Top Yield Farms on Polygon
We’ve all been there: you’re looking for a way to make money, but you don’t know where to start. Luckily, there are a lot of options out there for earning crypto.
Whether you’re interested in mining or just want a passive income, here are some of the best crypto Yield Farms on Polygon.
What is Polygon?
Polygon is a blockchain-based ecosystem that aims to help users manage their crypto assets more effectively. It also provides them with the ability to earn more money through yield farming.
What is Yield Farming?
Yield farming is an investment strategy where an investor takes a percentage of the profits from a particular coin or token, instead of the entire sum. This gives investors access to high-risk investments without having to go through all of the effort associated with actually mining and selling cryptocurrencies themselves.
Polygon allows you to invest in multiple currencies simultaneously using a wallet address called “Polygon wallet”, which works on top of Ethereum. The native primary currency in Polygon is called MATIC ($MATIC). The most popular wallet is MetaMask. You can also use your Polygon as collateral for other investments to further increase your earning potential.
Considering the high prices of “gas” (as the cost of transactions on Ethereum is called) and the congestion of the Ethereum network, Polygon has lately become a viable option for Ethereum-based DeFi services.
Liquidity pools on Polygon
If you are a holder of cryptocurrency, one of the methods to make passive income on your idle bitcoin is to provide them into liquidity pools and get yields from these liquidity pools. This is one of the ways to earn passive income on your cryptocurrency. If you are a liquidity pool provider, you may profit from the transaction fee paid each time a bitcoin trade is made or borrowed.
An easy-to-understand example of a liquidity pool is provided by Uniswap:
Top Yield Farms on Polygon
Crypto Yield Farms can be a great way to earn passive income, but they are not without their risks.
Before you commit large amounts of cryptocurrency to a new farm, do your own research on the team’s background. If they have been involved in other projects, check out their previous work and make sure it is reputable. Additionally, it is important to look at the whitepaper to see what type of farm you will be investing in.
Ask yourself:
Who is managing this farm?
Are they qualified and experienced? Do they have a history of success? Do they have a proven track record that speaks to their ability to manage a successful crypto farm?
What is their plan for growth? How will they grow their crypto portfolio over time? What are their strategies for managing risk, both in terms of investment risk and operational risk (i.e., security)?
Generally speaking, indicators of a healthy liquidity pool include:
- The greater the farm’s Total Value Locked (TVL), the more secure it is.
- The longer the liquidity pool has been, the more secure it becomes.
- The greater the number of protocols built above the liquidity pool, the safer it is.
- The more staking pairs, the safer it is.
- High APYs indicate that the liquidity pool is relatively young and there are fewer participants to divide the pool’s rewards.
These are, in our view, some of the top Yield Farms on Polygon, considering APRs, APYs, TVL:
QuickSwap
QuickSwap seems to have the highest production of any farm on the Polygon network. When it comes to the Polygon network, QuickSwap is at the forefront as both a DEX and AMM. The original Uniswap, the most popular decentralized exchange (DEX) built on Ethereum, is the basis for this new project.
It has about $500 million in TVL and assets locked into its liquidity pools at now, and this sum is expected to expand as more adjustments are made to accommodate Polygon’s growing popularity. QuickSwap has been successful in attracting a substantial amount of volume and liquidity since it first went live in February 2021.
Liquidity providers on QuickSwap are rewarded with LP tokens and QUICK, the platform’s native currency. Access to many, diverse liquidity pools with competitive yield returns on a wide variety of market-leading and Polygon-based assets via a user-friendly interface that streamlines DeFi operations is provided.
Polycat Finance
Polycat is a hybrid yield optimizer (AMM and yield aggregator) built on the Polygon blockchain that focuses on long-term wealth creation and sustainability.
In order to stake and earn additional FISH tokens, users may either acquire FISH or stake already-held tokens in PolyCat Finance pools. When you deposit FISH, you may get an excellent APY. Also, when depositing QUICK, the native token of the QuickSwap network.’
The yield farm Polycat Finance has been operating at the top of Polygon’s list. Polygon’s Yield Aggregator is a financially viable, value-driven yield manager. Aave, SushiSwap, and QuickSwap are just a few examples of the external platforms that their yield farming solutions integrate, and the resulting respects are paid out in the firm’s own token, FISH.
