The 8 Best Yield Farming Crypto Platforms 2023 – Passive Income Opportunity

Welcome to our extensive article exploring the very best yield farming crypto platforms in 2023.

As the decentralized finance world explodes from zero to billions of dollars of total value locked (TVL), many investors and developers are trying to develop the next generation of yield farming platforms in the cryptocurrency space, which appears to be the hottest trend in the industry. Making passive income with the best yield farming platforms might help you get a jump start on building your crypto compound profits.

In this article, we’ll go over and assess the best cryptocurrency yield farming crypto platforms, looking at their major features and stats along the way. We’ll also look at various cryptocurrency platforms for beginners who are interested in yield farming crypto, as well as some leveraged crypto platforms.

If you’re new to yield farming, here’s a short video explaining how it works;

What Is Yield Farming Crypto?

Before jumping into our list of the best yield farming crypto platforms in 2023, it’s important to understand the basics of decentralized finance (DeFi) and the associated risks. DeFi can certainly offer some incredible returns, especially with its ability to compound returns on staking and liquidity pools. However, with the opportunity also comes risk, so here is a short summary explaining more about yield farming opportunities and risks.

Aside from the freedom of money, decentralized finance also presents opportunities to earn returns in ways that simply haven’t been possible before. Low transaction costs and the digital nature of assets mean that crypto asset returns very easily be compounded and even boosted in a number of new and exciting ways. Crypto staking and liquidity pool mining have quickly become a huge part of the cryptocurrency revolution. This, in turn, has resulted in a number of crypto yield farming crypto platforms being born, each trying to offer new and innovative ways to increase yield.

The fact that crypto staking can be automated and compounded means that it is a very easy way to generate investment returns, and many see it as a great opportunity to generate passive income.

The Power Of Decentralized Finance

Blockchain technology (and smart contracts) has created a huge amount of opportunities for new economies and is set to disrupt countless industries. Perhaps one of the most compelling uses of blockchain is the way traditional finance can be decentralized to create fairer opportunities and freedom from the controls of governments and financial institutions. After all, whoever controls the money has the power, so imagine a world where no one controls the money, it is simply a means of transferring value.

Decentralized Vs Centralized Exchanges

Some of the most popular exchanges for yield farming are centralized exchanges (CEX) such as Coinbase, Binance, OKX, and Crypto.com. These exchanges are highly regulated and the company themselves are custodians of user funds. By contrast, decentralized exchanges are open to all and generally unregulated, but important, custody of funds remains with the user.

With a decentralized exchange, you can use a decentralised wallet (such as Metamask or Trezor) and freely use it on hundreds of decentralized apps (dApps) to farm exactly as you wish and without restriction.

Whilst CEXs are probably the most popular simply because they offer an onramp and offramp for crypto assets, DEXs offer far more freedom and the potential for much higher rewards.

Understanding Impermanent Loss

If you’ve been researching yield farming crypto platforms you will no doubt have heard the term “impermanent loss”.

Impermanent loss is an inherent risk taken when pairing tokens to create a liquidity token (often referred to as a liquidity pool or LP).

When 2 tokens are paired they need to be matching in value (e.g. $500 USDT and $500 BNB). As long as funds remain in the liquidity pool they remain in balance as a 50/50 split. If one of the assets loses value against the other then a higher-priced asset must be sold in order to buy the weakening asset and therefore losses are incurred. However, the losses are only realised if the LP token is converted back to the original 2 tokens. As long as funds are held in the liquidity pool the losses remain “impermanent”. This is because it’s possible that the assets will recover in value or even swing into profit.

Annual Percentage Yield (APY) Vs Annual Percentage Rate (APR)

Most investors are familiar with the term annual percentage rate (APR) but many newcomers to crypto yield farming pools are unfamiliar with annual percentage yield. Quite simply, APR refers to the percentage return you can earn in 1 year. It is a simple calculation and if 30% is the APR of a yield farm then an investor can expect to receive a 30% return in that year. Annual percentage yield differs slightly because it not only takes into account the APR, but it also factors in compounding and in some cases can also include price appreciation (or depreciation) of the underlying crypto asset.

Crypto yield farming platforms often cite APY and these can be incredibly high. It’s important to understand the risks of investing in very high-yield crypto assets as the higher the APY, often the higher the risk of ruin.

