We recently updated ours Token Ratings. Reading through it will give you the Bankless team’s thoughts on which tokens to buy, sell and hold (for entertainment purposes only 😊).
The first token is available to everyone, but you must Upgrade to Bankless Premium to access the rest.
dear bankless nation,
There is a market demand for cross-chain bridges in DeFi and that means a great opportunity to earn some trading fees by signing up as a liquidity provider.
Today’s newsletter highlights opportunities in four cross-chain protocols: Hop, Synapse, Across, and StarGate. Look at her!
– Bankless team
👉 Kraken has been at the forefront of the blockchain revolution since 2011 ✨
Author: Lucas Campbell, Web3 Lead at Bankless & Genesis Member of Bankless DAO
Graphic by Logan Craig
The future is multi-chain.
Whether you think it will happen with multiple L1s like Ethereum, cosmos And solana, or a roll up centric futurethere is an opportunity to make money by fueling these cross-chain swaps.
The main way to do this is by providing liquidity to each of the leading bridge aggregators – like Hop, Synapse, and Across. In return, you receive a trading fee for your service.
Better still – ours prediction was correct – Most cross-chain bridges today launched a token with a yield farming program that gives all LPs a nice yield boost.
Are you interested in taking advantage of this opportunity?
This article highlights some of the best yields from cross-chain bridges currently available on the market.
-
Networks: Ethereum, Arbitrum, Optimism, Gnosis Chain, Polygon
-
Financial assets: ETH, USDC, USDT, DAI, MATIC, SNX
-
Income: 8 – 12% annual interest
The first big bridge is Hop.
Built on a rollup token bridge, hop exchange allows users to transfer assets cross-chain between major Ethereum Layer 2s and sidechains.
The protocol uses so-called market makers bonders, who earn fees for refueling the liquidity behind these swaps. The bridge currently has around $66 million in locked value and has facilitated billions of dollars in remittances.
After the launch of the HOP token, the protocol implemented a liquidity mining program, issuing 2.2 million HOP each month on ETH, USDC, DAI, and USDT liquidity pools. The allocation of tokens is determined by the volume of each bridge, which can be changed through governance.
Interestingly, Hop currently offers a few pools with multi-asset rewards. The first is the SNX bridge, which is funded with both HOP and OP and offers a 28% annual return on LPs.
The other two notable pools are the DAI and USDT Gnosis pools, where LPs from these stablecoin pools earn both HOP and GNO as part of their rewards program.
🤑 Start earning on Hop Protocol
-
Networks: Ethereum, Arbitrum, Optimism, Polygon, BNB Chain, Canto, Avalanche
-
Financial assets: ETH, USDC, USDT, DAI, BUSD, NOTE
-
Income: 5 – 22% annual interest
Synapse (SYN) is described as a cross-chain messaging protocol.
The Synapse Bridge allows users to switch between a range of L1 and L2 assets using an AMM. Unlike Hop Protocol, Synapse extends beyond Ethereum and its encompassing chains, allowing exchanges between alternative Layer 1s like Canto, Avalanche and Harmony, in addition to the prominent Ethereum L2s like Arbitrum and Optimism.
However, similar to Hop, Synapse also has the SYN token, which is distributed across most pools via an extensive yield farming program.
As you can see below, there are a handful of lucrative opportunities to take advantage of, with returns of up to 22% for the scene’s hottest new L1: Canto.
🤑 Earn with the Synapse protocol
octopusthe safe, transparent, reliable exchange of digital assets, makes it easy to buy 200+ cryptocurrencies instantly with fast, flexible financing options. Your account is protected 24/7 with industry-leading security and award-winning client engagement.
👉 Visit Kraken.com to learn more and start your experience today.
-
Networks: Ethereum, Arbitrum, Optimism, Gnosis Chain, Polygon
-
Financial assets: ETH, USDC, USDT, DAI, WBTC
-
Income: 4.5 – 17% annual interest
Across Protocol has become a fair competitor in the cross-chain landscape, recently surpassing over $1.3 billion in total transferred value.
The bridge built by the UMA Protocol team works by incentivizing LPs to provide users on the other chain with short-term loans that are repaid after two hours from a liquidity pool on L1.
After the token launch in November, the protocol now offers some yield farming opportunities for the ACX token. Across’s yield farming program is distinctive in that it gives LPs a reward multiplier based on the time the user has provided the liquidity.
Users can achieve the maximum APY listed below by providing liquidity on the log for more than 100 days.
🤑 Start earning on Across Protocol
-
Networks: Ethereum, Avalanche, BNB Chain, Polygon, Arbitrum, Optimism, Metis
-
Financial assets: ETH, USDC, USDT, DAI, FRAX, LUSD
-
Income: 3-10% APY
The final bridge we will discuss is Stargate, built upon it level 0′s omnichain technology.
The protocol currently has $381M in TVL with its token STG trading with a market cap of $83M and an FDV of $600M. Similar to the bridges above, the protocol taps into its native token to increase yields for potential LPs.
Most pools on the platform include these STG premiums – up to 10% APY on the Metis USDT pool and 9.9% APY on the FRAX Optimism pool.
🤑 Start earning at Stargate Finance
There are many opportunities in the cryptoverse to earn high-yield APYs by providing liquidity for cross-chain swaps.
The recent surge in activity on Cosmos chains like Canto and Ethereum Layer 2s allows LPs to capitalize on these value streams.
People bridge chains all the time.
This guide serves as a foundation to start earning.
You can win the multi-chain future by providing the picks and shovels (read: liquidity) for these value streams. Take a look at the landscape and see if any of these are the right opponent for you!
Subscribe to something bankless. $22 per month. Contains Access to the archive, Inner circle & badge.
No financial or tax advice. This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets or make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
disclosure. From time to time I may include links to products I use in this newsletter. I may receive a commission if you make a purchase through one of these links. Additionally, the bankless scribes hold crypto assets. See ours Investment information here.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.