Crypto winter is upon us, and chances are that crypto markets will continue to trade sideways and experience bearish momentum for the next several months. One of the best ways to hedge against the downtrend is to convert your crypto holdings into stablecoins and lock them up for guaranteed APY on yield farming platforms. This article lists the top three stablecoin yield farming platforms to help you weather this crypto winter.
#3 spirit
Aave is one of the most popular stablecoin yield farming platforms out there. With over $14 billion in tied value and a market cap of over $3.4 billion, Aave is the safest platform on this list.
Aave also has a native token called AAVE. This token incentivizes users to use the platform by offering discounts on fees, voting rights for governance, and a variety of other benefits.
When it comes to yield farming, it’s not surprising that multiple pools of liquidity work together. Looking at the assets available on Aave, the highest yielding stablecoin is the Gemini Dollar, offering an APY of 6.98% on deposits and an APY of 9.69% on loans.
#2 Venus
Venus describes itself as a decentralized marketplace for lenders and borrowers with borderless stablecoins. In other words, Venus enables the world’s first decentralized stablecoin called VAI. It is built and powered by the Binance Smart Chain without the need for central control.
XVS is the cryptocurrency that absorbs the price volatility of the crypto market, which is why it has a volatile price.
How other stablecoins work, VAI allows you to earn interest on funds held within the protocol. It has very competitive prices for stablecoin deposits. Currently, users can get 7% APY on USDC and 6.56% APY on BUSD.
Users can connect their MetaMask wallets to the Venus dApp and activate a variety of assets as collateral to start earning interest immediately. Venus is a relatively new platform but has a fairly substantial offering worth over $3.1 billion.
#1 Harvest
Harvest is a relatively new yield farming platform that’s one of the more lucrative options on this list. It consists of an international cooperative of farmers pooling resources to generate DeFi yields.
When farmers deposit, Harvest automatically farms the highest yields using the latest techniques. Pooling deposits allows the platform to offer some of the most competitive rates in crypto.
Harvest has over $286 million in assets locked on its platform at the time of writing. Although the TVL is relatively low compared to Aave, Harvest currently offers the highest APY for stablecoins, including 7.93% for USDC deposits and 6.18% for USDT deposits.
Final Thoughts
Earning interest via stablecoin deposits is the least risky way to earn passive income from your crypto. If you want to bet on a bearish crypto market in the next few months, convert your assets into a stablecoin like USDC, BUSD or USDT and stake it through one of the platforms above.
On the other hand, if you’re not entirely pessimistic about crypto but still want to take advantage of yield farming and generate passive income from your crypto holdings, consider traditional liquidity farming with an exchange like Uniswap or PancakeSwap to grow your to maximize returns. However, remember that market fluctuations will significantly affect your APY.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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