The List: Top 12 the Tezos Yield Farming projects
Tezos has been a dark horse of crypto for a long time. An advanced blockchain with liquid PoS and flexible on-chain governance, it has not seen as much adoption as some of its forebears, like Ethereum. But with the advance of DeFi the trend is changing and more and more investors enter the Tezos ecosystem looking for opportunities.
Tezos nascent DeFi ecosystem is seeing its early stages of explosive development and many investors see it as a ripe moment to jump in for the long game.
Over the last year, a number of DeFi projects appeared on Tezos, and along with them came Tezos yield farms. Tezos farming is still very young, and it’s not too much information on how safe these projects are. Always, DYOR before interaction with any project below.
Here we shall recount the few Farms that exist in the ecosystem to this day:
1. Plenty DeFi
The market’s maverick. After just a few months of existence Plenty boasts $30 million TVL and has by far the largest liquidity pool on QuipuSwap, the ecosystem’s main trading platform. The team has plans to launch auto compounding, governance and Initial Farm Offerings. Some pools on the Plenty have APY 2000%+ .
Crunchy provides a solution: Tezos DeFi as a Service. Anyone can create their farm on Crunchy that will be available to the public in seconds. As a result, users may find countless farms. However, most of them propose to mine useless tokens. The team plans to launch Liquidity lockers, token blenders, vesting contracts, and much more. The project uses in its work two native tokens Crunchy (the means of payment) crDAO (governance token). The current TVL on QuipuSwap is $1.88M.
Wrap protocol is a bridge between Ethereum and Tezos, and it allows the conversion of ERC-20 tokens to FA2.O tokens. The native token on the platform is WRAP, which gives you Wrap Protocol governance power.
The project proposes two types of mining:
- Liquidity mining, when you stake XTZ-WRAP token and earn new WRAP tokens, APY 640%
- Farming, when you stake WRAP and earn commissions in Wrapped ERC-20 tokens from the service usage, APY 28%-73%.
At the moment, Wrap protocol is the only reliable bridge between two blockchains and it will be more popular with the increasing interest in Tezos.
4. Magic Button
The game concept of Magic Button is as easy as pie: each player puts a coin to click the button, and when the countdown expires, the last one gets all tokens in the pool. As a reward for each click a user gets MAGs tokens that may be used in staking. MAG tokens allow holders to earn commissions from the game, farm more tokens or stake them in other projects. The current MAG pool has APR 4000+ % and a pool prize 8600 TEZ.
5. Alien’s Farm
Another project was developed by the creators of Magic Button. Aliens’s Farm is an open-source solution that lets users earn tokens by staking, yield farming, and in the future, vaulting Tezos-based tokens. The team has plans to launch their AMM, NFT marketplace, create governance, add deflationary mechanics, and much more. The native token in the project is PAUL and it can be mined by staking liquidity on the website. The current APY is more than 4000%+, because the farm was launched few days ago.
6. Spacefarm
Also, a new project that proposes Yield Farming pools. The main idea is to create a new DEX, where 0.05% trading fees will be used to buy back FLAME tokens and burn them to protect users from inflation. The current APR in the pools is 90-170%.
7. HeraNetwork
Hera Network is the De-Fi hub of Tezos that has three farms with HERA tokens. APR in the pools is 1600-8000%. At the moment, the project has betting and lottery sections. Other sections are under development.
8. SmartLink
The team is developing the decentralized escrow protocol, with the purpose of providing trust-as-a-service, eliminating the need for traditional escrow service. In the dapp you may stake SMAK tokens and get 20% APR with flexible staking ad 70% APR with 90 days funds lockup.
9. SalsaDAO
One of the oldest Tezos farms, Salsa has built quite an infrastructure. Apart from the farm, SalsaDAO has a Taco shop (NFT market) and a crypto Casino, both with their own separate tokens. The Salsa team has also announced an upcoming DEX SpicySwap.
10. FarmSoil
FarmSoil is another old Farm project on Tezos. The main idea is farming and nothing more. You will not find usage cases for FARM tokens, except farming other tokens on crunchy.
11. Sebuh
Created by Sebuh, a long-standing Tezos-enthusiast famous for his eccentricity and involvement in the Tezos community Life. The farm has basic farming features and pays rewards in SEBs, farm’s governance tokens.
12. Freibier
A unique feature of the service is airdrops. All holders of their native token $CVZA have a chance to get a token airdrop. The Farming section is coming soon.
Potential Risks
Of course, farming is not all fun and games and bears a number of inherent risks.
Price fluctuations
A fair warning for all crypto holders. All tokens are volatile and a sharp change of trend can make a dent in one’s wallet.
Impermanent loss
A price surge of a token within the pool can also change the pool share token’s value. Ironically, unlike traders, for liquidity providers price spikes can be quite dangerous.
General security risks
Farms are coded by people, and people make mistakes, sometimes, deliberately. Enough said.
Conclusion
Ethereum has carried the DeFi torch for a long time and was perhaps the prime reason many Bitcoin maximalists finally gained some interest in altcoins. But due to oversaturation of the market and rising fees investors are now looking at other growing ecosystems. Tezos is one such ecosystem that has seen rapid growth, pressured by rising demand. Thanks to the DeFi hype, Tezos’ financial ecosystem is today developing the fastest since its inception.
