I’ve been trying to get into DeFi for a while so that I can have regular cashflow coming in to buy dips or have for emergencies. I’ve started using LOOP.Market aUST-UST LP for a few days before realising that the rewards come out in LOOP’s protocol token $LOOP. Instead of in just LP tokens which I can then redeem.
Is this common throughout yield farming/DeFi or is this just common to LOOP? I am aware of Anchor Earn with 19.5%APY, which is absolutely astounding as far as interest rates go and I have been using that for a while too. However, I want to be able to utilise the APRs that come with LP farms and was interested in finding platforms that pay in stablecoins or don’t pay out using their own protocol token.
Thank you for any help guys, I want to mainly find LPs involving BTC, ETH, FTM, AVAX, LUNA, USDC, UST and DAI.
8 thoughts on “LP farms that don’t pay out in protocol tokens?”
Most farms have rewards from the swap fees (paid in your LP tokens) and also fees from whichever farm/platform you’re using. If you want to only get the farm tokens your best bet is an auto compounder like beefy. It will sell the rewards for your LP position tokens.
Another autocompounder on AVAX is Yield Yak.
Check out Beefy and Spectrum
Use a yield farm/auto-compounder. They do what you’re looking for.
If you want to look into an option without LP you can look into [midas.investments](https://midas.investments/?p=0157). They pay 23% on ETH, 17% BTC, and 19% on stable. They pay to your account daily and there’s no lockup period so you can withdraw at any time.
I’m really liking the ~50% yield on Sovryn SOV/rBTC farm.
Beefy.finance is your answer
Yes being paid out in a different token than the native platforms token is rare as the APY’s are funded from the inflation of the reward token.
Padswap does have this function through their DPLP farms. The way the farm works for example BTC/DAI farm rewards pay out in BTC/DAI, all projects that use the launchpad come with DPLP farms so if they are on bsc it’s likely half the rewards will be bnb. There is stable coin farms available for this mechanism as well, therefore paying you in stablecoins.
These DPLP farms are meant to be long term as there is a 10% tax on entering and exiting, made up of 7.5% going back into the reward pool creating sustainable farming. The remaining 2.5% goes to a vault that acts as an etf of all of Padswap’s ecosystem, the added benefit is this takes the token out of supply.