As we continue to watch the growth of exciting new financial primitives, we’re beginning to witness an ever-growing trend of users being able to share in the upside of a protocol’s growth. Whether it’s something as simple as lending cryptocurrencies on Compound to something more complex like participating in liquidation auctions on Maker, it’s evident that DeFi is unlocking a suite of new and exciting passive income opportunities.
This page will keep track of various yield farming opportunities – all of which provide users such as yourself with the ability to farm yield on your favorite DeFi tokens.
The best way to stay up to date with new farming opportunities is by keeping an eye on CoinGecko’s Farm tab. These farms are displayed in order of TVL, however this does not necessarily guarantee safety.
Please note that as with any investment opportunity, there are inherent risks. When necessary, we recommend exploring products like Nexus Mutual for different ways to ensure your positions in the case of a black swan event.
DeFi Yield Farming Tutorials in 2021
Curve CRV Liquidity Mining
Platforms Used: Curve, Synthetix, Ren Protocol, yEarn
Maximize your CRV earnings by leveraging a suite of Curve liquidity gauges and the Curve DAO.
- Deposit collateral into any of Curve’s liquidity pools
- For those looking to participate in a Bitcoin pool, use Ren Protocol to bring BTC to Ethereum
- Stake your liquidity token via a Curve gauge
- Claim CRV and lock it via the Curve DAO for a multiplier on your liquidity
- Be on the lookout for added incentives like SNX and REN for the sUSD and sBTC pool.
Compound COMP Yield Farming
- Deposit ETH through Oasis Borrow (Maker) to open a Vault and receive DAI
- Open a DeFi Smart Account on InstaDapp and deposit DAI
- Transfer newly deposited Dai to the Compound section of InstaDapp
- Utilize InstaDapp’s “Maximize COMP Earnings” feature to take a leveraged DAI position out against your DAI holdings
- Alternative: Supply DAI directly on Compound
- Note: When using the InstaDapp strategy, you have the potential to be liquidated if your collateralization falls below the minimum threshold. We recommend sticking to around a 60% ratio when using this strategy.
Balancer BAL Liquidity Mining
Platforms Used: Balancer
Earn BAL governance tokens by supplying capital to Balancer liquidity pools.
- Leverage this spreadsheet to see which pools will earn the most BAL based on their Total Factor with 1 being the highest factor possible.
- Visit https://pools.balancer.exchange/#/ to contribute capital to any of the aforementioned pools.
- Tip: We recommend Pools which mitigate impermanent loss. This includes pools that have a 1:1 peg, such as sETH/WETH, sBTC/WBTC and DAI/USDC.
SushiSwap SUSHI Liquidity Mining
Platforms Used: SushiSwap
Earn SUSHI governance tokens by providing liquidity to any of SushiSwap’s incentivized liquidity pools.
- Visit SushiSwap’s Menu of the Week to see which pools are being incentivized.
- Provide liquidity to any of the supported pools by connecting your wallet on sushi.com
- Stake LP tokens on SushiSwap in the respective pool to start collecting rewards
Platforms Used: yEarn, Curve
Earn yield by depositing tokens into a Yearn Vault.
- Deposit liquidity to Curve’s Y Pool to receive yCurve
- Stake yCurve on yEarn using the Vault interface.
Curve Bitcoin Yield Farming
Earn SNX, REN, BAL and CRV for providing liquidity to the sBTC Curvepool.
- Port Bitcoin to Ethereum using the Ren Bridge
- Deposit your newly acquired renBTC to the sBTC Curvepool.
- Stake your ySBTC tokens via Mintr in the LP Rewards section.
- Claim rewards in the form of SNX/REN Balancer Pool Tokens
- Withdraw SNX and/or REN rewards directly on Balancer.
KNC Staking Rewards Through KyberDAO
- Purchase KNC on a DEX like KyberSwap or Unsiwap
- Head to the Kyber Voting Dashboard and connect your web 3 wallet like MetaMask holding KNC
- Deposit KNC to enable it for voting
- Vote on proposals to earn a pro-rata share of ETH from each Epoch
- Optional: Delegate your KNC voting power to a Pool Master like the Kyber Community Pool to have them vote on your behalf.
mStable MTA Liquidity Mining
Earn MTA governance tokens for providing liquidity to the mUSD/USDC, mUSD/WETH or mUSD/MTA Balancer Pools
- Mint mUSD by depositing DAI, USDC, USDT and/or TUSD on mStable
- Supply an even amount of mUSD and USDC to this Balancer Pool
- Alternative: Stake mUSD through mStable Save to earn an attractive APY denominated in mUSD.
Ampleforth AMPL Liquidity Incentives
Earn AMPL stablecoins for providing liquidity to the AMPL/ETH Uniswap pool.
- Purchase AMPL on Uniswap
- Add an equal amount of liquidity to the AMPL/ETH Uniswap pool
- Stake your AMPL UNI tokens via Geyser
- Bonus: The longer you stake, the higher your Bonus Multiplier becomes. Stake for 3 months for 3x rewards
Aragon ANT Liquidity Incentives
Platforms Used: Aragon, Uniswap
Earn ANT rewards for providing liquidity to the ANT/ETH Uniswap pool.
- Purchase ANT on Uniswap
- Provide liquidity to the 50/50 ANT/ETH Uniswap V2 pool
- Stake your UNI tokens (representing your liquidity) via Aragon’s liquidity dashboard
Synthetix sUSD Liquidity Incentives
Synthetix SNX Staking Tutorial
Earn weekly SNX inflation by staking SNX via Mintr to mint sUSD. Please note that Synthetix requires 800% over-collateralization, so it’s recommended to start with a minimum amount of roughly 500 SNX to see any meaningful rewards.
Uniswap Liquidity Provider Tutorial
Earn a portion of Uniswap’s 0.3% trading fees on any ERC20 token pair by providing liquidity split 50% between ETH and 50% between the target ERC20 token.
Want to see your project listed here? Please reach out and tell us why we should cover your incentive program.
There are no minimum capital requirements to partake in any of these opportunities. With that being said, meaningful returns are largely earned with capital contributions starting from ~$1000 in value. You should also take into account the transaction (“gas”) costs of the strategy you wish to implement.
All of these opportunities are using highly reputable DeFi products. All smart contracts have been audited which largely mitigates risk. However, with any DeFi product, there is always a very small chance of loss – meaning that no user should use more capital than they would be willing to use.
Absolutely not. We’ve chosen to cover a suite of tutorials which we find easy enough to grasp as a non-technical user with low barriers to entry. This list will be updated over time to include more income opportunities which you should know about.