Are there any stable DeFi Investments Without Exposure to Farm Tokens

I’ve been deep in DeFi for a few months now, and my overall experience with liquidity pools and farming hasn’t been all that positive.

Most non-stable tokens with high yields tend to drop in value faster than you will be compensated in APY, as the tokens generally don’t have much utility backing them.

Pairs which include more high-quality assets (i.e. coins like AVAX, LUNA, etc) may appreciate over time, but if they do, you are often more likely to end up worse off than just holding the underlying asset, due to impermanent loss being higher than the yield.

Stablecoin pairs are best as there is no IL, but the yields are relatively modest. Very rarely are the returns higher than Anchor on Terra. And there’s always the issue of exposure to farm tokens, which need to be constantly sold off, requiring management and eating away at the yields.

Yield optimisers can improve the situation, but in my experience when you account for fees, transfers, and exposure to tokens, you have to farm for a long time just to break even, especially with constantly dropping APYs. Pooling and farming just doesn’t seem that lucrative.

These days, my overall investment strategy has evolved to holding a percentage in Anchor for constant, stable growth, and reserving a modest amount for trading. I feel like that’s the best approach for me as it assures constant growth with some opportunity for high gains on some investments, while limiting risk and volatility.

So my question – is there anything else that’s like Anchor protocol that generates consistent yields in the 20% range on a single stable asset, while not exposing you to farm tokens, or high fees? The anchor model which utilises a treasury seems really logical to me, as the value of your aUST is fixed, and simply grows at a predictable rate.

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25 thoughts on “Are there any stable DeFi Investments Without Exposure to Farm Tokens”

  1. Beefy auto compounds the farm tokens (sells farm token and reinvest in your Lp) so that you don’t be exposed to the farm token in a significant way.

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  2. Yeah i’m a similar boat and pretty agree with your strategy.

    One point for LP is if you find one with non shit coin/stable then it could be good to provide liquidity during a bear market and then removing it when the market starts turnning bull because in this case when selling pressure is higher Impermenant loss will work in your advatange as people will swap the non shit coin for stable and you will end ip with more non shit coin if you exit the LP in time. So its kind of like staking but with better returns.

    Its also worth looking for solid earlyish projects to invest in. Its really hard to do but if you get it right you can get massive gain so obviously you don’t need to invest a large part of budget on that. Gains Network is a potentially good one that i recently found, their tokenomics and platforms are amazing. All details are listed in their docs

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  3. Take time to check out kogefarm.io

    They are the safest and the cheapest autocompounder on the polygon network

    Completed 2 audits

    Have a bug bounty program with immunefi

    Their native token is available at a cheap price compared to the utilities provided

    They have expanded multichain supporting bsc ,fantom and movr network

    Would like to visit and check the website

    [Kogefarm website](https://kogefarm.io/vaults)

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  4. staking coins for revenue share in the protocol. example, locking your CRV for veCRV. or staking your CRV to Convex for CVXCRV. just an example. DYOR.

    for stablecoins – yearn finance, check also beefy finance, see stable LPS, they autocompound some stables there.

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  5. My solution is some Cefis that have fixed (to some extent) APY’s (usually 11, 12%, one has 15%). It’s still pretty great IMO and you don’t have to monitor it. Downside is many Cefis are boomers and accept only erc-20 and btc mainnet deposits but getting around it is an art of it’s own, most of them allow to swap coins so most often you can deposit BTC with low fees and swap to usdc/usdt. The cefis I’m using is vauld, haru investment, hodlnaut, youhodler, for sure there are many others and dyor, but I think those have the nicest apy’s

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  6. It’s definitely hard to find good yields without exposure to farm tokens. It usually pays to be early. For example, when Cronos chain launched you could autocompound your CRO/BTC and CRO/ETH for 500% apy (down to 40% now). When tranquil finance launched you could single sided lend and borrow BTC or ETH for 75% a year (down to 25% now). On METIS a couple of weeks ago you could get 450% APY on METIS/ETH.

