Understanding CeFi, DeFi & Yield Farming - Part 6
Hello everyone, hope you all are doing good? I'm back with the Part 5 of this amazing series, Understanding CeFi, DeFi & Yield Farming. If you haven't read the Part 1, Part 2, Part 3, Part 4 and Part 5, I strongly suggest you that by clicking here for Part 1, here for Part 2, here for Part 3, here for Part 4 and here for Part 5. In today's article we would be looking at my best 2 yield farming platform and why I choose them.
There are many good and very lucrative Yield Farming platforms in the world today, because it is becoming one of the best investment for investors right now, as over a whopping $50 billion worth of crypto tokens are locked in various platforms. Instead of earning less than 1% annuanlly from your deposits in banks, you could be making over 40 - 200% annually from Yield Farming.
Different platforms provides different APR, and as an investor, you only look out for three things before investing into a Yield Farming platforms, their APR rates, Probability of Impermanent Loss and Stability. Based on these three factors, here are my two top Yield Farming platforms right now;
- Venus
- dForce
Venus
Venus is a decentralized lending and borrowing platform built on Binance Smart Chain. Venus is currently ranked as the largest protocols on Binance Smart Chain, as it offers a superb lending and borrowing solution to it's users who borrow against collaterals and also lend their tokens in order to earn rewards.
Venus offers very fast and speedy transactions, very low cost on transactions fees, and as well as, a huge pool of wrapped tokens and liquidity. Users can easily lend their assets and earn cool interest and can then use their interest earned as collateral to borrow other assets.
Venus is truly an amazing platform, as it is known to be very stable and secured from hackers. It's liquidity pool are known to never be risky i.e there's zero chances of suffering impermanent loss. Lastly, it offers good APR rates with it's highest APR rate to be 22.95% and it's second highest to be 14.62%. It is quite rare to have platform that ensures little or no chance of suffering Impermanent loss to have this amazing high APR rates.
dForce
dForce is a decentralized lending and borrowing platform that is built on both Ethereum Chain and Binance Smart Chain. dForce lost it's credibility a while back, when it was hacked of around $25 million. But I believe the best platforms are the ones that have suffered before because they won't want to repeat same mistake ever again, making them stronger and more reliable. The team behind this platform is just out of this world. The team is a combination of crypto veterans and professionals from Standard Chartered Bank, CitiBank, Goldman Sachs and others. It is also backed by notable investors from China Merchants Bank International (CMBI), Multicoin Capital, as well as Huobi Capital.
dForce offers it's users it's native token, dForce whenever they provide liquidity. The token seems to have a very bright future, so it is a very awesome way to earn dForce tokens by providing liquidity on the platform. The platform assures no impermanent loss risks, as it doesn't feature any AMMs. The platform offers a wide variety of assets such as multicurrency stablecoins, synthetic assets, USDx, GOLDx and others.
dForce is a lending and borrowing platform with a great potential. There's no worries of suffering Impermanent Losses. It has amazing APY rates with it's highest APY rate to be 23.06% and it's second highest to be 20.56%. Very impressive, I must say. This is a platform to look out for.
Why Are They My Best 2 Yield Farming Platform
It is quite simple, I'm a person who likes to reduce my risks, and also earn good reward. These two platforms offer me that. There is assurance that I won't suffer Impermanent Loss, and for such kind of platform to have an APR/APY of over 20% is just mind blowing. I did thorough research on other Yield Farming platforms such PancakeSwap, UniSwap, Curve, Sushi and Aave, but I chose those two because, I feel they met my criteria and they are really good.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.
I have been following your class recently and I must admit it is awesome. I love the information you dropped about dforce and Venus, nice info.