Top 5 Yield Farming Tokens For 2022
If you’re unfamiliar with Yield farming, here is a brief explanation for you! Yield farming is a Crypto investing method that promises higher returns than most traditional investments. Staking or lending Crypto assets in order to create high returns or rewards in the form of additional Cryptocurrency is known as Yield farming. In simple words, it’s a method of earning money with your current Crypto by lending it out and staking it in liquidity pools. There are several popular Yield farming opportunities.
Yield farming is currently the most important development leader in the still-developing DeFi sector, helping it to grow from $500 million in market capitalization to $10 billion by 2020. Yield farming projects appear to have been overlooked amid the current surge of Metaverse and Meme currencies. Yield farming is still one of the most popular ways to earn rewards with your Crypto, even though the “DeFi Summer of 2020” is over. Here’s a list of the best 5 DeFi currencies you should keep an eye on in 2022.
Also read: The Novice Guide To Yield Farming On DeFi
1. Uniswap (UNI) — $14 billion:
Uniswap, one of the most popular decentralized exchanges on the Ethereum network, is known as the king of DeFi exchanges. Uniswap currently has a trading volume of about $27 billion per day among its three main versions. For those perplexed as to why there are several versions of Uniswap, each version improved the exchange’s capital efficiency and accuracy. As a result of this, users will benefit from lesser costs and better rates. Users can also use the Pool feature in their online portal to supply liquidity to Uniswap. The method is similar to PancakeSwap; however, this takes place on the Ethereum network. Uniswap is an excellent long-term initiative because it is the leading decentralized exchange.
Also read: Top 3 DeFi Tokens To Watch Out
2. PancakeSwap (CAKE) — $4.4 Billion:
Unless you’re completely new to the Cryptocurrency industry, you’ve probably heard about PancakeSwap. With over $19 billion in trade volume in the last 24 hours, it’s the most popular decentralized exchange on the Binance Smart Chain. PancakeSwap users can yield Farm by giving liquidity to the site. Users will get LP (Liquidity Pool) tokens for their participation, which can be exchanged to CAKE or any other Cryptocurrency. It’s no wonder that PancakeSwap is one of the most valuable Yield farming coins, given that it’s one of the most popular decentralized exchanges. Moreover, PancakeSwap’s popularity is only increasing, making it an excellent initiative to keep an eye on in 2022.
3. Aave (AAVE) — $3.7 billion:
Aave is the leading Crypto-lending platform, and it looks to develop significantly in 2022. Aave is an open-source liquidity platform that lets users earn interest on their assets by depositing and borrowing them. At the time of writing, the Aave platform had over $23 billion in assets staked on the Aave platform, demonstrating the scale of the DeFi movement.
This token incentivizes users to use the network by providing fee discounts, governance vote power, and a variety of other benefits. It’s not unexpected to find many liquidity pools working together when it comes to Yield farming. From the assets available on Aave, the highest-earning asset is Compound with a deposit APY of 6%. When it comes to Yield Farming, it’s a wonderful option if you’re trying to earn interest in your existing Cryptocurrencies.
4. Compound (COMP) — $1.9 billion:
Like Curve DAO, Compound lets users deposit Cryptocurrencies into liquidity pools and earn cTokens as a return. Furthermore, Compound compensates users with COMP tokens for interacting with their platform, further encouraging the ecosystem. In the DeFi world, Compound rules like a supreme king. The Compound network had over $17 billion in assets producing income over 16 networks at the time of writing. The Compound is a great place to start if you’re trying to generate money using DeFi.
5. Curve DAO Token (CRV) — $1.5 billion:
Curve DAO is a decentralized exchange and market maker protocol. The Curve network is powered by the ERC-20 token Curve DAO Token (CRV). Curve DAO acts as a competitor to Uniswap by making it simple to swap between different ERC-20 tokens. Curve DAO, unlike Uniswap, is designed to convert ETH into Stablecoins such as USDC, DAI, and others. The curve can also trade tokens for lower rates because it compensates users in CRV rather than charging swap fees. Holders of CRV coins can stake their coins to gain rewards or join the CRV liquidity pool and earn tokens that way. Even though Curve DAO is one of the most popular Yield Farming systems, the project’s long-term outlook is quite bullish.
Also read: 5 Best Cryptos To Invest In 2022
Conclusion:
Yield farming is a terrific way to make money with your current Crypto. Yield farming, on the other hand, delivers the best returns when an asset is trading sideways. As a result, Yield farming is recommended if you believe the assets will continue to trade at the same level without much price movement. In addition, it is an excellent demonstration of some of DeFi’s most powerful capabilities.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