Now that you understand the basics, here’s a list of the best yield farming crypto platforms you need to look out for in 2023:

Weave Financial

The very best yield farming crypto platform has to be Weave Financial. Weave is a next-generation yield farming crypto platform that allows users to customize and optimize their yield farming experience. Yield farmers are able to create their own custom strategies for their favourite liquidity pool pairs (including cross-chain strategies as part of Phase 2) and set the yield to be harvested and compounded exactly as they want it using their proprietary drag-and-drop crypto yield farming strategy builder. With Weave, there is an infinite number of ways to compound and automate farming to maximize returns. This means that it offers not only a lot of time-saving benefits but means that the custom yield compounding gives them some of the very highest yields that can be found anywhere.

They are delivering an extremely powerful set of crypto DeFi tools that are unlike anything else currently available on the market. They want to build the most valuable and powerful Staking and Liquidity Pool DApp in the world, while also making it simple for even complete beginners to get started. Providing unique properties to both experienced yield farmers and complete beginners will result in a symbiotic relationship in which both parties benefit from one another, resulting in the creation of a wholly unique platform and community.

With Weave, you can automate your farming and enhance the yield offered by a huge number of DeFi protocols and exchanges such as Pancakeswap, Apeswap, Uniswap, Sushiswap, Spookyswap, Spiritswap, Liquid Driver, Quickswap and many more. This makes it similar to a yield farming aggregator whilst also outperforming autoresponders such as Beefy finance and Autofarm.

While Weave tends to focus on more experienced users, it also provides high-yield investment opportunities to even complete beginners through a decentralized copy-farming mechanism that securely grants users access to high-yield farmers while also allowing them to manage the allocation of funds within their private wallets.

Pros

• Easy To Use
• Integrates most liquidity farms and crypto staking options across multiple chains
• Yields in excess of 100% APR Can Be Achieved
• 100% Customizable Yield Farming platform
• Very secure (their dapp creates smart contracts rather than shared pools or vaults)

Cons

• Currently low TVL
• $Weave token required to unlock full platform features

What Makes Weave Different?

They are establishing a community that will welcome both experienced yield farmers and complete newcomers to the industry in the same spot. Those who are experienced in yield farming will discover some of the most profitable yield farming opportunities available anywhere, with the potential to earn much more by sharing their strategies with others who are just starting out. With just a few clicks of the mouse, beginners will be able to earn their first-ever rewards from crypto yield farming pools by copying the strategies of experienced users.

Weave “Passive” includes a crypto “Copy Farming” feature that is extremely simple to use and is ideal for absolute beginners or those who simply want to profit from DeFi without having to build and manage their strategies. Simply identify the Pro Users whose strategies you admire and copy them into your Wallet to get started. Whatever your level of experience, we will walk you through the entire yield farming process and have you earning yield in no time!

Here is the full Weave ecosystem, including their own decentralized exchange aggregator (similar to 1inch) and Tailored Solutions (for white labeling the tools for integration into other DeFi protocols).

AQRU

AQRU is owned by Accru Finance Ltd, a financial services company based in London. The platform provides a user-friendly method for those who purchase cryptocurrency to earn a return on their investments. This functions in a similar fashion to traditional bank deposits – hence the phrase “crypto savings account.”

The AQRU crypto lending platform has been conceived and built by a team of experienced investment, payment, and technology professionals to give a straightforward approach to generating a return on cryptocurrency holdings. Now, AQRU supports both stablecoins and non-stablecoins — more precisely, BTC, ETH, USDT, USDC, and DAI.

AQRU aims to give investors a simple and accessible way to store and profit from their cryptocurrency holdings and investments. The platform will generate interest ranging from 7% to 12% for the simple service of acting as a custodian for your digital assets. Furthermore, AQRU is a user-friendly website that makes it very easy to use, even for absolute beginners.

Given that it will be launched in December 2021, it will have a lot on its plate, just like it will have a great deal to prove against its competitors in the market. However, it differs from most of its competitors due to its platform-based idea. It says that thanks to the experience and understanding of the team behind it, it would provide the greatest possible user experience while also providing the best possible return on exchanges based on decentralized financial markets (DFMs) (DeFi). The final product will be an open ecosystem that will be accessible to anyone.

