Yield farming is one of the ways that DeFi investors can make money passively by simply staking their crypto assets. Because DeFi platforms use liquidity pools to trade rather than order books as is the case with centralized exchanges, they need liquidity providers.
Liquidity providers are in turn rewarded with liquidity provider (LP) tokens, which they can use for yield farming. Although it is a very broad term, it simply refers to any activity that generates yields on your DeFi or other tokens, including lending, staking, etc.
Choosing the platform to use for your yield farming is as important as the yield farming itself, because the platform determines what you get out of the exercise. The following are some of the best platforms you can use to start your yield arming.
Compound
Compound is a leader in the world of DeFi, and especially in yield farming. It is an automated market maker with deep liquidity, making it ideal for anyone looking to go into yield farming.
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You can farm yields through curated portfolios, lending and borrowing options, and staking rewards. The interest-bearing account on the platform is also a viable option for generating yields without getting exposed to the risks of yield farming.
Compound’s simple design makes it easy to use even for absolute beginners, and the variety of products gives users a diversity of options to choose from.
Crypto.com
Crypto.com has established itself as a leading cryptocurrency exchange, but it is also a leader in the DeFi world. You can farm yields and earn from staking on this platform using different tokens.
You can earn passive income from the platform via its stake and earn feature that lets you stake assets and reap rewards without having to do anything else. This is a suitable option if you don’t want to be exposed to the risks of yield farming itself.
Crypto.com has a reputation for regulatory compliance, making it a great place to be when it comes to yield farming.
eToro
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eToro is a force in the crypto trading space, and also provides a platform for yield farming. Its yield farming products include stablecoins and crypto-backed loans. It also provides access to other DeFi protocols and increased liquidity through the eToroX platform.
Alternatively, you can also use the platform’s staking service to earn rewards by staking your crypto assets. You can earn rewards by staking Ethereum, Cardano, and Tron whether you’re a beginner or an experienced crypto user.
Yearn Finance
This DeFi platform offers various services to its users, including yield farming. Yield farming pools are offered through the Curve Protocol and some of them can be very profitable.
The simple design of the platform makes it easy to use for people of all experience levels. You can also opt for the Yearn.finance vaults which works just like staking. Simply deposit assets to the vault and earn.
CropperFinance
CropperFinance is a platform built for yield farming on Solana, so if you’re the network’s fan, then this is an option to consider. Apart from yield farming, you can use other services including token swaps, liquidity pools, and staking.
The platform is also known for enabling users to invest in new high-quality cryptocurrency projects launching on Solana. You can earn an APR of up to 392% staking on this platform, making it one of the most rewarding out there.
Aave
Aave is an open-source liquidity protocol that offers yield farming services with cross-chain functionality. This means you can earn yields on multiple blockchains all at once.
It supports Ethereum, Polygon, Avalanche, Optimism, and Arbitrum. With over $7 billion in total value locked, Aave is one of the DeFi protocols with the highest liquidity in the space. Dai, LUSD, USD Coin, Tether, and Balancer. You may also choose to stake Aave native tokens which give even higher earning rates to investors.
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