Farming stablecoins is one of the best plays to make. Here’s your guide.

Covduk
6 min readMay 5, 2022

Farming stablecoins is one of the best plays to make, especially in a bear market.

But how do you by doing it? What are the different options? What are the pros & cons? This post is for you.

We’re diving into:

  • Lending protocols
  • Yield Aggregators
  • Incentivized Liquidity
  • Leveraged farming
  • Risks involved
  • Finding the right play for you

Lending protocols.

Lending protocols are super simple.

Lenders lend out their stablecoins at a certain APY, borrowers borrow at a certain APY that is higher then lender APY.

The interest goes to the lenders.

Top Tier Lending protocols

Top tier blue chip lending protocols like Aave & Compound have been around for a while, they’re safer and have lot’s of money locked in.

The stablecoin APY on these platforms is typically low, but still significantly higher than traditional savings accounts.

If you want to just park your money somewhere safe, simple, make some money & forget about it, these are for you.

You won’t be making anything crazy, but, it’s still solid.

Top tier lending protocol pros:

  • Simple & Uncomplicated
  • Safe
  • Deep pools
  • Park & forget
  • Low cost

Cons:

  • Low APYs compared to options
  • Not as many asset options

Other lending protocols.

There are more niche lending protocols like Rari.

Fuse is Rari’s lending protocol that allows for custom pools.

There are a lots of options and if you look in the right place, you could find higher…

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Covduk

I write crypto 101s, dive dives and how tos. Crypto | NFTs| DeFi