Vladislav Sopov
Pseudonymous DeFi researcher Hansolar analyzed a monstrous amount of data from the DefiLlama tracker and selected the most impressive APYs for safe yield farming
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Contents
- I’m looking for the best and safest yield on DefiLlama
- Sad but true: no attractive yield farming outside the premier league
Cryptocurrency expert @hansolar21 on Twitter analyzed data on safety, profitability and sustainability of 5,510 yield farming instruments (pools of liquidity) across all major smart contract platforms. Here are his top picks.
I’m looking for the best and safest yield on DefiLlama
According to a thread shared on Twitter yesterday, October 28, 2022 by @hansolar21 about ML instruments and big data analysis tools, he scanned thousands of logs designed for “yield farming” (to get rewards for the provision of cryptocurrency liquidity for on-chain). exchange systems). The data was provided via the API of top-rated DeFi tracker DefiLlama.
He decided to experiment with a hypothetical deposit of $100,000: therefore, only sustainable pools with a total locked value (TVL) greater than $400,000 were included in the analysis.
Out of the initial pool of 5,510 logs, only 327 were “confident,” offering annualized returns in excess of 5% (which is easily found in risk-free centralized and decentralized passive income machines). Only 130 logs were adequately sized to currently inject $100,000.
Most of the interesting opportunities for @hansolar21 run on the Ethereum (ETH) blockchain: Badger DAO, SushiSwap, Angle, Goldfinch protocols; while on Ethereum’s L2, optimism options with the LYRA token also looked impressive to him.
Meanwhile, on-chain derivatives platform GMX has been highlighted by the analyst as a top pick, with both arbitrum and avalanche-based pools from GMX bidding 15-20% on the GLP token.
Sad but true: no attractive yield farming outside the premier league
On Polygon, veteran DeFi Kyber Network offered the best rates for secure yield farming, while multi-protocol platform Tetu offers a 20% yield on the BTC-USDC pool. Friction Labs, Frakt and Credix Finance were the market leaders in Solana’s segment.
Avalanche’s oldest DeFi trader Joe also looks good on the AVAX liquidity expert. Other opportunities seemed either too risky or too untenable:
Everything else is either short-lived, unstable, too low, too small, threateningly robust, not really yielding
He added that other overhyped smart contract platforms — including the likes of BSC, Polkadot, Fantom, Cronos, Karura, Kusama, Moonriver, and Ontology — look disappointing when it comes to alternatives to yield farming.
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