stablecoin yield farming

Crypto winter is upon us, and chances are crypto markets will continue to trade sideways and experience bearish momentum for the next few months. One of the best ways to hedge against the downward trend is to convert your crypto holdings to stablecoins and lock them on yield farming platforms for guaranteed APY. This article lists the top three stablecoin yield farming platforms to help you survive this crypto winter.

Aave

Aave is one of the most popular stablecoin yield farming platforms on the market. With over $14 billion in value locked and with a market cap of over $3.4 billion, Aave is the safest platform on this list.

Aave also has a native token called AAVE. This token incentivizes users to use the platform by offering discounts on fees, providing vote power for governance, and a host of other advantages.

When it comes to Yield Farming, it’s not surprising to see several liquidity pools working together. Looking at the assets available on Aave, the highest-earning stablecoin is the Gemini Dollar, offering a deposit APY of 6.98% and a borrow APY of 9.69%.

Venus

Venus describes itself as a decentralized marketplace for lenders and borrowers with borderless stablecoins. In other words, Venus enables the world’s first decentralized stablecoin, called VAI. It’s built and backed by the Binance Smart Chain without the need for centralized control.

XVS is the cryptocurrency that absorbs the price volatility of the crypto market, which is why it has a volatile price.

Like other stablecoins work, VAI allows you to earn interest on funds held within the protocol. It has highly competitive rates on stablecoin deposits. Currently, users can receive 7% APY on USDC and 6.56% APY on BUSD.

Users can connect to the Venus dApp using their MetaMask wallets and enable a variety of assets as collateral to start earning interest right away. Venus is a relatively new platform but boasts quite an ample supply of over $3.1 billion in value.

Harvest

Harvest is a relatively new yield farming platform that’s one of the more lucrative options on this list. It consists of an international cooperative of farmers pooling resources to earn DeFi yields.

When farmers deposit, Harvest automatically farms the highest yields using the latest techniques. The pooling of deposits allows the platform to offer some of the most competitive rates in crypto.

Harvest has over $286 million in assets locked on its platform at writing. Even though the TVL is relatively low compared to Aave, Harvest currently offers the highest APY for stablecoins, including 7.93% for USDC deposits and 6.18% for USDT deposits.

Final Thoughts

Generating interest rates via stablecoin deposits is the lowest-risk way to earn a passive income with your crypto. If you’re looking to bet on a bearish market for crypto in the next few months, convert your assets to a stablecoin like USDC, BUSD, or USDT and put it to work via one of the above platforms.

On the other hand, if you’re not quite bearish on crypto but still would like to take advantage of yield farming and generate passive income on your crypto holdings, consider more traditional liquidity farming with an exchange like Uniswap or PancakeSwap to maximize your returns. However, keep in mind that market fluctuations will affect your APY significantly.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.

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