7 Safest & Most Profitable Yield Farming Platforms (2022)

By 

Marcel Deer

 on September 26, 2022. 
Reviewed by 

Michelle Meyer

Paper on desk with "yield farming" printed on it, surrounded by paper clips

Crypto markets are notoriously unstable, especially as of late. This is why many investors are becoming interested in earning cryptocurrency through yield farming instead of holding or day trading.

Yield farming was a key catalyst behind the decentralized finance (DeFi) boom of 2020. Investors jumped at the chance to earn high-interest rates on their digital assets while taking advantage of the explosive growth of many popular cryptocurrencies.

Well into 2022 and beyond, yield farming will remain a popular way to earn and grow your investments. Here are seven of the safest and most profitable yield farming platforms you should consider.

» Looking for a more secure crypto option? Read up on stablecoin yield farming

1. YieldShield

YieldShield is a DeFi farming platform that leverages algorithmic trading. Designed to help users maximize their profits, it functions by using a dedicated smart contract for each member. It also has a stop-loss function to minimize losses.

Additionally, members have the option of creating a robo-farmer contract to find new farms with higher potential earnings and automatically sell the yield while maintaining their set risk parameters.

2. AAVE

AAVE is a lending and borrowing platform that allows users to deposit digital assets into a liquidity pool and receive interest payments. With liquidity pools, the protocol’s code can easily and quickly approve loans at scale, while smart contracts make borrowing and lending easier.

Transactions are automatically completed, and the smart contract that governs the protocols' decisions will liquidate users’ assets to the letter of the code. AAVE boasts some of the best borrow APRs (annual percentage rate) in the industry due to investors flooding the platform with cryptocurrency.

» Want to learn more about AAVE? Read more in our AAVE review and evaluation

3. AQRU

AQRU is a relatively new yield farming platform wherein users can stake their digital assets to earn rewards from participating protocols.

The platform offers interest calculated and added per day, and because the interest is reinvested, this provides users with a very easy source of yield farming. The process happens automatically, and there are no extra fees for participating in it.

AQRU also offers a 10 USDC initial welcome investment, KYC documentation requirements, and no deposit fees. The minimum deposit is 100 Euros.

4. BlockFi

BlockFi is a cryptocurrency exchange that offers investors a variety of options to grow their portfolios. On the platform, investors can earn interest on stablecoins and digital assets with reasonable APYs (annual percentage yields).

For instance, one can earn up to 9.25% APY on Tether deposits into a BlockFi account, with no lock-up period. This rate applies to the first 20,000 USDT deposited.

For security purposes, BlockFi stores the majority of client digital funds in cold storage, and digital tokens are kept with third-party exchanges like Gemini.

5. eToro

eToro doesn't offer traditional yield farming services, but members can still earn passive income. The eToro platform has a staking tool that automatically generates income as long as users hold the tokens in their accounts. They can withdraw this income at any time.

Staking with eToro is one of the easiest ways to earn passive income from digital assets, and the minimum first deposit amount is as low as $10 for users in the US and the UK. There’s also no minimum duration for keeping your eToro tokens, as all interest-bearing tools are available on flexible terms.

6. SushiSwap

On SushiSwap, users can swap Ethereum-based tokens. The platform supports both yield farming and staking, which means users can earn rewards for providing liquidity to the platform or for simply holding their digital assets in a SushiSwap account.

SushiSwap is very user-friendly, and there's no need to go through a complicated process to begin earning rewards. Many investors prefer staking because it yields returns with minimal effort, while farming provides rewards without having to provide liquidity.

7. UniSwap

Uniswap is one of the best platforms for yield farming. It offers swaps for Ethereum and ERC-20 tokens, as well as liquidity pool staking. Liquidity providers earn a percentage of every swap's trading fees, and if they deposit a large enough amount, they can potentially gain significant interest.

Pool-specific and constantly changing market conditions determine the interest rates for Uniswap, much like other DEXs.

» Inspired to try yield farming but unsure where to begin? Make sure you're familiar with the basics of yield farming strategies

Conclusion

These are only a few of the best yield farming platforms you can choose from. As you can see, the different platforms offer various services to help you grow your digital assets. The key is to find the one that best fits your current needs and financial goals.

As with any investment, it's important to do your research before committing. If you're looking for a way to earn passive income from digital assets, yield farming is definitely worth considering.

Can't find what you're looking for?