While most yield aggregators work almost identically, the biggest differences between them are the blockchains they support and the DeFi protocols they use. First, most DeFi yield aggregators support etherbut many are there polygon as well as other layer 2 networks. Therefore, it is important to ensure that the yield optimization platform you are using supports the blockchain your assets reside on.
Second, each yield aggregator uses different DeFi protocols to generate yields. These mainly include liquidity pools on DEXs like balancerbut some yield aggregators also generate yields from crypto lending protocols such as Spirit. Another way to optimize yield is to leverage DeFi protocol tokens to increase rewards for liquidity providers – staking CRV governance tokens is a good example of this. Each DeFi aggregator uses a different combination of yield optimization tactics, resulting in different APY rates for staking the same asset on different platforms.
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Yearn Finance is one of the top yield aggregator platforms on Ethereum, which is also used on phantom and arbitrage. This platform formulates an optimized return strategy for each asset using a combination of liquidity pool deployment, crypto lending protocols, and other revenue-generating protocols such as Use of Ethereum 2.0. This means Yearn Finance is able to deliver the best possible crypto return rates for any asset across multiple DeFi protocols.
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