I am very new in yield farming, so please don’t be mad at any silly question.
I visited this link: https://coinmarketcap.com/yield-farming/
It seems that yearn yield APR is very low comparing to other liquidity pools. Why would anyone use yearn?
I understand pancakeswap, pickle, sushi, etc are unaudited and risky, they should be avoided. But uniswap has 33% APR comparing to yearn 15%, and uniswap is reputable. Harvest is audited, its apr is 139%. I wonder why yearn doesn’t use Harvest or uniswap in its strategies to raise APR.
Good Question! Can anyone answer it?
I think it’s because Yearn relies on Curve to generate yield. As more and more yCRV is farmed and dumped, the less it’s worth and the less yield Curve produces. I read a Twitter thread on this today: https://twitter.com/mrjasonchoi/status/1312814119263768578
APY always depends on the risks involved, there’s no free lunch. Yearn has its own strategies to make decisions, I trust Andre Cronje that’s why I’m willing to deposit my assets into the vaults. Even though Uniswap and Harvest are audited, I’m not smart enough to understand the reports, not sure if it’s a lot safer than yearn.
After all, there are always risks when it comes to DeFi, make sure to invest the amount that you are ok to lose.
The main points have to do with what is being farmed– Pickle and Sushi pairs are all going to experience IL– some of it extreme in the case of Pool 2s like PICKLE/ETH and SUSHI/ETH.
The only tenable strategy out of all of those is perhaps depositing UNI LP tokens to farm UNI– which has recently been proposed here.
Regarding Harvest…I know there were some questions previously with the lack of a time lock on their contract. Also, most of their APY that is reported comes straight from their FARM token distribution. Furthermore, it would be worth considering whether dumping Yearn’s funds into Harvest pools would dilute the rewards to where they wouldn’t be worth it.
Definitely always worth looking out for the best new options, though!
I ranked the list by apy, and i am thinking of going for uniswap ETH-DAI which is 33% apy. Do you think there are better alternatives in the list that have higher apy and safer? Thanks.
I think farming UNI with ETH-DAI is about as safe as you can get. If you don’t feel comfortable with any of the other strategies and aren’t able to look into them enough yourself, then yes, I would stick with ETH-DAI UNI v2 LP.
Yes but something else is up here.
Overnight yields fell from 9.5% to 1.5% according to this site:
Have never seen something like this before ever since Yearn’s inception.
Anything else in the list that have higher apy that is almost as safe as UNI with ETH-DAI?