Avalanche has some of the best opportunities for yield farmers to deploy stablecoins to earn high yields. In this guide, we will walk you through the 5 best stablecoin yield farms on the AVAX network to earn income on your USDC, USDT and DAI.
If you need to bridge your assets to the Avalanche network, you can read our ETH to AVAX bridging guide to get started.
- Earn up to 10% APY on AVAX stablecoin deposits.
- Secure platform for Cross-Chain stablecoin swaps.
- Compatible with 6 different EVM-based Networks.
1. Stargate Finance
Stargate Finance is a new multi-chain stableswap protocol that was released by the LayerZero labs team. It has the same protocol design as Curve or Platypus, however it operates cross-chain. This means you can swap USDC from ETH to BNB or AVAX or Optimism or many other networks.
Stargate Finance is currently offering up to 10% APY on stable coins staked in the Avalanche network. These might dilute over time as the heavy inflation schedule cools off. For more information, read our Stargate Finance Review.
2. Trader Joe
Trader Joe is the largest and most trusted DeFi application on the Avalanche network. They have over $1 Billion in value locked in their protocol across Trader Joe Lending, Trader Joe Staking and Trader Joe Liquidity Pools. Their LP stablecoin farms offer a reliable 10% APY for USDC or USDT.
You can also earn 7% APY depositing stable coins into Trader Joe Lend, which is their lending protocol that is similar in design to AAVE or Compound.
3. Pangolin DEX
Pangolin is another trusted DeFi application and Decentralized Exchange on the AVAX network. They offer similar stablecoin LP farms as Trader Joe with slightly less rewards at 7-8% APY. Pangolin sometimes has boosted yield farming programs where APYs can spike to 20-30% on UST, USDC or USDT.
4. Benqi Lending
Benqi is the largest money market & Compound fork on the Avalanche network with $1 Billion in TVL for Wrapped Bitcoin, Ethereum, AVAX, stablecoins and more. They offer the ability to deposit stablecoins and earn 7% - while also borrowing stablecoins to redeposit and create leverage.
5. Platypus Finance
Platypus Finance is a stablecoin swap and fork of Curve Finance that allows traders to swap against USDC, USDT, DAI and MIM for low fees and minimal slippage.
The Platypus Finance protocol offers the most consistent yields for stable coins that range between 0-5% APY depending on your vePTP boost. To learn more about the farming mechanics, read our Platypus Finance Review.
What is Avalanche AVAX Yield Farming?
Yield Farming on Avalanche is when you deposit cryptocurrencies like AVAX, stablecoins or protocol tokens like Trader Joe to earn a yield. Generally, protocols like the ones listed above will ask users to stake assets in order to receive protocol revenues.
This means that when you stake stable coins on a platform like Platypus Finance, the yield you're receiving is from fees generated when other people are using Platypus Finance to swap stables. Yield Farming on Avalanche is ultimately a safe way to earn passive income from cryptocurrencies.
What is Avalanche?
Avalanche is a decentralized finance platform that enables users to trade a variety of digital assets in a secure and efficient manner. The platform utilizes a unique consensus mechanism that allows for near-instant transaction speeds and low fees. Additionally, Avalanche provides an ecosystem of tools and services that allow users to create and issue their own digital assets.
Ava Labs is the company behind Avalanche. Ava Labs was founded by a team of experienced entrepreneurs, engineers, and academics, led by Cornell professor Emin Gün Sirer. The company's mission is to build the next-generation of open finance protocols and applications.
Final Thoughts
Yield farming on Avalanche is a great way to maximize your returns and diversify across multiple protocols. The amount of yield you can expect depends largely on the amount of liquidity, but with the wide variety of projects and tokens available for staking, you can easily find the best yields for your portfolio. Be sure to read our reviews and do your own research before jumping in!
I am a Finance graduate and market analyst that enjoys researching and writing about digital assets and how they intersect with Macro.
