Is Lending over on Aave worth while for low budget investors, let’s say 500 to a 1000 Dollars Canadian?
Are there any other platforms worth considering?
Should I be Staking LP Tokens over on a DEX like Waves or else where instead, maybe I should be using Kashi… maybe a diverse of both via borrowing?
My desire is to get into Yield Farming/Lending, both lowish risk and high return suggestions will fulfill my curiosity to research them. I understand these DeFi Platforms and Systems I just don’t know where to start.
Any suggestions are greatly welcome, I’m here to learn and ask questions! 😊
You can’t have both low risk and high return in defi.
Your best bet is 19.5% on ust.
Stay away from ethereum network when you have small capital.
I’ve been running with a few low-capital options:
* Osmosis – returns ~0.25% daily on total capital locked on 14-day unbonds (e.g. $1000 will return $2.50 in OSMO)
* Orca – can return about ~$1.35 on $1,000 if you lock it in one pool (wBTC – ORCA, ORCA – USDT, etc.), extremely liquid compared to Osmosis
There are a few other AMM-DEXs like Saber, Raydium, Astroswap, which all offer some pretty standard 2-asset LP. Anchor is the most reliable for now.
Do note that the question you’re asking is “where is the alpha?” (asymmetric risk / reward) which is definitely possible but you have to put some work into it, lol.
With that balance u need to get to a chain with low fees. Arbitrum if you want a real L2. Polygon or Avalanche otherwise. Id go to Polygon and be aiming for 8%ish on stables in the current environment for less risky options.
The real benefit of Aave imo is borrowing against your assets. If you have no interest in doing that, a lot of more centralized options will give you much higher yield than most defi money markets will.
For stablecoins, I’m using Anchor. Protocol feels safe enough for me and the yields are up my alley. $1k in my 0.01% APR bank account is literally ten cents a year. $1K in Anchor is like ~$195 a year. No brainer for me. I’m willing to take the risk on it and put my “lose my job emergency funds” there.
what level of apys are u looking for?