988%, 110%, 47%, or 40% Per Annum: the Most Profitable Tezos Farms in 2023
Tezos price is back above $1, and Tezos' DeFi apps have pushed NFT marketplaces out of the top 5 in terms of volume, the TzKT explorer data suggests.
Let’s take a look at the most profitable passive income opportunities from Tezos’ most popular DeFi projects.
What Impacts Farm Profitability?
The farm creator contributes tokens to reward the stakers regularly. This is a fixed value, e.g., the farm distributes 100 AAA tokens daily to the delegators.
The annual percentage rate (APR) is defined as the ratio of the value of LPs contributed to the value of the remuneration received for the year. If the value of the annual reward is $1,000 and delegators contributed LPs worth $2000, the APR would be 50%.
Because delegators are constantly depositing and withdrawing LPs and the price of tokens goes up and down, the annual return is ever-changing. Therefore, protocols may indicate an average APR per week or month.
If a farm claims to have a 100% APR, it, in fact, does not guarantee you will earn a 100% APR. Farming returns will exceed staking returns or earnings from trading fees on liquidity deposits.
Plenty.network: up to 988% APR
Materia (MTRIA) is a native token of the NFT marketplace Versum. The MTRIA/ctez pool will yield 988% APR in PLY. Still, one must heed the mechanics of Plenty.network: APR is calculated for a single epoch of 7 days. Next week’s yield may change, so there won’t be a 1,000% APR all year round.
In addition to MTRIA/ctez, there are other pools with high returns: QUIPU/ctez with 543% APR, uUSD/YOU with 332% APR, and kUSD/ctez with 249% APR.
How to farm? Go to the pools page, click Manage, and deposit liquidity in the newly open window. Then switch to the Staking tab and stake the PNLPs that you got.
Plenty.network will provide rewards in the PLY token. If you want to earn trading commissions and bribes, you need to mint or buy a veNFT. Learn more about it all from our Plenty.network guide.
QuipuSwap: up to 110% APR
QuipuSwap runs ten farms with APRs ranging from 12% in kUSD to 110% in QUIPU.
The most profitable farms (abBUSD/tez and apUSDC/tez) are long-term. You will be able to collect your full reward only after 180 days. The vesting period is specified in the farm parameters.
If you want to collect the reward early, you will receive only a part of it.
How to farm? Deposit the liquidity in the pool you have in mind and then stake the LP tokens in the farm. Rewards and trading fees will accrue in the farm contract until you collect them.
SpicySwap (Matter DeFi): up to 47% APY in MTTR
Matter DeFi is a site with farms for SpicySwap LP tokens, a part of the SalsaDAO ecosystem. The most profitable farm for the USDtz/WTZ pool accrues 47% per annum in MTTR tokens.
Matter DeFi is unique for having recipes marked with a white “+tz” button. A recipe allows one to batch tez conversion in the tokens for the pool, liquidity depositing, and SSLP staking in a single transaction to save time and transaction fees.
How to farm? Use the recipe for automatic SSLP staking or manually deposit liquidity in the pool of your choice and stake SSLP on Matter DeFi.
Youves: up to 40% APR in YOU
Youves has two ways to make passive income: staking YOU, uUSD, and uBTC with rewards in the same tokens, plus staking LP tokens from Youves stableswaps and QuipuSwap and Plenty pools with rewards in YOU.
The highest yield is 40% p.a. in the uUSD/QUIPU farm. But if you prefer stablecoins and Bitcoin, you can stash uBTC at 10% or uUSD at 16% per annum.
How to farm? Go to the required DEX farm and deposit liquidity into the pool of your choice. Then go to the Youves Earn page and stake the LP tokens. To earn uUSD, uBTC, or YOU tokens, stake them directly in Youves Earn.
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