DeFi APY Comparator
Compare Annual Percentage Yields (APY) across different DeFi protocols and yield farming opportunities. Analyze staking, lending, and liquidity pool returns to find the best opportunities for your crypto assets.
Yield Comparison
Add protocols above to see comparison
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Risk Analysis
Avg Risk Score: N/A
IL Exposure: N/A
Smart Contract Risk: Medium
Note: Higher yields often mean higher risk
Understanding DeFi Yield Comparison
Decentralized Finance (DeFi) offers various ways to earn yields on crypto assets through lending, liquidity provision, staking, and yield farming. Comparing APYs across different protocols helps maximize returns while managing risk.
Major DeFi Protocols
| Protocol | Primary Function | Typical APY Range | Risk Level |
|---|---|---|---|
| Aave | Lending/Borrowing | 2-12% | Medium |
| Compound | Lending/Borrowing | 2-10% | Medium |
| Uniswap | DEX Liquidity | 10-100% | High |
| Curve | Stablecoin DEX | 5-25% | Medium |
| Yearn Finance | Yield Optimization | 5-30% | Medium-High |
| Lido | Liquid Staking | 4-8% | Medium |
Yield Farming Strategies
- Lending: Earn interest by lending assets to borrowers
- Liquidity Provision: Provide trading liquidity and earn trading fees
- Staking: Lock tokens to support network and earn rewards
- Yield Farming: Move funds between protocols for highest yields
- Liquid Staking: Stake assets while maintaining liquidity
- Options Farming: Provide liquidity for options protocols
Risk Factors in DeFi
- Smart Contract Risk: Code vulnerabilities and exploits
- Impermanent Loss: Value loss in liquidity pools vs. holding
- Liquidity Risk: Difficulty withdrawing funds
- Platform Risk: Protocol failures or rug pulls
- Regulatory Risk: Changes in crypto regulations
- Volatility Risk: Crypto price fluctuations
Impermanent Loss
Impermanent loss occurs when providing liquidity to automated market makers. It happens when the price ratio of pooled assets changes significantly.
- Calculation: Compare pool value vs. holding both assets
- Larger Price Moves: Greater impermanent loss
- Stable Pairs: Lower risk (e.g., USDC/USDT)
- Volatile Pairs: Higher risk (e.g., ETH/BTC)
- Time Factor: Longer holding increases risk
Gas Fees Impact
Gas fees on Ethereum and other networks can significantly reduce yields, especially for smaller positions or frequent transactions.
- Transaction Costs: Depositing and withdrawing funds
- Network Congestion: Higher fees during peak usage
- Layer 2 Solutions: Lower fees on scaling solutions
- Alternative Chains: BSC, Polygon, Arbitrum have lower fees
- Fee Optimization: Batch transactions to reduce costs
APY vs. APR
- APR: Annual Percentage Rate (simple interest)
- APY: Annual Percentage Yield (compound interest)
- DeFi Standard: APY is more common for accuracy
- Compounding: APY accounts for compounding effects
- Comparison: Use APY for accurate yield comparison
Yield Optimization Strategies
- Diversification: Spread across multiple protocols
- Rebalancing: Move to higher yielding opportunities
- Compounding: Reinvest rewards automatically
- Risk Management: Don't invest more than you can lose
- Research: Check protocol security and track record
- Tax Planning: Consider tax implications of rewards
DeFi Security Best Practices
- Smart Contract Audits: Check for professional audits
- Liquidity Depth: Ensure sufficient liquidity for withdrawals
- Team Reputation: Research development team background
- Community Size: Larger communities often safer
- Insurance Coverage: Some protocols offer coverage
- Gradual Deployment: Start small and increase exposure
Important: DeFi yields can change rapidly and involve significant risks including smart contract vulnerabilities, impermanent loss, and platform failures. Always do your own research (DYOR) and never invest more than you can afford to lose. High yields often come with high risks.