Decentralized Finance (DeFi) came with many benefits in terms of making money. One of them is yield farming, and there are many platforms you can use for this purpose. We bring you a list of the best ones you can use to maximize your earnings.
Yield farming is a way to earn rewards by depositing your digital assets in a decentralized application (dapp). You basically earn interest on your digital assets without trading or engaging in any activity like that. It is a way to make your assets work for you.
The deposits can be in the form of staking or lending your assets on a designated platform. For staking, the assets serve as liquidity but in lending, borrowers take up loans in such digital assets. You then get rewarded with either more of the same digital currency, or with a different one.
Here are some of the best platforms you can use for yield farming of DeFi tokens.
Compound
Compound is a renown DeFi platform for yield farming. You get to enjoy rewards for yield farming and staking of crypto assets on the platform. Being an automated market maker (AMM), it has a lot of liquidity that you can leverage to generate rewards without a hassle.
Yield farming products include curated portfolios, lending and borrowing options, and staking rewards. You can also opt to earn by depositing your assets in Compound’s interest-bearing accounts. This way, you get to earn passive income without getting exposed to the risk of yield farming.
The variety of yield farming products affords users many options to choose from, making it flexible. The platform’s design also makes it easy to use, even for beginners. Compound’s fees are however on the high side compared to other DeFi protocols, so you might need to keep this in mind.
Yearn Finance
Yearn Finance is a DeFi protocol that helps individuals and individuals, DAOs, and other protocols earn yield on their digital assets. Using Ethereum Vaults, Yearn is able to provide users with automated liquidity so that users can seamlessly swap tokens.
Users can earn rewards by providing liquidity for different assets and get competitive APYs on their assets. The platform has a simple design, so that even absolute beginners can easily hop on it and start yield farming immediately, making it a great place to start.
eToro is a household name when it comes to social trading, but that isn’t all that it is known for. This crypto exchange of Israeli origin also facilitates DeFi yield farming and earning of staking rewards. All you have to do is hold your Ethereum, Cardano, or Tron locked for a period of time and earn rewards for staking.
You’ll enjoy a range of yield farming products on this platform, including stablecoins and crypto-backed loans. You can also access a wide range of DeFi protocols for increased liquidity through the eToroX platform. Both experienced and beginner yield farmers will find eToro’s robust platform perfect for generating passive income.
Crypto.com is another trusted platform that offers users yield farming and staking options to earn passive income using a wide range of digital assets. It has a stake and earn feature that pays you rewards just for holding your supported digital assets on the platform.
You can use it to diversify your portfolio also, without having to go through yield farming which has its own risks. Crypto.com is known for its strict compliance with regulations, so if you’re looking for a secure platform to earn some income on your crypto portfolio, you should check it out.
Conclusion
If you were looking for a place to start yield farming or staking for rewards, these are the ones you should check out. Highly secure, with sufficient liquidity and, they can help you achieve your goals with their multiple products.
Which one you should use? The choice is yours, because they’re all designed to help you earn, whether you’re a complete newbie or an experienced crypto investor.
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