Cryptocurrency enthusiasts always look for new yield opportunities in decentralized finance. Surprisingly, there are some appealing options on the market, assuming one doesn’t mind a low TVL. Earning over 100% APY is still possible today, although these rates will likely fluctuate over the coming weeks and months.
Earning Over 100% APY With DeFi
It is always a bit risky to chase high-yield decentralized finance opportunities. Earning such high returns is often unsustainable and traditionally involves dealing with volatile assets. Moreover, one may need to rely on offshoot DeFi protocols on a chain one wouldn’t otherwise utilize. However, for those willing to face these challenges, there is some good money to be made.
The NOTE-WCANTO pair on Canto Lending (Canto chain) offers a 30-day average APY of over 300%. Today’s rate is slightly lower at 273%, which is still relatively impressive. The downside is how users need to leverage two volatile crypto assets in WCANTO and NOTE. There is a tremendous chance for impermanent loss when opting for this liquidity pair. Even so, those willing to make a lot of passive income will need a higher risk appetite.
Potentially more appealing is the WETH-USDC (0.05% fee) pair on Uniswap V3. Not the regular one, but the one on Arbitrum, one of the rising blockchains for decentralized finance. Users can expect a 30-day APY of 116%, although that may not be sustainable for too long. The base APY is 46%, which is still more than appealing. Moreover, with a mere 0.54% impermanent loss in the past week, it is a viable option, assuming Ethereum (and WETH) don’t crater.
Uniswap V3 users on the Ethereum chain can look into LINK-WETH (0.3% fee) option. It is a decent yield farming option with an average APY of 101%. It, too, has a low IL of 0.11%, making it a worthwhile option. Its base APY is higher than WETH-USDC at 64.71%, appealing to all yield farming enthusiasts.
Other Yield Farming Options
All these pools have in common is how they represent a relatively low Total Value Locked. Values range from $11.16 million to $22.43 million. That means there is plenty of room for yield farmers looking to get in on the action. However, the more people explore these pools, the lower the APY will get. Maintaining a low TVL isn’t ideal either, but few people will mind.
For those looking at higher TVL pools, options like USDC-WETH on Uniswap V3 (0.05% fee or 0.3% fee) are also viable. They provide an APY of 75.84% and 52.1%, respectively. Those returns are still better than keeping funds in a bank account and involving a reputable stablecoin in USDC. Their overall impermanent loss this week is manageable at 0.53%, although it would have been better to hold the assets rather than farm yield.
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