User Experience

The user interface of AQRU is simple, making it appealing to both new and experienced investors. Both the web-based platform and the mobile application, according to our research and testing for this AQRU review, were extremely user-friendly. Immediately upon logging in to the web platform, you will be able to see your total balance, as well as your total earnings as well as your earnings each day. It’s also simple to earn interest since all you must do is click on ‘Buy’ and select from a variety of high market cap USD Stablecoins, Ethereum, or Bitcoin to get started. In only a few clicks, you’ll be able to begin producing interest payments on your investments, which will be computed daily for your convenience. Alternatively, if you require any assistance at all, there is a convenient live chat function where you may ask questions, with response times averaging less than 10 minutes on average.

Features

AQRU incorporates several useful features that are intended to make the yield farming process as simple as possible for users. Let’s take a closer look at some of the most important features in greater depth:

Interest Rates

As previously stated, the interest rates offered by AQRU are significantly higher than the interest rates offered by typical savings accounts. As reported by The Guardian, interest rates on personal crypto investment accounts are continuing to decline, with the average rate offered by rapid access accounts being less than 0.2%! This comparison demonstrates how attractive AQRU’s yields are, as well as how they can assist you in growing your assets over time.

No lock-up period

Many cryptocurrency savings accounts force customers to ‘lock up’ their crypto holdings for a defined amount of time, which means they are unable to withdraw their funds during that time (or are heavily penalized if they do). In the case of AQRU, there is no lock-up arrangement in place, which means that investors can withdraw their funds at any moment. This is particularly advantageous when the cryptocurrency market is volatile or when the investor requires the cryptocurrency for other purposes.

Security Features

In addition, because of AQRU’s relationship with Fireblocks, its customer holdings are completely safe. In addition, according to the Fireblocks website, the software is trusted by more than 800 organizations around the world and has so far protected the transfer of more than $2 trillion in digital assets. Furthermore, Fireblocks uses a unique technology in conjunction with next-generation protocols to ensure that cryptocurrency holdings are kept at the highest level of security possible.

eToro

Discovering a cryptocurrency exchange that’s well-regulated can be difficult. eToro is not only regulated, but it’s also one of the most well-known and reputable exchanges out there, making it one of the best yield farming platforms right now.

The list of regulators is one of the largest you will see, and includes the FCA, the SEC, the CsSEC and the ASIC.

Etoro is not a “classic” yield farming platform because they don’t offer liquidity pools or farming in the usual sense. However, they still make the list as being one of the largest exchanges out there, and they do still offer staking services for earning yield.

Etoro Crypto Staking

Like most centralized exchanges, eToro offers staking for the market cap large proof of stake tokens, such as ETH, ADA and Tron. Whilst regular yield can be earned from eToro, it is not the most efficient way to do it due to the lack of compounding options. Management fees are also quite high at 25% and it’s certainly possible to find more competitive staking fees than this. However, it is possible to reduce fees right down to just 5% by joining their loyalty program.

Staking rewards are accrued daily and paid to your account each month. Unlike some staking platforms, eToro does not have a lock-in period, meaning users can withdraw their funds at any time without penalty.

eToro has one of the easiest platforms to use, including good funding options and a very easy-to-use user interface.

User Friendly

One of the really great features of eToro’s cryptocurrency offering is their demo account, which allows users to practice trading in a completely safe environment. By using “pretend” funds, traders can learn to trade without suffering any losses.

They also provide their customers with a wallet and custodial services, making it incredibly easy to store crypto. In a world where changes are hard to trust (yes we’re referring to FTX!) it’s important to know that your crypto can be safely stored.

Pros

• Millions of customers worldwide
• Built-in custodial service and wallet
• No minimum lock-in period – sell or trade at any time!
• Low transaction and trading fees
• Very well regulated
• Ideal for crypto newbies to get started

Cons

• Not the best option for seasoned yield farmers!
• Quite a small range of tokens on offer compared to other exchanges
• Very limited yield farming options (staking and liquidity pools)
• No access to auto-compounding or enhancing yield

You can start buying cryptocurrencies on eToro for as little as $10. With more than 40 supported tokens it’s ideal for even the most adventurous degens!

