3 DeFi gems on upcoming blockchains

3 DeFi gems on upcoming blockchains

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Mike
Mike

An editor at Coincrop


18 Feb 2022 | 7 min read
36,615 views

T

he cryptocurrency yield farming industry offers some amazing rates but finding those opportunities often requires a significant amount of research. In this article we look at 3 yield farms with great potential.

In this guide:

Disclaimer: All of the information written on Coin Crop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.

Introduction

Individuals that are new to the world of yield farming tend to head towards the more established decentralised exchanges such as PancakeSwap or Uniswap. Whilst these established organizations bring a good assurance of project stability there are many other yield farming opportunities with far greater returns.

When we think of blockchains, it is the established platforms such as Ethereum and Binance Smart Chain that come to mind. Few people realise that there are now over 80 established alternate blockchains. These lesser known chains are typically newer and are seeking both users and greater liquidity – this is reflected in the high yields that are offered. Of course, the positives of these generous yields are negated by the risks of moving your capital onto blockchains with less of a track record.

In this article we examine 3 over-looked yield farms.

NetSwap LP farming on Metis Andromeda

Some of these blockchains are rather obscure and Metis Andromeda can be described as such! Metis started as a hard fork of the Optimism blockchain. The founders were impressed with the simplicity and effectiveness of rollup technology which allows optimistic rollups to bundle huge numbers of transactions in order to deliver a cheaper, faster and scalable user experience.

In simpler terms, Metis can be thought of as a layer 2 Ethereum blockchain.

The most popular decentralised exchange (DEX) on Metis is NetSwap. Although Metis is a lesser known chain, NetSwap has still managed to accumulate $237 million in total locked value (TVL).

There are presently 11 pools available, predominantly METIS and NETT pairs.

It should be noted that the protocol token (NETT) is currently undergoing a distribution phase.

Although we consider this project less risky (as it is an Ethereum layer 2 blockchain), it is of concern that the $19 million market capitalisation versus the half a billion fully diluted valuation. We would assume from this that there are many unlocked tokens awaiting distribution. Therefore, we would not recommend holding NETT for the long term – i.e. jump the token and obtain yours rewards.

AuroraSwap on Near Aurora

Running on the near protocol, Aurora is a new smart contract platform (a layer 0 blockchain infrastructure). The leading decentralised exchange (DEX) on Aurora is  AuroraSwap. This is a UniSwap fork with the web design forked from PancakeSwap.

$BRL (Borealis) is the native DEX token - $AURORA is the native token of the Aurora smart contract platform.

In terms of farming, the stablecoin pools are particularly attractive – the BUSD-USDC-USDT and USDC-USDT pairs offer over 15% in yield returns.

If stablecoins are not your choice of investment, the second tier alternatives would be NEAR pairs with APRs exceeding 50%.

At the time of writing, the total locked value (TVL) of AuroraSwap is over $7 million. Clearly this project is very early and it should be noted that it hasn’t yet been audited.

StellaSwap on Moonbeam

Moonbeam is a lesser known blockchain that is a parachain running Polkadot. You may have heard of Moonriver before – Moonbeam can be thought of as the release version of Moonriver. Dapps begin life on Moonriver for testing purposes before launching on Moonbeam.

StellaSwap is the largest decentralised exchange (DEX) running on Moonbeam. It is a fork of the Uniswap codebase. 

Yields of over 600% APR are possible for MATIC-STELLA and STELLA-AVAX pairs. There are clearly risks with these pairs but the high yields pays accordingly.

A lesser risk would be Moonbeam’s native token GLMR. Pairs such as MATIC-GLMR and AVAX-GLMR pay over 150% APR.

The project has a total locked value (TVL) of over $84 million.

Thoughts

These 3 projects are just some of the many high yield farming opportunities that can be found with a bit of research. The trend that we are beginning to see is the shift towards layer 2 chains and the decentralised projects.


Mike

Mike

An editor at Coincrop
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