The Top yield farming opportunities using USDN in the WAVES ecosystem
The best opportunities for users to utilize USDN
At the end of May, we launched our Revival Plan setting the stage for the next era of DeFi. These past few months in the crypto space have tested every protocol, team, and user, and has been a true testament to the resiliency of the Waves community.
Waves has proven to be able to withstand some of the toughest market conditions we’ve faced in Web3’s entire lifespan, and the future has never been brighter for where the protocol is headed.
The teams building here on Waves are together one of the strongest groups across the entire crypto ecosystem, and with that comes a host of yield farming options for users to utilize their USDN.
With that being said, let’s dive into the best ways you can start utilizing USDN today!
Exploring the Waves Ecosystem
Below we’ve highlighted 4 of the top protocols in our ecosystem and the yield farming opportunities each of them currently offers.
1. Neutrino Protocol
Neutrino enables the creation of stablecoins that are pegged to real-world assets or other cryptocurrencies, and is the home of the native Waves algorithmic stablecoin, USDN.
Single-sided stake USDN and earn up to 15% APY
Neutrino’s single-side staking offering is perfect for users looking to avoid impermanent loss and market volatility. The yield from Neutrino is generated by leveraging the staking reward system from the Waves Monetary policy and LPoS consensus algorithm.
Compared to other DeFi yield products that generate yield through borrowing, Neutrino’s use of the Waves monetary policy generates this yield without the liquidation risk.
The platform is extremely accessible, as you can stake USDN directly on Waves.Exchange or centralized exchanges like KuCoin. The easiest way for users to stake their USDN on Neutrino can be found here.
Waves Exchange
Waves.Exchange is a unique application users can download that acts as the trading hub for any token in the Waves ecosystem. Compared to traditional DEXs, Waves.Exchange was built with the end user in mind creating an intuitive interface for the masses. The platform boasts the third largest TVL in the Waves ecosystem and is one of the most popular places for users to stake USDN.
Top USDN Opportunities on Waves Exchange
There are several core offerings that can be broken into 5 buckets, each with varying levels of risk attached.
Liquidity Pools
Users can provide liquidity paired with USDN and earn up to ~100.64% APY paid out in WX tokens. The platform allows users to increase their rewards up to 3x by locking their earned WX tokens to receive gWX which represents their locked amount. The longer your locked balance is held, the higher multiplier you receive.
The reward from the liquidity pools depends on the amount of profit the individual pool is receiving. Waves.Exchange LPs each have a base vAPY (variable APY) which represents the number of pool tokens liquidity providers receive when they decide to withdraw. The more profit the pool brings in, the higher the base vAPY.
Lambo Pools
Lambo is an algorithmic trading strategy where users can earn up to ~63.7% APY on USDN with a guaranteed maximum drawdown of 10%.
This pool is further out on the risk curve because of the usage of a trading strategy versus distributing yield to stakers via the traditional DEX model of paying out a portion of trading fees.
Because of this, DeFi users should know the risk of this specific pool compared to a single-side staking contract. If you’re interested in learning more, Waves.Exchange offers complete transparency on funds and the smart contracts they use to generate the yield from.
Single-sided staking
Waves.Exchange offers two ways to single-side stake: Neutrino Staking and Neutrino Pools.
Neutrino Staking are pools for assets created from the Neutrino Protocol. Users can earn rewards up to 6% depending on the token. For USDN, the APY currently offered is ~0.12%.
A more lucrative option are the Neutrino Pools. When one deposits USDN, the stablecoin plays a key role in the insurance part of the Neutrino Pool as secondary asset collateral. This ensures stability of the pool, which in turn creates a positive flywheel for DeFi users to earn rewards.
DeFi users can earn rewards up to 26% on USDN in the Neutrino Pools which are distributed daily.
Swop.fi
Swop.fi is a more traditional DEX interface that offers a wide array of cryptocurrencies and farming opportunities. The platform also operates a protocol launchpad where users can allocate USDN into new project launches.
One call out before diving into farming opportunities is the ‘First Harvest Rule’ Swop.fi has implemented. Instead of launching pools and allowing anyone to deploy capital, SWOP holders can utilize their tokens to vote for the pool’s weight.
The tokens are then locked for the first week called the ‘First Harvest’. During this period, only users who voted for the pools are able to allocate their tokens to the pools giving them access to lucrative APY before the general public.
The APY reward is generated through trading fees, Neutrino staking, and borrowing and lending.
Top USDN Farms on Swop.fi
Swop.fi has some of the highest APY farms in the Waves ecosystem with some exceeding ~1000% APY.
Some of the top USDN SWOP farms that stood out to us are below:
Stable Pools
- USDC-USDN — 21.62% APY
- USDT-USDN — 47.46% APY
LPs
- VIRES_USDT_LP-USDN — 366.58% APY
- NGNT-USDN — 1000% APY
Puzzle Swap
Puzzle Swap is an innovative DEX that allows users to customize and gain exposure to multiple tokens in one liquidity pool. They also have a built-in mechanism called ‘Fair Routing’ which is a routing service between custom pools and other AMM exchanges on Waves. This allows the creation of these custom pools and minimizes overall expenses for users.
Like traditional AMMs, the pool rewards are generated through fees associated with trading, lending, and borrowing.
Top USDN pools on Puzzle Swap
Once you are connected to the dApp, you can view the Puzzle Mega Pools that are available to deposit USDN into through the top tabs.
The pools are broken into two categories: community and Puzzle Swap team.
Community Pools
There are a few community generated stable pools that stand out from the pack.
The first we want to highlight is the ‘USD 4pool’. For users not wanting to deal with market volatility, the 4pool is equally weighted with USDN, DAI, USDC, and USDT. The pool is currently giving 4.74% APY, and is a great choice for users who are more risk averse.
On the opposite end of the spectrum is the ‘Ultimate Neutrino PuzzlePediaPool’. This is currently the most lucrative community generated pool offering 14.39% APY and is 20% USDN. The other 80% is equally distributed between 3 non-pegged tokens and Neutrino EUR.
Puzzle Swap Pools
While the Puzzle Swap team is currently only offering 3 stablecoin pools, all of them are viable opportunities for DeFi users.
The ‘Warm Winter Pool’ is an LP composed of 6 assets with a 50/50 allocation of stablecoins to non-pegged tokens. Although the pool is still susceptible to impermanent loss due to market volatility, the 50/50 split makes this pool a viable option for USDN holders.
Another pool that is even more heavily allocated to USDN and stablecoins is the ‘Vires USD Pool’. This farm consists of 60% VIRES-USDT and VIRES-USDN LP tokens and 40% USDN. Because they use the stable-paired LP tokens, this gives a heavier weight toward USDN and decreases the risk factor from price movement on VIRES. On top of this, they are currently offering a whopping 174% APY.
Get started Earning USDN Rewards Today
Waves is one of the fastest growing ecosystems in crypto, and new opportunities for users to deploy their USDN are emerging every day.
USDN has proven its resiliency to even the harshest market environments, and the team at Waves is continuing to improve upon and ensure the stability of the stablecoin.
The yield farming opportunities on WAVES are some of the best opportunities in the entire space for DeFi users looking to put their capital to work. To keep up with new developments and more opportunities, make sure to join the community and follow us on Twitter!