    On polygon I’ve been consistently farming matic/BTC, matic/eth, matic/avax and matic/sol for 35% apy, not the best yield but quality coins.

    Keep in mind not all farm tokens are created equal. Jewel for instance was paying out 10,000% APR while at the same time going from $1.20 to $20 in a couple of months. Trader Joe and Spookyswap have also done well, especially when AVAX and FTM were pumping. On average though, most farm tokens just go to zero.

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  7. I suggest you check koge farm because, unlike their competitors that provide their reward tokens as a form of value, kogefarm doesn’t have to.
    Farm Tokens That Actually have value.

    The most Yield. Withdraw at any time.

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  8. Kogefarm is really good option, no farm token exposure, have multi chain support polygon, fantom, bsc and others. Only have fees on profits, never touch your initials assets like other farms.

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  9. What???? you mean the 80% drop on value for PINK, FLARE and SOLAR isn’t good???? Get out!!!! I would order you a taxi to leave but I have no more money because of these garbage tokens in LP’s.

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  10. I had the same doubts. You really need to dig deeper once you find a DeFi that suits you. Right now I’m doing Synapse Protocol, CSS with stablecoins and using my eMoney NGM yielding at around 17%. That’s what I do.

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  11. I’ve reached the same conclusion – the fixed APY of Anchor is hugely attractive. It’s why I’ve also invested in the Abracadabra Degenbox with a conservative leverage / liquidation price.

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  12. Padswap’s DPLP farms pay out in the LP staked e.g usdt/usdc pays in LP usdt/usdc. Same with any coin that launches on their launchpad, they will have a default DPLP farm.

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  13. I trade kogecoin because it has low taxes, it is a stable farm and I like passive income #kogecoin #gokoge #kogefarm I’ve been using kogefarm vaults for a while and compare to the other yield farms it has the most yield, I couldn’t find a better project yet

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  14. I am pretty much on par with everything you have mentioned. I too have been looking for something consistent, without being exposing to farm tokens or high fees. I am not expert at this and just sharing what i have research around but i think the best option is what OP said putting into anchor for consistent 20% or another option would be buying polygon and putting into kogefarm stable LP.

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  15. Beefy finance is super awesome for this reason. You don’t have to mess with any shit coins and it’s super easy.

    Also look at buying the origin dollar, OUSD.

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  16. Only anchor keeps a steady 20%

    Coindix has good data. Look for high base APY in the link here. I’ve filtered for non-ETH chains, over 1m liquidity, stable coins.

    [https://coindix.com/?kind=stable&sort=-apy&tvl=1m&chain=bsc-solana-polygon-terra-avalanche-fantom-celo-cronos-arbitrum-defichain-fuse-osmosis-metis](https://coindix.com/?kind=stable&sort=-apy&tvl=1m&chain=bsc-solana-polygon-terra-avalanche-fantom-celo-cronos-arbitrum-defichain-fuse-osmosis-metis)

    But they’re all variable rates.

    You won’t find fixed 20% anywhere.

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  17. If you’re really been deep in DeFi then you should know about Metria network right? If not, you should do your research about them. Whitelisting of their tokens will be starting very soon! Its a multichain token that will be available in ethereum, polygon, and binance. It also has a wide utility so be sure to research about it.

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  18. There is. Just wait for the best DeFi DEX to implement everything they have in their mind at Kaddex. It is a gas free dex built on KDA, and kadena is the only layer one that scales. Im just glad i found it and that i follow the development trends..u can’t beat innovation, esp. in technology like crypto, that is innovation driven.

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  19. Hodling and saving tokens is still the best way to go. A very good example is saving $POND on Binance. A great way to earn passive income and hodl a token with real long term prospects.

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  20. Yes there is a stable DeFi investment, people are learning each day.
    With this platform you dont really need to lock your asset so you just need to simply hodl it and you can earn 10% if the total transaction fees. Teneo will be able to provide you gains that you are looking for without worrying about your assets.

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