Gone are the days of speculating on meme coins and governance. Now, the majority of the crypto investment community is looking for projects that generate sustainable revenue and add value to holders.
Here are the 10 best DeFi projects that can help you earn real returns.
What is Real Yield?
Real income is income resulting from the generation of real income. The real income alternative is the income generated by Ponzi schemes. Such yields are unsustainable and tend to die out a few hours to days after starting the yield farming protocol.
Most of the DeFi projects currently being launched target small but sustainable APYs. The impact of the ponzi defi farming protocols was that the huge natoive token issuances caused the token price to drop drastically as everyone rushed to sell them for a profit.
In real yield, log profits are shared between yield farmers. This way, when the protocol is profitable, users get a large APR. For example, GMX, the #1 perpetual DEX on Arbitrum, has been massively profitable since its inception. The protocol has held its APR at around 18% for the longest time, showing that it is a real yield DeFi protocol.
Aside from GMX, here are the 10 Best Real Yield Protocols to Try in 2023 and Beyond.
#1. umami finance
The umami finances
Umami Finance is at the forefront of the Real Yield Defi narrative and works closely with the GMX ecosystem. The protocol focuses on providing access to liquidity and uses a hybrid model to combine tested and regulatory complaint methods with trusted DeFi protocols. To that end, umami serves as a middle tier that connects capital providers with defi protocols.
A good example of this is Umami, which is introducing GLP vaults for USDC, ETH, and BTC. The APY earned by staking GLP is passed on to depositors while at the same time hedging market risk.
Umami will continue to deploy vaults by the end of H1 2023, aiming to reach over $1 billion TVL.
- Market Cap: $21,000,000
- Current TVL: $35,798.40
- Circulating supply: (not provided)
- Total supply: 1,000,000
- Current UMAMI price: $28.17
#2. Mugen Finance
Mugen Finance is a yield aggregator that also works on the GMX ecosystem and is built on top of Arbitrum. MGN, Mugen Finance’s native token, started with a total supply of 0.MGN. Users can get MGN via a bond curve with USDC. You deposit USDC into a smart contract and receive MGN in return. Bonding as a token generation event (TGE) is one of the best ways when a project wants to become as decentralized as possible in its tokenomics.
Mugen Finance uses Layer Zero technology – the Omnichain interoperability protocol. For umami, this means that over time it can become a revenue aggregator for logs on any chain, yes, even Bitcoin. Umami will use Layerzero technology to enable cross-chain swaps on their platform.
- Market Cap: $2,400,000
- Current TVL: $1,000,000+
- Circulating supply: 25,564
- Total supply: 25,564
- Current MGN price: $93.88
#3. Vela exchange
Vela Exchange is a decentralized exchange launched on Arbitrum. The rise of culprit DEXs has been fierce, but only those who mimic CEXs as closely as possible will make it. Vela Exchange does a perfect job for this purpose. CEXs are preferred, even if their security is questionable, as they offer position management and the ability to set Take Profits (TPs) and Stop Losses (SLs).
Vela worked hard to create the perfect Perp Dex. The platform has risk-managed tools including the above features. The exchange will support decentralized P2P and OTC trading as well as spot and futures trading.
Additionally, when holders of DXP (soon to be VELA) provide liquidity on the exchange, they receive VLP tokens and can earn 50% of the fees generated by the protocol. Users can also stake VLP and earn an additional 10% APR on their stake in the form of eVELA tokens.
- Market Cap: $5,486,949
- Circulating supply: 6,840,767
- Total supply: 7,000,000
- Max Stock: 100,000,000
- Current DXP price: $0.8021
#4. Unipilot
Unipilot is a liquidity optimizer for Uniswap LPs. To understand how Unipilot works, you must first understand how the new Uniswap V3 concentrated liquidity program works.
Concentrated liquidity allows users to provide liquidity around a specific set price. For example, you can provide liquidity to the ETH-USDC pool between $1,200 and $1,400 for ETH.
This means that you will not earn any fees if the price of ETH goes below or exceeds this price range, making it more efficient compared to the old liquidity delivery method. If the price moves outside your range, you need to adjust your range – which costs time and money (in the form of transaction fees).
Unipilot offers to manage your liquidity for you. Those using PILOT, Unipilot’s native token, earn 6% APR from the protocol’s revenue share. As TVL grows, this amount will increase.
- Market Cap: $3,200,000
- Current TVL: $2,223,341
- Circulating supply: 1,190,326
- Total supply: 10,628,432
- Current PILOT price: $2.78
#5. Use Inu Finance
LeverageInu is a meme finance project that has been the talk of the town as a first mover on the Arbitrum blockchain. Leverage Inu Finance is a social passive trading protocol that offers its members real returns from the profits generated through the protocols. The protocol is powered by LEVI, the native token. So far they have distributed $1,300 to about 500 members (at the time of distribution).
LeverageInu works by using fees accrued by Uniswap LP and using the fees to invest in GLP and earn fees from GMX. 20% of the fees are also used to encourage trading on platforms like GMX, Buffer Finance and soon Vela Exchange.
From the last distribution, the annual percentage rate is 3%. However, this can increase drastically as the team continues to build the treasury and the token continues to be traded on Uniswap.
- Market Cap: $567,000
- Stock in circulation: 970,000
- Total stock: 970,000
- Current LEVI price: $0.5677
Vincent Munene is a freelance writer and a huge blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return he likes to educate people and update them on everything blockchain related. He is a biochemist by profession and also enjoys playing the piano.
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