We have witnessed promising growth in Polygon (Matic) DeFi recently, as this Layer 2 blockchain solves the problem of high gas fees and slow transactions on Ethereum. Several leading DeFi projects on Ethereum such as SushiSwap and Curve have expanded into the Polygon ecosystem.
Meanwhile, many other unique and colorful yield-farming platforms have emerged originally on the Polygon Blockchain. Today we are introducing how to do yield farming in 3 native protocols built on the Polygon blockchain: QuickSwap, PolyZap Farm and Polycat Finance. They currently rank №3 to 5 in all Polygon dapps.
To get prepared, don’t forget to transfer your tokens from Ethereum to Polygon first. Now, check this brief guide on Polygon yield farming.
Dex — QuickSwap
QuickSwap is a native AMM Dex (decentralized exchange) on Polygon, essentially a fork of Uniswap.
Liquidity providers in QuickSwap earn a 0.25% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.
You can deposit your LP tokens to farm $QUICK, the Quickswap protocol governance token.
APYs for Quickswap’s liquidity mining are currently ranging from 20% to over 180000% on BIFI-QUICK pairs. Since liquidity provision is required, you would have to consider the risk of impermanence loss.
QuickSwap has had an amazing on-chain performance recently. As the dashboard demonstrates, the users, volume and transactions all started to surge in Apr.
The 90d users increased by 1297.45%, and the 90d volume tremendously increased by 7073.48%.
The $QUICK token price shows a high correlation with QuickSwap’s on-chain data, as you can see the price curve moves in the same direction with the user/volume/transaction curve.
Dex — PolyZap Farm
PolyZap Farm is a Layer 2 Dex and yield farming project on Polygon. It has Zap farm and Zap Cloud pools where you can earn $PZAP, the fuel of PolyZap eco by staking LP tokens and other tokens you already have.
- Zap Farms: Stake your LP tokens to earn $PZAP.
- Zap Pools: Stake single tokens to earn $PZAP.
The highest APY in PolyZap Farm is above 1,000,000% for the PZAP-BTC farm at the time of writing.
As the dashboard indicates, the $PZAP token price is highly correlated with the PolyZap Farm’s on-chain volume.
Yield Aggregator — Polycat Finance
Just like Yearn.Finance on Ethereum and Pancakebunny on Binance Smart Chain, Polycat Finance is the yield aggregator on Polygon that helps to auto-compound your deposits to maximize returns.
It offers yield farms, pools and yield optimization vaults:
- Vaults: Auto-compounding your yields to grow your deposit.
- Farms: Stake your LP tokens to earn $FISH, the utility token of Polycat Finance. You need to provide liquidity for $FISH first in QuickSwap or SushiSwap.
- Pools: Stake single tokens to earn $FISH.
The highest APY in Polycat Finance is 83,831.10% for the $FISH-MATIC farm at the time of writing. Yet you need to bear the price fluctuations of the $FISH token.
$FISH price has a close correlation with Polycat Finance’s on-chain users and transactions.
You can track Polycat Finance’s performance as your price indicator.
