziest of ways. Either by lending or borrowing, many people have figured out ways to take advantage of yield farming. On that note, here are the six farms that currently yield the most:
One doesn’t rant about yield farming post-lockdown without paying tribute to the legendary DeFi Comp tokens. Since her debut on June 15, 2020, the value of the tokens has risen as high as $200, shocking Compound’s team and investors, and that momentum is not looking like it will run out of steam anytime soon.
The Compound protocol banked on creating activity on the platform by just giving away the tokens daily, and the world responded. After all, who wouldn’t develop an interest in a deposit that yields benefits even if you were the one taking the loan? What’s better? You can stack the yields by lending out what you borrowed from what you had initially lent out, all to multiply your yield — a true game-changer in the world of ‘Compound’ interests.
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Unlike Compound, Binance is a crypto margin lending platform. That means it serves as the emergency reserve for traders looking to open leverage positions that will require more capital than they can afford at the time. Binance offers people with idle cryptos the option of giving out loans at ‘meh’ interest rates (around 0.83% for ETH).
Margin lending is a volatile business since the yield fluctuates based on the demand and supply of the loans. Then again, which part of cryptocurrency isn’t watery?
If you’re looking for a more profitable yield farming platform than Binance, then BlockFi is the fastest solution. Simply put, BlockFi offers 4.5% interest rates for ETH loans (where Binance offers 0.83%) and 6% for BTC (where Binance offers 0.75%). The only minor drawback is that BlockFi is a lot stricter than their counterparts, requiring KYC validation, among other certifications that can be such a hassle. Get through all that, though, and you get better deals.
Another alternative to margin lending platforms is NEXO, which uses a centralized lending system. The centralized nature of the loan origination makes the interest rates more stable since the stability puts the interest rates out of the hands of market forces and under the control of the system. For the lenders and users, that’s great news as it affords greater interest rates.
People more adept with the nature of cryptocurrencies can venture into the world of stakable currencies. The deal is that by helping a blockchain to stay secure (or by ‘staking’), you get rewards. COSMOS is one of the big boys in that world, and the platform has amassed a serious following in the past year, with its 8.3% interest rate drawing people in by the minute.
Compound might be the hottest player in the DeFi Universe right now, but it all began with Synthetix. Right now, Synthetix accounts for more than one billion dollars locked away in their crypto vault. Staking a blockchain is a way of earning greater investments in currencies with potential, and thus, requires absolute caution. but the 53.79% interest rate that Synthetix promises has made millions of people throw their caution to the wind.
So, there they are, the biggest yield farms waiting for you to sow your financial seeds. The probability of success and failure is as predictable as the number of times you’ll blink tomorrow, but what’s life without a little risk?