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I’m a crypto content strategist and author who helps Web3 initiatives tell their story, build belief, and develop engaged communities in an increasingly aggressive space. The yield farming market today looks nothing like the wild west of DeFi Summer Season 2020. Most of these 10,000% APY swimming pools are dead, their reward tokens price pennies, and the protocols that offered them either hacked or abandoned. Aave is a lending protocol where users deposit crypto to earn curiosity or borrow against their deposits, with $40 billion in TVL. The platform presents variable charges around 4-7% APY for stablecoins and 2-3% for ETH, although rates fluctuate based on utilization. As DeFi has exploded in recognition, so too have yield aggregator platforms.
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Use protocols with $1B+ TVL, stick with stablecoin swimming pools to keep away from impermanent loss, and never put more than 10% of your portfolio in any single farm. However when you have threat capital, time to analysis, and the abdomen for volatility, yield farming is still considered one of crypto’s most dependable income streams. The “farming” part comes from the way you domesticate these returns.
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