Yield farming and liquidity mining are two popular ways to earn passive income in the world of cryptocurrency. By providing liquidity to decentralised finance (DeFi) platforms, users can earn rewards in the form of tokens. If you’re interested in getting started with yield farming and liquidity mining, we’ve compiled a list of the best platforms to help you get started.
Uniswap
Uniswap is one of the most popular decentralised exchanges (DEX) in the DeFi space. It allows users to trade ERC-20 tokens without the need for an intermediary. Uniswap also offers liquidity providers the opportunity to earn fees by providing liquidity to the platform. The platform’s native token, UNI, can also be earned through liquidity mining. Uniswap has a user-friendly interface and is a great platform for beginners to start yield farming and liquidity mining.
Compound
Compound is a decentralised lending platform that allows users to earn interest on their cryptocurrency holdings. Users can lend their cryptocurrency to the platform and earn interest on their deposits. The interest rates are determined by the supply and demand of each cryptocurrency on the platform. Compound also offers liquidity providers the opportunity to earn fees by providing liquidity to the platform. The platform’s native token, COMP, can also be earned through liquidity mining. Compound is a popular platform in the DeFi space and is known for its high interest rates.
Aave
Aave is a decentralised lending platform that allows users to earn interest on their cryptocurrency holdings and also offers flash loans. It uses a unique system called “flash loans”. This allows users to borrow funds without collateral as long as the funds are returned within the same transaction. Aave also offers liquidity providers the opportunity to earn fees by providing liquidity to the platform. The platform’s native token, AAVE, can also be earned through liquidity mining. Aave is a popular platform in the DeFi space and is known for its innovative features.
Curve Finance
Curve Finance is a decentralised exchange that specialises in stablecoins and allows users to trade between different stablecoins with low fees and slippage. It also offers liquidity providers the opportunity to earn fees by providing liquidity to the platform. The platform’s native token, CRV, can also be earned through liquidity mining. Curve Finance has gained popularity in the DeFi space for its focus on stablecoins and its low fees.
Balancer
Balancer is a decentralised exchange and automated market maker that allows users to trade between different tokens and earn fees by providing liquidity to the platform. Balancer’s unique feature is its customisable pools, which allow liquidity providers to create their own pools with custom weightings for different tokens. This allows for more flexibility and control over the assets being traded. Balancer also offers liquidity providers the opportunity to earn BAL, the platform’s native token, through liquidity mining.