Yield farming is especially effective in times of high market volatility because the increased trading activity generates more transaction fees for DeFi platforms. These fees can lead to profitable returns for yield farmers, providing a steady source of income even when the market is unstable.
Today, we're highlighting some of the top-yield farming opportunities in the market.
Oh wait… There is more!
While farming one of these opportunities, you can also qualify for an airdrop.
Let’s get started!
TLDR
Whether you're experienced in crypto or just starting out, you’ll find these yield opportunities quite rewarding.- Volatile yields
- MOG - ETH: 300% - 400% APY on average | on Base
- USDz - ETH: 114% APY on average | on Base
- PYUSD - JitoSOL: >99% on average | on Solana
- Stablecoin yields
- USD+: >30% on average | on Base
- USDz: > 30% on average plus a potential airdrop | on Base
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. "One Glance" by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. These are not signals, and they are not financial advice.
Volatile yields
Yield farming is a process in DeFi where users earn passive income (interest) by providing liquidity to a decentralised platform.To participate in yield farming, users typically need to deposit their crypto assets into a liquidity pool, which is a smart contract that contains a pool of funds. These funds are used to facilitate trades and other financial transactions on the platform.
In return for providing liquidity, users are rewarded with a portion of the transaction fees or a percentage of the total value of the liquidity pool.
If you are optimistic about the future performance of the assets in your portfolio and are planning hodl through the volatility, yield farming allows you to put them to work to earn some extra on the side while you wait for price appreciation with time.
Below are 5 yield opportunities that we believe are highly appealing right now.
MOG-ETH (Base)
MOG is a leading cat memecoin on Ethereum and an excellent beta play for ETH. We covered MOG extensively here.Both assets in this pool are decent assets for the bull run. Moreover, the yield generated by this pool is substantial due to the highly volatile nature of the market in recent times, especially the meme market. Let’s look at the details:
- Earn 300% - 400 APY on average on Base; impermanent loss is possible
- If you are bullish on both MOG and ETH, this vault provides maximum exposure to these markets.
- If the general market performs well, the upside is both price appreciation and substantial yield on top.
- However, if the prices of underlying assets underperform, potential losses are possible despite the high yield, though they will be less than simply holding these assets due to yield.
- We believe the risk-reward ratio is quite compelling here due to the upside potential of MOG and the yield on top
- However, if you are a big fan of POPCAT and into Solana, here is another yield report where we covered exciting opportunities on POPCAT
- Go to the Beefy Vault
- Enter the vault with any asset, but having MOG and/or ETH is beneficial because of the potential slippage when entering with external assets.
- Autocompound and let the time work for you.
- Happy farming
USDz - ETH (Base)
USDz is an RWA-backed stablecoin built by Anzem, which uses a diversified portfolio of private credit assets to back USDz. We covered Anzem as an airdrop opportunity here. Here are the details on how to farm this opportunity:- Earn over 114% APY on average on Base; impermanent loss is possible
- This is a slightly more conservative strategy compared to the MOG-WETH strategy.
- ETH is a blue cheap asset and its downside is further protected with USDz being a stablecoin.
- The upside to the market remains that ETH is performing well; the returns will be further boosted with yield accumulated over time.
- However, the concept of backing the stablecoin with private credit, even with licensed partners, has some inherent risks.
- Go to the Beefy Vault
- Enter the vault with any asset, but having USDz and/or ETH is beneficial because of the potential slippage when entering with external assets.
- Autocompound and let the time work for you.
- Happy farming
PYUSD - JitoSOL (Solana)
This is similar to the USDz-ETH yield, but instead of earning yield on ETH, we are earning yield on SOL. PYUSD is a stablecoin issued by PayPal; therefore, it can be considered relatively safe since PayPal is a well-established and regulated company.Here are the details:
- Earn over 99% APY (plus incentives in JTO, PYUSD and staking yield on JitoSOL) on average on Solana; impermanent loss is possible.
- PYUSD has recently been rolling out its Solana strategy, so some huge incentives are being paid. They won’t last forever, so if you are bullish on SOL, it's time to seize the opportunity.