Of course, eToro is perhaps best known for its copy trading and smart portfolio features, which can be used not just for crypto but for stocks and commodities too. Simply find a master trader you like and you can copy all of their trades into your own account!

Coinbase

In terms of user accounts, Coinbase is one of the world’s largest cryptocurrency exchanges, with the site already servicing tens of millions of traders worldwide. Using a debit or credit card, you can simply purchase digital currencies from this site, and the Coinbase trading interface itself is ideal for newcomers. Once you have cryptocurrency in your Coinbase account, you will be able to begin to earn interest on your investment.

This is made possible using its automatic staking mechanism, which has no lock-up period. As a result of Coinbase’s recent entry into the cryptocurrency yield industry, the platform now offers only six different currencies. Cosmos (5%), Tezos (4.63%), Ethereum (4.5%), and Algorand (0.5%) are among the coins represented (4%). Dai (2%) and USDC are examples of stablecoins (0.15%). Although Coinbase is an excellent choice for beginners, the annual percentage yields (APYs) on offer are significantly less competitive when compared to other platforms. These are great ways to earn passive income!

A Popular Choice For Beginners

Coinbase, one of the most effective yield farming sites, allows customers to choose which DeFi protocol to employ to earn income. Bitcoin (ETH), Ethereum (ATOM), Algo (DAI), Dollar (USDC), and XTZ are the cryptocurrencies that are supported and eligible for interest earning. ATOM has the greatest APY at 5%.

The teaching tools offered on Coinbase, which makes it one of the top platforms for crypto yield farming novices, are maybe the most valuable aspect of the platform. It is not only possible to complete comprehensive courses on how to earn and yield farm from cryptocurrency but completing some of these resources may also allow you to obtain free cryptocurrencies.

Pros

• Beginner-friendly platform
• Several popular coins available for yield
• User-friendly mobile app available
• Easy to deposit and access profile

Cons

• A limited number of yieldable crypto
• Below average returns

Their sheer size and dominance in the crypto market make Coinbase one of the top yield farming platforms in the world.

Crypto.com

If you’re ready to stake a significant amount of their native tokens, Crypto.com has the potential to be one of the best yield farming tools with high stablecoin APY’s.

Aside from offering a high annual percentage yield (APY), Crypto.com distinguishes itself from the competition by offering a variety of earning opportunities. Additionally, Crypto.com offers three different holding plans to go along with the approximately 50 cryptocurrencies that are accessible for crypto yield farming use. Flexible holding periods, 1-month fixed-term, and 3-month fixed term are the options available for these holding terms.

As a result, depending on how much Crypto.com Coin (CRO) you stake, the holding term you choose, and whatever cryptocurrency you use to yield farm, the APY will differ. Take, for instance, earning the maximum amount possible on USDT, which is 14% APY, which requires staking $40,000 worth of CRO and using a 3-month fixed holding period.

Crypto.com App

Crypto.com’s wallet app, on the other hand, is one of the most effective DeFi yield farming systems on the market. There are over 35 tokens available for purchase here, all of which have no lock-up periods and provide reasonable returns.

A separate DeFi platform is available on Crypto.com, which allows you to earn interest on your digital assets directly from your wallet. This is delivered in the form of an app that may be downloaded to your mobile device.

At the time of writing, this service is available for more than 35 different coins, including Yearn Earn V2, Compound, Aave, and Cosmos, among others.

If you invest in the network’s native token, CRO, you can earn as much as 16.02% each year in returns. This will be directly added to your wallet and will not be subject to any lock-up period restrictions or limitations.

Additionally, Crypto.com provides trading and exchange facilities, as well as cryptocurrency-backed debit cards, in addition, to yield farming services.

Pros

• Supports over 40 cryptocurrencies for earning
• 14% interest on staking stablecoin on the platform
• Earn rewards from staking CRO
• DeFi wallet available for DeFi yield farming
• Fees are competitive and transparent and offer discounts

Cons

• Lower returns per annum without staking CRO
• Difficult to navigate trading fee discounts
• Small range of staking and liquidity pool tokens

BlockFi

BlockFi is a cryptocurrency platform that is easy to use, and it has its cryptocurrency wallet and cryptocurrency exchange. You can receive an APY of 8% on stablecoins such as USDT, DAI, and USDC when you use BlockFi.

