Cryptocurrency enthusiasts are always looking for new revenue opportunities in decentralized finance. Surprisingly, there are some attractive options on the market, provided you don’t mind a low TVL. It is still possible to earn over 100% APY today, although these rates will likely fluctuate in the coming weeks and months.
Earn over 100% APY with DeFi
It’s always a bit risky looking for high-yield decentralized funding opportunities. Achieving such high returns is often unsustainable and traditionally involves dealing with volatile assets. Additionally, one may need to rely on DeFi offshoot protocols on-chain that one would otherwise not leverage. However, there is good money to be made for those willing to take on these challenges.
The NOTE-WCANTO pair on Canto Lending (Canto chain) offers a 30-day moving average APY of over 300%. Today’s rate is slightly lower at 273%, which is still relatively impressive. The downside is how users have to leverage two volatile crypto assets in WCANTO and NOTE. If you go for this liquidity pair, there is a huge risk of temporary losses. Still, those willing to earn plenty of passive income require a higher level of risk tolerance.
Potentially more attractive is the WETH-USDC pair (0.05% fee) on Uniswap V3. Not the regular one, but the one on Arbitrum, one of the upcoming blockchains for decentralized finance. Users can expect a 30-day APY from 116%, although this may not be sustainable for too long. The base APY is 46%, which is still more than appealing. Furthermore, with a choppy 0.54% loss over the past week, it is a viable option assuming Ethereum (and WETH) don’t crater.
Uniswap V3 users on the Ethereum chain can check out the LINK-WETH (0.3% fee) option. It’s a decent yield farming option with an average APY of 101%. It also has a low IL of 0.11%, making it a worthwhile option. Its base APY is higher than WETH-USDC at 64.71%, appealing to all yield farming enthusiasts.
Other yield farming options
What all of these pools have in common is that they represent a relatively low total locked value. Values range from $11.16 million to $22.43 million. That means there’s plenty of room for yield farmers to get in on the action. However, as more people explore these pools, the APY gets lower. Maintaining a low TVL isn’t ideal either, but few people will object.
For those watching higher TVL pools, Options like USDC-WETH on Uniswap V3 (0.05% fee or 0.3% fee) are also possible. They offer an APY of 75.84% and 52.1%, respectively. Those returns are still better than holding funds in a bank account and incorporating a reputable stablecoin into USDC. Their total temporary loss this week is manageable at 0.53%, although it would have been better to hold on to assets rather than farm earnings.
None of the information on this website constitutes investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial loss caused by actions taken based on information provided on this website by its authors or clients. Always do your research before making any financial commitments, especially on third-party appraisals, pre-sales, and other opportunities.
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