The Avalanche ecosystem is flourishing. DeFi and gaming protocols keep building and presenting opportunities for investors. There are many ways to play in this ecosystem and one popular way is yield farming crypto.
For those who are new, yield farming is the process of investing your tokens or NFTs in protocols (primarily DeFi platforms) to generate yield. The activities include joining liquidity pools, staking, borrowing or lending.
Every blockchain ecosystem has numerous yield farming opportunities. Protocols typically create these opportunities either to 1) attract liquidity, 2) incentivize HODLing or to 3) distribute token ownership to a wider base in an effort to decentralize. They provide incremental yield by awarding tokens to depositors (or stakers).
In this weekly report, I will break down yield farming opportunities in the AVAX gaming ecosystem.
One of the main ways to generate yield using gaming tokens is to invest in liquidity pools (LP) and then depositing your LP tokens into a “farm” operated by a DEX. I scanned the farms of DEXs and auto compounders on Avalanche and came up with the following list of opportunities.
The best bet yield comes from DCAR, the token of Dragon Crypto Gaming which recently had an IDO through Avalaunch. The second best is FLY, the gaming token of Hopper Game. Here’s the link to Trader Joe and Pangolin farms. You must pair these tokens with their counterparts outlined in the “Liq. Pair” column in order to receive the rewarding yield.
Games offer staking opportunities directly from their website. Here is what I found based on the AVAX ecosystem.
I only found CRA and IME staking opportunities. The most lucrative is IME, which starts at 30%. Note that gaming protocols typically require you to lock your assets for a certain period of time, which I’ve included in the chart as “Locked Days.” Here are the links to Crabada’s and Imperium Empires’ staking sites.
Risks and Disclaimer
Yield farming is risky. Besides the volatility in the price of the token or NFT, liquidity pools introduce risk of impermanent or sometimes permanent loss. The value in the incentive tokens might fluctuate, so your ultimate APY might be different than what was initially quoted. This article isn’t financial advice, you should always do your own research before investing.
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