For the time being, BlockFi’s crypto yield farming product, known as the BlockFi Interest Account (BIA), is not available to customers in the United States. Because BIA has not been registered under the Securities Act of 1933, the product is currently unavailable in the United States. Users of BlockFi wallets, on the other hand, may still link their BlockFi wallets to other high-interest cryptocurrency savings accounts.

Depending on whether rules have been clarified, BlockFi could be one of the most effective venues for yield farming, owing to the large maximum limitations for cryptocurrency earning. For example, consumers can expect a profit of 8% interest on their first 20,000 USDT in their account. From there, the remaining stablecoins up to a total of 10,000,000 USDT will earn an annual percentage yield of 7%.

Even though BlockFi isn’t strictly speaking one of the leveraged yield farming crypto platforms, it does allow users to loan up to 50% of the value of their cryptocurrency.

Pros

• Allows for monthly compounding on earning positions
• Over 14 stablecoins and other crypto assets are available for earning
• Higher upper limits for crypto interest tiers
• Rewards credit card and investment products are available
• Mobile app available

Cons

• No 24/7 live support
• Available only for non-US clients

Gemini – Great for Safety

Warning: Whilst Gemini is considered a trusted broker, they have been badly impacted by the recent FTX collapse and they should therefore be approached with extreme caution! Learn more here.

Gemini is one of the largest crypto exchanges in the world today. Created by the well-known Winklevoss twins, it has grown rapidly in recent years due to VC backing.

The platform can be used as an onramp and offramp, allowing people to easily buy their first crypto using their debit or credit card. They offer a wide range of tokens and support multiple chains. They even offer their own credit card, as well as the Gemini Dollar, which is their own native stablecoin.

Similar to eToro, Gemini doesn’t offer extensive yield farming services (for this you are better off using DeFi protocols such as Weave) but does offer staking rewards.

Using Gemini exchange is very easy, especially thanks to their convenient iOS and Android app. However, the range of staking is currently very limited, and they only offer Polygon (MATIC) and ETH staking right now. They do plan to add more staking options in the future though.

Binance

Last on our list of the best yield farming crypto platforms is Binance.

Binance is probably the most well-known cryptocurrency exchange in the world and is certainly the largest. They generated a whopping $20billion of revenue in 2021 and have close to 30 million customers.

The Binance ecosystem is very large and complex, involving the main exchange, its own tokens (BNB and BUSD) as well as its own chain (BNB chain) and accelerator (Binance Labs).

They are very well-regulated and also highly respected within the industry. Their CEO, CZ, is well-known within the industry and many consider him to be one of the earliest visionaries in crypto.

What makes Binance one of the best crypto yield farming platforms right now is the sheer volume of staking that is translated through their platform. They are certainly one of the largest staking platforms for large market cap tokens such as ETH, ADA, and MATIC.

Although they call their staking “DeFi”, it is not exactly decentralized simply because it’s hosted on a centralized exchange. If Binance we to go bankrupt it’s likely that your staked funds would be at risk, and it’s possible to lose some or even all of your money.

Binance Farming Options

Whilst Binance has a very wide range of digital assets that can be traded and exchanged, their range of farms is really quite limited. The returns are also lower than can be achieved on DeFi protocols.

Some of the tokens that can be staked on Binance include XRP, Litecoin, ETH, BUSD, BNB, and AAVE. Returns are typically around 1-2%, which is low for yield farming! They also have lock-in periods, making it difficult to access funds once they are deposited and locked.

Binance is a great choice for crypto investors that want the comfort of yield farming on a centralized and well-trusted exchange, but not great for those looking for higher returns and compounding features.

Other Popular Yield Farming Platforms

The rapid growth of decentralized finance has meant that there is now a huge range of decentralized exchanges (DEX) and multiple smart contract chains. The largest chains for DeFi right now according to DefiLlama are Ethereum, Binance Smart Chain (BNB Chains), Polygon, Fantom, Tron, Avalanche, and Arbitrum.

Within this huge ecosystem, there are literally hundreds of yield farming tools available, each offering something unique to their users. Whilst most of the main ones are integrated into Weave, here are some of the most popular yield farming platforms for those that would like to research them directly;

Frequently Asked Questions

Is Yield Farming Profitable?

