The DeFi narrative is rising again, reviewing several farming opportunities with good returns

Original source: The DeFi Investor

Compiled by: Azuma, Odaily Planet Daily

The content of this article is a compilation and supplement of tweets from The DeFi Investor, and does not represent the views of this platform, nor does it constitute investment advice. Please analyze and judge independently.

DeFi has welcomed a good season for yield farming.

If you are looking for high-yield opportunities with stablecoins and mainstream assets, don't miss this thread. I will share some good DeFi farming options in the following sections.

It is important to note that yield farming in the DeFi world cannot be completely free of risks. Smart contract vulnerabilities, rug pulls, impermanent loss… these potential risks will always exist. What you should do is face the risks and manage them correctly—diversify your funds and don't put all your eggs in one basket.

1. Convex Finance, pETH - ETH pool

pETH is a derivative asset of ETH issued by the JPEG'd Protocol. Users can mortgage their NFTs on the JPEG'd Protocol and borrow pETH, thus releasing the liquidity of their NFT value.

Currently, if you deposit liquidity in the pETH - ETH pool and stake the corresponding LPs Token on Convex Finance, you can earn a reward of 28% APY.

Since the price of pETH is pegged to ETH, this pool has virtually no impermanent loss risk.

The main risk of this pool lies in the fact that the value of pETH is supported by the NFTs mortgaged by users. Therefore, if the price of the NFTs used as collateral crashes significantly and the JPEG'd Protocol fails to effectively liquidate, it could result in bad debts. This possibility is not high, but if it occurs, pETH may decouple from its peg.

2. Vela, VLP

Since its launch last month, the decentralized derivatives trading platform Vela has exceeded everyone's expectations in trading volume.

VLP is a liquidity credential token on Vela, which can be minted using USDC. VLP minters will receive rewards based on Vela's trading volume, with the current staking APY exceeding 120%, which includes 60% from platform fee revenue and 10% from funding fee revenue.

It is important to note that due to Vela's operational mechanism, which essentially pits traders against liquidity providers (VLP minters), if traders always win, VLP stakers will incur losses. However, as long as the platform's trading volume remains high, VLP will be a good opportunity for earning USDC.

Given that the Vela team has announced a series of upcoming actions (trading competitions, test phase airdrops, official launches, etc.), the platform's trading volume is expected to continue to grow.

3. StakeDAO, frxETH

This is another high-yield opportunity for ETH, with an annualized yield of approximately 22%.

frxETH is a liquid-staking derivative token launched by Frax Finance, and its yield mainly comes from the CRV incentives obtained by Frax Finance through its substantial veCRV voting power in the Curve liquidity pools.

If you deposit frxETH into Stake DAO, the protocol will deposit it into the Curve gauge and further enhance incentives by locking CRV in the CRV Liquid Locker.

According to data from DeFiLlama, the average APY of this pool over the past 30 days has been 15%.

4. Velodrome, LUSD - MAI pool

The recent drama over the past few days has proven one thing: we need truly decentralized stablecoins, rather than relying on centralized stablecoins like USDC. Both LUSD and MAI fall into this category, with LUSD being minted solely through the collateralization of ETH.

Currently, the yield of this strategy is 17.5%, with an average APY of 14% over the past 7 days. While not as high as the previous options, at least LUSD and MAI seem to be "stable" as stablecoins.

These are some high-yield opportunities that I have compiled recently, which have proven to be relatively safe over time.