Top 5 Yield Farms on Binance Smart Chain
Discover a list of the best yield farms on Binance Smart Chain (BSC) that you can farm on today.
Decentralized finance (DeFi) has added a fresh layer of enthusiasm for crypto, and regardless of the numerous clubhouse sessions and think pieces on its viability, what is clear is that we now have new ways of generating returns in the crypto markets other than trading and HODLing. One such way is yield farming.
What Is Yield Farming?
Yield farming is an aspect of DeFi that involves “putting cryptoassets to work” by placing them into autonomous financial protocols to leverage strategies such as lending, providing liquidity, and staking to maximize returns.
How It Works
Suppose you have $100 worth of BNB, you can deposit it (usually in equal parts with another asset) in a DeFi lending or trading pool and earn interest on it (depending on the annual percentage yield — APY), typically in form of the DeFi protocol’s native token.
Yield Farming on Binance Smart Chain
Binance Smart Chain’s compatibility with the Ethereum Virtual Machine (EVM) and its interoperability with ETH-native protocols have turned it into a popular destination for DeFi DApps.
Yield farming on Binance Smart Chain (BSC) has witnessed rapid growth and several protocols have been grateful participants with many more still on the line.
Below, you will find five of the most popular yield farms on BSC.
PancakeSwap is the leading automated market maker and the first billion-dollar project on Binance Smart Chain. The decentralized exchange protocol has surged to the top platform the DeFi space with a current 24-hr trading volume of $400M, leaving incumbents like Uniswap and Sushiswap trailing.
Its native token, which was at $0.48 at inception, is currently trading at $13.
Liquidity providers can deposit cryptoassets into PancakeSwap liquidity pools to earn fees and liquidity mining rewards. In return for providing liquidity, they receive liquidity pool tokens (also called FLIP tokens), which can be staked to earn CAKE.
Its yield farm remains ever rich as well with more than 10 pairs yielding an annual APR of 300%+ at the time of writing.
Interest earned can be used as collateral to borrow more digital assets or to mint VAI (Venus’s stablecoin).
Launched in October 2020, Venus has gone on to become one of the largest protocols on BSC with a 24-hr volume of $237M.
Bearn seeks to provide an extensive yield farming ecosystem and to improve the interoperability between BSC and the Ethereum blockchain.
The cross-chain protocol’s new product, bVault, offers double/triple reward systems. Vault holders get to earn 3% of newly minted BDO in addition to high APYs and accrued fees on farmed assets.
Bearn’s liquidity pools remain high as well with their ETH farm generating more than 1,000% APY and BSC farms with over 300% APYs (at the time of writing). Its native token has surged from just $15.22 in December to an ATH of $984.50 with a current price of $507.
4. Monster Slayer
Monster Slayer is building a decentralized NFT game that leverages an internal stablecoin as currency. Coming off the back of projects like Basis, bDollar, and MITH, the three-token protocol has a mission to create an exhaustive ecosystem with top-notch reward and shareholder systems.
Monster Slayer’s total value locked (TVL) is over $8B, and consists of three tokens, namely:
Monster Slayer Cash (MSC): The NFT designed as a medium of exchange. It is pegged at 1 $BUSD and must always remain so. Built-in mechanisms such as minting and burning MSC tokens serve to maintain the price at $1BUSD.
Monster Slayer Share (MSS): It roughly represents 1 MSC and is used to regulate the price of MSC. MSS holders get rewarded with MSC whenever more MSC tokens get minted due to a rise in price relative to 1 $BUSD. Also, holders of MSS are stakeholders and can vote on or suggest definitive plans to improve the protocol.
Monster Slayer Bond (MSB): Like MSS, MSB is used to regulate the price of MSC. In a situation where MSC’s price falls relative to 1 $BUSD, MSB can be bought by users to take some MSC out of circulation, a process referred to as burning. Holders of MSB can redeem their token for MSC at price normalcy or expansion for profit.
Autofarm is on a mission to aggregate yields and facilitate decentralized exchange in the most seamless way possible on Binance Smart Chain.
The two-month-old protocol has witnessed unprecedented growth, with a total value locked of $1.3B, more than $20.7M 24-hr trading volume, and a $124M market cap.
As you would predict, its yield farms are plentiful. There are over 30 liquidity pools with substantial APYs.
The Bottom Line
As with any project, yield farming is laden with risks — ranging from smart contract risks to liquidation and exit scams. DeFi users must be well aware of these risks to avoid preventable losses.
Also, as much as APY is a valid index for assessing a DeFi yield farm, it is volatile and token prices can fluctuate aggressively.
But you are happy to take risks, yield farming may be something for you.