Where to Farm Stablecoins? Our Top 5 Projects for 2022

We highlight the top 5 projects for farming stablecoins in 2022.

Where to Farm Stablecoins? Our Top 5 Projects for 2022
Photo by James Baltz / Unsplash

With the recent geopolitical strife and economic volatility, many investors are opting to keep cash on the sidelines instead of being fully invested in the market right now. That may seem like a good idea, but even if you’re holding onto cash, you still have to worry about the rising rate of inflation. In the US, we’ve just passed 7% on the year. If you’re holding cash, that means you’re taking all of that as a loss. Historically, putting money in a bank savings account would help mitigate some of that real loss without too much work. However, with bank rates commonly at 0.1%, using a savings account as an inflation hedge is essentially pointless. Luckily, web3.0 has a solution for this: yield farming.

There are many DAOs and DeFi tokens advertising high rates of return. Absurdly high rates. Rates that obviously cannot be accurate. For instance, just two weeks ago when we wrote about TIME Wonderland, there were APY rates from DAOs like Wonderland promising 80,000%, or Klima promising 35,000%. And these aren’t random projects; they are substantial ones that you’ve heard of before. So how are they doing this, and why isn’t everyone rich?

Well, the way they’re able to offer these rates is by printing A LOT of tokens and handing them out. This is why prices of these tokens exhibit long term declines across just about every project that offers high rates and is fueled by minting tokens. They promise high rates to bring in investors, then print so many tokens that the market gets flooded and the price collapses.

If you want to keep your money as stable as the US dollar and you don’t want to dabble with these scammy market-flooding DAOs, then you’re looking for stablecoins. And since so much of the DeFi world runs off of stablecoins, there is actually a high demand for making them available. That means by offering your stablecoins, which should always be worth $1 each, to platforms, you can earn strong returns without much risk of asset depreciation. Here’s a list of some of our favorite spots to park stablecoins to earn real returns, while steering clear of the current volatility of the market.

Site Blockchain Stablecoin APY
francium.io SOL USDC 3.53%
beefy.finance Multiple Multiple ~5.00%
anchorprotocol.com LUNA UST 19.44%
gemini.com N/A GUSD 8.05%
crypto.com N/A USDC Up to 14.00%