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Yield Farming Platforms in 2021 (And where to learn about every new DEX)

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How to navigate the DeFi space to maximize your farming yields, plus resources to learn about the new DEXes early.
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Until DeFi came around, our only way to generate income from our crypto holdings was either trading or lending to traders.

DeFi and PoS changed that…Kind of.

  • Yield farming (DeFi Staking) is just a crypto jargon for automated lending to traders.
  • Staking (Network Staking) is just a crypto jargon for automated lending to the whole network.

Neither farming nor staking are super groundbreakingly new as concepts.

But now that so many services around staking and farming developed, it is quite easy for everyone to earn some extra income from their crypto.

In this blog we’ll focus on yield farming in 2021. We’ll list a couple of the currently popular platforms here and explain how to navigate the space to maximize your profits.

Why Yield Farming pays so much

Yield farming is the new DeFi type of lending where altcoiners have been generating crazy returns for the past year or so.

  • In yield farming, you lend your money to a trading platform with automated market-making (AMM)
  • DeFi trading platforms rely on their liquidity being crowd-sourced like this.
  • Because of that reliance they will pay a lot to get their liquidity in. Without it, there could be no trading.
  • The more popular the platform gets, the more liquidity it demands, the more you can earn from providing it.

Clearly, if you want to keep earning as much as you can from your farming, you need to keep track of which platforms people currently trade on. Your opportunity is on any platform where traders want to trade and where there is not enough liquidity to meet that demand.

DeFi traders move platforms a lot

Traders switch between DeFi platforms pretty easily: On decentralized exchanges, you don’t even need to make an account. You simply plug in a wallet like Metamask and trade directly from it. Once you stop liking your exchange, you do a quick skim through Reddit to see where else people are trading, and go plug your wallet to the new place.

Why will an altcoin trader switch exchanges?

Usually it’s one of the two following reasons:

  1. The fees are too high and they want to move from ETH to the Binance Smart Chain (BSC)
  2. The shitcoin of the week is not yet listed on their old exchange and they want to trade it

If you are a DeFi liquidity provider, you will need to know where the traders flock and follow them.

Alternatively, you need to make sure they hear about the exchange you work on and get curious. That is why there are so many DeFi shills everywhere these days.

New decentralized exchanges crop up all the time - just search for Uniswap clone, Sushiswap clone, Yearn finance clone…Anyone can make their own clone and try to get the traders in.

At the time of writing, this is a few places traders talk about the most:

DEX Chain What draws the traders in
PancakeSwap Binance Smart Chain All the new DeFi tokens, lottery and games
BakerySwap Binance Smart Chain DeFi tokens and NFTs trading
Curve.Finance Ethereum Low fees and minimum slippage
SushiSwap Ethereum Network effect at this point

All the DEX platforms listed above can be found at CoinMarketCap’s Yield comparison page:

You can use them as a starting point, but do not expect them to last.

There are already clones and alternatives springing up:

DEX Chain What draws the traders in
CoinSwap Binance Smart Chain Easy staking and farming
1inch Ethereum or Binance Chain Aggregator of large amount of DeFi markets, either on ETH or on BSC

Maybe one day the DeFi market will mature and vast majority of people will have the same go-to DEX for yield farming. But for now, your yield will change wildly from platform to platform.

We’ll end this blog with a couple of small reddit forums where DeFi shills post about the latest NFTs and DEXes:

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