- This is a slightly more conservative strategy than the MOG-WETH strategy.
- SOL is a blue cheap asset, and its downside is further protected by PYUSD being a stablecoin and by additional incentives paid in JTO and PYUSD.
- You can enter the farm only with PYUSD or JitoSOL
- Therefore, go to Jupiter and swap some SOL to JitoSOL
- Now, go to Kamino and connect your wallet.
- Enter the pool with JitoSOL and/or PYUSD
- Autocompound and let the time work for you.
- Happy farming
Stablecoin yields
In contrast with volatile yields, farming yield with stablecoins generally is not subject to impermanent loss. This makes these farms very attractive for growing a fat stack of cash to protect your portfolio from volatility and use it as dry powder for market corrections. Here are some attractive yields on stablecoins:USD+ (Base)
USD+ is a dollar-pegged stablecoin by Overnight Finance, an asset management protocol offering passive yield products based on delta-neutral strategies for conservative stablecoin investors.- Earn over 30% APY on Base with no Impermanent Loss.
- Extra finance has leveraged yield farming; for that, it also needs someone to lend their assets.
- The yield comes from interest paid by all leveraged yield farmers; Yield drops when there are leverage shakeouts/corrections.
- USD+ is not yet a battle-tested stablecoin; however, it’s been in the market for quite some time, recovering from multiple externalities, such as the hack of underlying protocols used for hedging.
- Overall, it is a relatively safe farm, though we would suggest exercising some caution.
- Go to Aerodrome and buy some USD+ on Base
- Go to Extra Finance, search for USD+ and lend your stables
- Autocompound and let the time work for you.
- Happy farming
USDz (Base)
As we mentioned earlier, USDz is an RWA-backed stablecoin built by Anzem, which uses a diversified portfolio of private credit assets to back USDz.Anzen's private credit assets are carefully selected and secured by qualified KYC-compliant investors through rigorous underwriting. These assets are typically associated with reliable revenue streams and are expected to maintain their value even during periods of market volatility. This diversified portfolio helps to minimise the impact of a particular asset's performance on the overall portfolio, creating a balanced risk profile. The stablecoin backing concept is new and, therefore, needs to proceed with caution. However, right now, yields are extra attractive:
- Earn over 30% APY on Base with no Impermanent Loss.
- On top of yield, users will also earn points for potential future airdrops from Anzem.
- The yield comes from interest paid by all leveraged yield farmers; Yield drops when leverage shakeouts/corrections occur.
- USDz is not yet a battle-tested stablecoin; therefore, some caution is recommended.
- Go to Aerodrome and buy some USDz on Base
- Go to ExtraFinance Lend, search for USDz and lend your stables
- Autocompound, collect points for airdrop and let the time work for you.
- Happy farming
Yield farming risks
Yield farming offers the potential for attractive returns, but it is not without its risks. Here's a quick recap of the main yield risks.- Variable APY: Earnings can vary greatly due to changing market conditions. Stick to well-known assets like ETH or SOL.
- Slippage: Differences in expected and actual trade prices can lead to losses. Always check slippage rates before trading.
- Market Risks: Asset values can drop with market downturns, impacting returns.
- Smart Contract Risks: Bugs or vulnerabilities in smart contracts can cause losses despite strong security measures.
- Impermanent loss: The yields from yield farming can fluctuate significantly in dollar terms due to the influence of market volatility on the prices of assets in the liquidity pool. This is known as impermanent loss, which occurs when the price of the assets in the pool changes relative to when they were deposited.
Cryptonary’s take
Every investor's journey is unique. There is no right or wrong path as long as you achieve your end goal of making more money. Thus, successful portfolio management often requires a blend of strategies and disciplined execution.Yield farming offers a promising avenue for generating cash flow and mitigating portfolio volatility.
While yield farming is not as sensationalised as it once was, the financial benefits remain compelling, especially in times of high market volatility.
Happy farming!
Cryptonary, OUT!
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