Polygon’s DeFi vaults and farms hold around $240m in TVL in total, and with so many pools to choose from, customers have a lot of flexibility when it comes to where they store their funds and how much they make.
DFYN
One of Polygon’s highest-yielding farms is known as DFYN. The DeFi initiative is run by the community and provides access to an AMM exchange with cheap fees and the potential for high agricultural yields. DFYN’s goal is to construct a decentralized autonomous multi-node network (AMN) with nodes located across many blockchains. This will allow DFYN to function as a multi-chain AMM and facilitate the distribution of liquidity across different networks.
As a gasless exchange, DFYN just requires users to “sign” their transactions instead of exchanging actual gas. End-users are not charged any additional costs. Farms provide exceptionally competitive yield returns on leading assets, while Vaults enable users to lock up their DFYN tokens for a certain duration. Payments are made in DFYN, their native token. There is presently roughly $200 million in locked liquidity on their platform.
Curve Finance
Curve Finance is a blockchain-based finance platform that allows users to create their own financial instruments. The platform is designed to allow users to create and trade their own financial products, including bonds, stocks, and other investment vehicles. They can also use Curve Finance to create and trade their own cryptocurrencies.
Curve Finance uses the Ethereum blockchain as its foundation and processes transactions using Ether. The company has offices in the United States and India.
Curve Finance uses artificial intelligence to determine when to buy and sell stocks, bonds, or other securities. It’s not just about buying low and selling high—it’s about timing your buys and sells in such a way as to maximize profits and minimize losses over time.
Sushi
In addition to its DEX, SushiSwap now offers a variety of decentralized applications (dApps) for lending, staking, and yield farming. The DeFi market has flourished, but SushiSwap, a fork of Uniswap, has continued to develop and is now one of the most popular yield farms on Polygon, used by both newcomers and seasoned veterans of the cryptocurrency.
Early in May, they introduced their network connection with Polygon, and ever since then, Polygon’s TVL and volume on SushiSwap have skyrocketed.
Token Value (TVL) of Polygon assets on SushiSwap is nearing $1bn, with top assets like BTC, ETH, and Stablecoins offering high return benefits from their liquidity pools.
Aave
Lending and borrowing assets is Aave’s forte, and the protocol’s status as non-custodial makes it ideal for such transactions. Users of Aave may “lend” their assets to Aave in exchange for interest or “borrow” against them in order to finance other purchases.
Since Aave users may borrow and lend over 20 of the most popular Cryptocurrencies, the platform has attracted a sizable number of investors seeking to optimize profits on their holdings. Borrowers on Aave have the option of switching between fixed and variable interest rates, which is a perk for borrowers.
Yield farmers on Polygon utilize Aave often, making it the most popular DeFi platform on Polygon and securing around $8 billion in collective assets. Many DeFi investors are drawn to the Aave platform despite the high gas costs associated with interacting with smart contracts since their deposit and borrow returns for prominent Stablecoins and assets like BTC and ETH remain exceptionally competitive.
Uniswap
Uniswap is a decentralized exchange platform that allows users to trade Ethereum tokens without the need for an intermediary or counterparty. It provides a peer-to-peer trading platform with no order matching fees and low gas costs.
Uniswap is built on top of the Ethereum blockchain, which means that it’s powered by smart contracts. This makes it possible for users to trade directly from their wallets and avoid having to deposit funds onto an exchange. The team behind Uniswap has also created a protocol called Swap, which allows users to trade directly with one another without ever having to go through an intermediary.
The Uniswap platform boasts low fees and no commission charges, making it ideal for traders who want to save money while they buy or sell crypto assets.
Users can trade directly with each other on Uniswap using ETH as their currency, which means that there are no transaction fees involved in using the platform. The only fees users pay are those associated with Ethereum transactions, which are typically less than $0.01 USD per transaction.
Uniswap also supports atomic swaps between cryptocurrencies that share the same codebase (such as Bitcoin and Litecoin) as well as cross-chain swaps between different cryptocurrencies (such as Bitcoin and Ethereum).