Decentralized finance (DeFi) has brought a new layer of excitement to the crypto markets, as it made clear that producing profits in the crypto markets is possible even without hodling.
What is Yield Farming?
Yield farming is the cryptocurrency equivalent to receiving a yearly yield on bank savings.
Yield farming, unlike bank APY, is not a passive investment.
At its most fundamental, yield farming generates fees by lending cryptocurrencies via smart contracts.
It may appear straightforward, but there is a lot to it.
If you are looking to farm yields on the Avalanche ecosystem, you can’t miss the following tools that will help you rapidly grow your stack.
Embr.Finance is an Automated Market Maker based on Balancer V2.
Weighted Investment Pools, Stable Pools, Trading, and Farming are all available on the site.
Embr.Finance offers a variety of pools to choose from with super high yields and the option of providing liquidity with up to 8 different tokens, which minimizes impermanent loss.
At writing EMBR Finance allows for yields of up to 300% APR on the EMBR/WAVAX pair and up 112% APR on the MIM/AUSD pair, which is one of the craziest yields you can get on stable coins.
Rewards are paid into the EMBR token, the platform’s native token.
2. Avaware – Great for Stablecoin Staking
Avaware is Avalanche’s DeFi center point with a yield farm, a launchpad incubator, and an NFT marketplace.
Avaware.Network offers liquidity pool farming with 25 LP’s and a one-way $ AVE staking pool. These farms aim to find a balance between high yield and sustainability.
In addition to this wide range of LP farms, Avaware also offers stablecoin farms with desirable yields with up to 36% APR.
Yields can go up to 273% for the AUSD/AVE pair and considering that AUSD is a stable coin is the perfect way to risk-off in volatile markets.
3. Yield Yak – Avalanche’s Most Famous Farms
Yield Yak is a simplistic tool for increasing yield from DeFi farming on the Avalanche network.
It is a project driven by the community which means that the community helps develop by compounding incentives, proposing new techniques, and recommending crucial configuration improvements.
Yield Yak is one of the most important protocols on the Avalanche network with its TVL sitting at $300,000 at writing.
It features several farms with single assets, LP’s, and stablecoin farms. While it’s one of the most famous farms and yields can go down quickly, great opportunities arise all the time for those who are on the look for lucrative returns.
Yield Yak also features 2 native tokens, $YAK and $MYAK which will receive $AVAX for those who decide to stake them.
4. Pangolin – A Safe Play
Pangolin is one of the biggest Avalanche-based decentralized exchanges that employs the same automated market-making (AMM) mechanism as Uniswap.
It has a native governance token called PNG that is entirely community distributed and can trade all tokens minted on Ethereum and Avalanche.
For some time now, Pangolin has been DeFi’s home on Avalanche, and it’s considered one of the safest Dex’s that doesn’t compromise on returns through liquidity provision, with some pairs yielding up to 2000% APR.
Furthermore Pangolin’s token, PNG features great tokenomics that enable a community-driven project and eliminate token dumping. Most LP’s will reward users with PNG tokens, which makes the yield farming on Pangolin even more attractive.
5. Penguin Finance – The Fun Way to earn yields
Penguin Finance is a DeFi protocol that was created as a reaction to both formative needs and high gas fees.
The team’s goal is to give a seamless DeFi experience to its consumers by developing an innovative collection of decentralized apps and financial products.
Penguin Finance provides yield-farming, staking, and the Emperor Penguin game.
The platform offers a big list of liquidity pairs with competitive yields and pays back users with PEFI tokens.
Yield farmers are incentivized to stake PEFI tokens in the farm and earn iPEFI, a yield-bearing asset with no risk of impermanent loss.
Pefi Finance is one of the greatest DeFi tools in the Avalanche ecosystem since it’s consisted of a great team that hasn’t failed to deliver.
While all these platforms are awesome, Avalanche is a developing ecosystem and there are more to come.
Yield farming and DeFi on Avalanche will only get bigger and better. Follow us closely as we constantly cover the best projects and drop a comment if we forgot to mention your favorite platform!