The “new” way to farm yield on stablecoins

Let’s start by talking about the “old” way of farming stablecoins, which is by pairing two stablecoins in a liquidity pool and waiting for the trading fees to come in. Yeah, it’s pretty much like fishing, but instead of catching fish, you catch fees! Don’t worry; no animals are harmed in this process, except maybe some bears and bulls on the trading charts.

Yield aggregators such as Grizzly.fi, Beefy, Reaper farm, Kyberswap, and Archimedes finance help investors access liquidity pools and optimize their yield as we can see below.

But let’s be real; the process is pretty hands-off, but those rewards are limited, with returns ranging from 10% to 30% APY (Unless with leverage). You deposit, you compound, and you withdraw. Rinse and repeat. It’s like going to the gym and using the treadmill for 30 minutes every day. It’s good for you, but you won’t see massive gains without putting in some extra effort.

So, would you rather keep it this way, or do you want to invest a couple of hours and dedication once to boost those rewards to over 100% APY? (or even more!) I know what my answer would be, but it’s up to you to decide.