Yes, yield farming can be very profitable although it is also possible to suffer losses and understanding the risks is very important. Crypto assets can be very volatile and this results in the possibility of both large losses and large gains in equal measure.

What Is The Best Yield Farming Crypto Platform?

There are many great yield farming tools out there, however, we consider Weave to be the crypto best yield farming platform right now. The automation of this platform makes earning yield very easy and potentially very profitable. This is why so many people see it as a great way to generate passive income.

Here is a short video on some yield farming strategies.

Is Yield Farming A Good Investment?

This depends on many factors. Whilst it can be very profitable, it can also be highly risky and without a clear understanding of the mechanics of yield farming and where the risks are, it’s very possible to suffer losses, making it a bad investment! However, millions of experienced investors are now earning yield from their crypto and profiting from this exciting new innovation.

What Are The Risks Of Yield Farming?

Many people think that crypto yield farming requires very high-risk tolerance, but this isn’t necessarily the case. The main risks to consider are volatility risk (crypto assets value fluctuating up and down) and impermanent loss. Both of these are explained in more detail on this page, but another risk to consider is that of hacks and rug pulls. To learn more about crypto asset rug pulls and how to stay safe please watch this video.

Does Coinbase Allow Yield Farming?

Yes. Coinbase allows some degree of yield farming, although it is restricted to a small number of tokens and they don’t have powerful tools for compounding yield like other protocols such as Weave do.

Where Can I Yield Farm Crypto?

There are hundreds of places you can yield farm crypto. There are both centralized and decentralized ways to earn yield from staking and providing liquidity. We discuss many of these on this page.

Which Crypto’s Can You Yield Farm?

There are tens of thousands of cryptocurrencies that allow you to stake or provide liquidity and therefore farm yield. It can be very confusing knowing where to start with yield farming, this is why aggregators such as Weave are a good place to start because they offer a huge variety of farming on multiple blockchains all in one place.

Does Binance Allow Yield Farming?

Yes! Binance exchange offers staking and some liquidity options. However, they are quite restrictive in the number of pools and farms they offer. Also, there aren’t any powerful tools for compounding or automating yield, which makes them a less popular choice for experienced users.

What Are The Benefits Of Crypto Yield Farming Platforms?

Dedicated yield farming platforms are superior to centralised exchanges that have some staking options in many ways. Firstly, they are centralized, which means you have the freedom to choose any tokens and staking farms you want. Secondly, they offer far more powerful tools, such as the ability to enhance and compound yield. Thirdly, they are far less restricted by regulation.

Is Yield Farming Safe?

Whilst yield farming crypto pools can be highly profitable, it also carries risk of losses though price fluctuations and through scams and rug pulls. If you use a reputable company to earn yield then they can be very safe from hackers and other malicious attacks. Using a decentralized wallet (such as Metamask) on a decentralized exchange (such as Curve Finance) as the liquidity provider can be good in protecting from scams but also carry risks as there is no insurance for funds lost in a decentralized wallet.

What Is TVL?

TVL stands for total value locked and represents the about of money held in a protocol, pool or vault. Often, the total value locked (TVL) is displayed in US dollars (USD). For example, Makerdao has a TVL of around $8billion, meaning that the total amount of funds held (or locked) in their platform is $8 billion. It is similar to assets under management, only DeFi protocols don’t need to custody user funds and this is why they may be “locked” but they are not “held” by the protocol themselves and remain under the control of the user.

Is Yield The Same As Interest?

No, yield is not the same as interest. Interest is normally earned (or paid) according to a pre-agreed contract, normally involving fiat money deposits with banks. Interest is paid to the investor by the centralized organization that the contract is with. Yield, on the other hand, is earned by performing beneficial tasks to the underlying protocol, such as staking or providing liquidity. Yield is often made up of a mixture of rewards per transaction (a share of transaction fees for example) and bonuses paid by the underlying crypto protocol. It is also done in an automated and mostly decentralized manner.

That wraps up our extensive look at the very best crypto yield farm platforms in 2023. Now it’s time for you to go out there and earn yield! Will you provide liquidity as part of your investment strategy and if so who for? Please leave a comment below if you have any questions.

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