Defi High Yields 2023
If you are looking for ways to earn passive income from crypto, you might want to consider investing in some of the best DeFi projects that offer high yields. DeFi, or decentralized finance, is a fast-growing sector of the crypto industry that aims to provide various financial services without intermediaries, such as lending, borrowing, trading, insurance, and more.
DeFi projects are powered by smart contracts, which are self-executing agreements that run on blockchain networks. Smart contracts enable users to interact with DeFi protocols directly from their wallets without relying on third parties or centralized platforms. This way, users can enjoy more security, transparency, efficiency, and control over their funds.
However, not all DeFi projects are created equal. Some of them offer higher returns than others, depending on various factors such as risk, liquidity, demand, and innovation. In this article, we will explore some of the best DeFi projects that offer high yields in 2023, based on their current performance and future potential.
The state of DeFi crypto investments in 2023
DeFi has been one of the most explosive trends in crypto in the past few years. According to DeFi Llama, a website that tracks the total value locked (TVL) in various DeFi protocols, the DeFi sector has grown from less than $1 billion in January 2020 to over $200 billion in December 2022. This shows the increasing popularity and adoption of DeFi among crypto users and investors.
One of the main drivers of DeFi growth is the demand for yield farming, which is a way of earning rewards by providing liquidity to DeFi protocols. Yield farming involves depositing crypto assets into pools or vaults that are used by DeFi protocols to facilitate lending, borrowing, trading, or other functions. In return, users receive interest payments or governance tokens that can appreciate in value or be staked for more rewards.
Yield farming can be very lucrative, especially for early adopters who can take advantage of high interest rates and token incentives. However, yield farming also comes with risks, such as smart contract bugs, hacks, market volatility, impermanent loss, and regulatory uncertainty. Therefore, it is important to do your own research and due diligence before investing in any DeFi project.
Great DeFi projects with high yields in 2023
Here are some really great DeFi projects that offer high yields in 2023, based on their current performance and future potential. Note that these projects are not ranked in any particular order and that the yields may vary depending on market conditions and protocol updates.
If you are looking for some of the best Defi projects to earn high yields in 2023, you have come to the right place. In this article, I will share with you a list of five Defi projects that offer attractive returns on your crypto investments. These projects are based on different blockchains and use different mechanisms to reward their users. But they all have one thing in common: they are innovative, secure, and profitable.
Here are the five Defi projects that you should check out in 2023:
1. vAMM-VELO/USDC on Velodrome.finance (Optimism)
Velodrome is a decentralized exchange (DEX) that leverages the power of virtual automated market makers (vAMMs) to provide fast and low-cost trading. Velodrome is built on Optimism, a layer 2 scaling solution for Ethereum that enables instant transactions and minimal fees. By depositing vAMM-VELO/USDC liquidity pool tokens on Velodrome, you can earn high yields in the form of VELO tokens, the native token of the platform. VELO tokens can be used for governance, staking, and fee discounts. According to Velodrome’s website, the current annual percentage yield (APY) for vAMM-VELO/USDC is over 100%.
You can learn more about Velodrome and how to provide liquidity here: https://velodrome.finance/
TVL: $5,444.350
APR: 70,24%
2. GLP staking on GMX.io (Arbitrum)
GMX is a DEX that offers leveraged trading and perpetual contracts for various crypto assets. GMX is also built on Arbitrum, another layer 2 scaling solution for Ethereum that improves speed and efficiency. By staking GLP tokens on GMX, you can earn high yields in the form of GMX tokens, the governance token of the platform. GMX tokens can be used to vote on protocol parameters, access exclusive features, and share in the platform’s revenue. According to GMX’s website, the current APY for GLP staking is over 28% compounding weekly.
You can learn more about GMX and how to stake GLP here: https://gmx.io/
TVL: $517,609,457
APR: 25.5%
3. Joe/USDC on Traderjoexyz.com (Avalanche)
Trader Joe is a DEX that offers fast and cheap trading, lending, and borrowing on Avalanche, a blockchain that supports smart contracts and interoperability. By providing liquidity to the Joe/USDC pool on Trader Joe, you can earn high yields in the form of JOE tokens, the utility token of the platform. JOE tokens can be used for governance, farming, and fee discounts. According to Trader Joe’s website, the current APY for Joe/USDC is over 100% compounding daily.
You can learn more about Trader Joe and how to provide liquidity here: https://www.traderjoexyz.com/
TVL: $703,093
APR: 102%
4. 20WETH-80BAL/tetuBAL on Balancer.fi (Polygon)
Balancer is a DEX that allows you to create custom liquidity pools with up to eight tokens and flexible weights. Balancer is integrated with Polygon, a layer 2 scaling solution for Ethereum that reduces gas costs and latency. By providing liquidity to the 20WETH-80BAL/tetuBAL pool on Balancer, you can earn high yields in the form of BAL tokens, the governance token of Balancer, and tetuBAL tokens, a special reward token for Polygon users. BAL and tetuBAL tokens can be used for governance, staking, and fee discounts. According to Balancer’s website, the current APY for 20WETH-80BAL/tetuBAL is over 170%.
You can learn more about Balancer and how to provide liquidity here: https://polygon.balancer.fi/
TVL: $7,555,242
APR: 108.97%
5. FTM-DEUS on Spooky.fi (Fantom Opera)
Spooky is a DEX that offers fast and cheap trading on Fantom Opera, a blockchain that supports smart contracts and high throughput. By providing liquidity to the FTM-DEUS pool on Spooky, you can earn high yields in the form of BOO tokens, the native token of Spooky. BOO tokens can be used for governance, staking, and fee discounts. According to Spooky’s website, the current APY for FTM-DEUS is over 70%.
You can learn more about Spooky and how to provide liquidity here: https://spooky.fi
TVL: $891,649
APR: 42,7%