5 months ago 2 min read

Analyst's Best Yield Farming Protocol of 5,500 Pools


The crypto expert with the user @hansolar21 on Twitter has examined data regarding the security, profitability, and sustainability of 5,510 yield farming instruments (liquidity pools) on all of the main smart contract platforms. His top recommendations are listed below.

Looking for the Finest and Safest Yield on DefiLlama

According to a tweet published by @hansolar21 on Twitter yesterday, on October 28, 2022, he scanned thousands of protocols made for "yield farming" using ML techniques and large data analytics tools (getting rewards for providing cryptocurrency liquidity to on-chain exchange systems). The top DeFi tracker DefiLlama's API was used to provide data.

He chose to test his theory using a fictitious $100,000 investment, therefore only sustainable pools with more than $400,000 in total value locked (TVL) were included for the study.

Only 327 of the 5,510 first protocols were "confident" and offered annualized yields of over 5%. (which can be easily found in risk-free centralized and decentralized passive income machines). There were just 130 procedures that could now be appropriately injected with $100,000 in equivalent.

For @hansolar21, the majority of intriguing chances are built on top of the Ethereum (ETH) blockchain, including the Badger DAO, SushiSwap, Angle, and Goldfinch protocols. On Ethereum's L2, Optimism opportunities using the LYRA token also caught his eye.

According to the expert, the best option is the on-chain derivatives platform GMX, whose pools based on Arbitrum and Avalanche are each offering 15-20% on the GLP token.

Sad Reality: There is No Profitable Farming Outside Top Bracket

The finest rates for safe yield farming on Polygon were provided by the seasoned DeFi Kyber Network, while multi-protocol platform Tetu offers a 20% yield on the BTC-USDC pool. The three companies that led Solana's market were Friktion Labs, Frakt, and Credix Finance.

The analyst also thinks that Avalanche's oldest DeFi Trader Joe looks promising for AVAX liquidity. Other opportunities didn't appeal to him since they seemed too hazardous or unstable:

"Everything else is either ephemeral, unstable, too low, too small, imminently ruggable, not actually yield."

Other overhyped smart contract platforms, such as BSC, Polkadot, Fantom, Cronos, Karura, Kusama, Moonriver, and Ontology, appear unimpressive when it comes to alternatives to yield farming, he continued.

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