Weekly Staking and Yield Farming Review — 25th November 2021 - Weekly Staking and Yield Farming Review

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The words on the lips of anyone with an interest in DeFi is, regulation. The country leading the charge is of course the US. Some DeFi projects such as 1Inch and Harvest have already restricted US investors from using their platform, more are bound to follow. The US’s SEC considers lending a regulated activity involving the transfer of securities. Many in the industry such as Coinbase disagree with this view however they are powerless to do anything about it unless they want to take on the SEC in court which is not going to happen. Someone will at some point be forced to make a stand which will finally clarify this contentious point but in the meantime investors should be on notice that these platforms are on borrowed time in their current form.

The platforms that choose to continue targeting US investors without engaging with regulators are not the kind of platforms which a sensible investor should be investing in. Investors should look for platforms that are working with regulators not against them. The oversized APRs may hold up but remember they are being paid in the native currency of the platform in many cases and if the investment proposition of the platform is questionable then the tokens value is also questionable. This isn't going to happen overnight but investors must plan ahead.

This week we are continuing our theme of reviewing DeFi projects recommended by our community. We have three for you today and of course we have our table of APRs from leading staking and yield farming platforms.

Weekly table of APRs from leading staking and yield farming platforms

A few weeks ago we suggested that the sky high returns from the likes of Pancakeswap were over. That reduction in APRs was obviously a blip as APRs returned to their previous astronomical levels with Pancakeswap’s highest APR of 112,000% for BCOIN-BUSD. BCOIN is a play to earn game with a market cap of $660 million and 24 hour volume of $15 million. If you are a fan of this project then it is probably worth a closer look. Aave is offering 83,000% on staking Ampleforth, a $290 million project with healthy volume, that compares to its next highest return of 21%, go figure!

Balancer is offering a 327% APR for WETH-NOTE. NOTE or Notional Finance is a DeFi platform with a fully diluted market cap of $750 million compared to a TVL of $947 million. On the face of it it is not an unreasonable bet.

Finally it was interesting to note that you can earn 77% by staking CAKE on its own platform compared to 68% on Venus which seems a more attractive proposition than staking SUHI for a lousy 18.75%.

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Platform reviews

Dot Finance

Dot Finance is a new DeFi platform designed to incentivize the growth of the Polkadot ecosystem. Dot Finance is building on top of Polkadot’s architecture. Its products include; auto compounding for liquidity mining, a grant program to support new projects on the dot ecosystem, an index for polka tokens and a Polka dex aggregator.

Our opinion

Dot.Finance’s objective is to open up investing to the mainstream. It achieves this with an easy to navigate platform. It is offering 19% for staking its token PINK with returns being paid in BNB and 25% with returns paid in PINK. It offers a 109% if you farm PINK and BNB with returns paid in PINK. So the question is, does PINK represent a good investment? With a market cap of $17 million and TVL of only $4 million the answer to that question is a resounding no.

Spookyswap

Spookyswap is a decentralized cryptocurrency exchange on the Fantom Opera network. They claim to be invested in building a strong foundation with their BOO token as a governance token, diverse farms, a built in bridge, built in limit orders and user-centered service.

Our opinion

Taking the statistics alone this project looks worthy of closer attention. Its token’s market value is $345 million, fully diluted, compared to a TVL of $715 million and 24 hour volume of over $20 million. Now let's look at the platform. By staking BOO you can earn 23.6%, that isn't a bad return considering the project's fundamentals. Most of its farming pairs involve the $8 billion smart contract platform Fantom (FTM). If you believe in the future of FTM then its 110% APR with the pair USDC and FTM seems a good one. There is no doubt this is a quality platform however investors should feel comfortable with the future of the underlying blockchain before investing.

Unoswap

Unos.finance is a permission-less decentralized DeFi protocol that combines spot trading services and money markets with lending and borrowing services through smart contracts.

Our opinion

This platform was flagged up by a few people however rather than waste your time and ours writing a load of fluff we will sum it up very quickly, a pile of crap. Avoid. Despite talking about transparency there is no information on the platform’s TVL and no trading volume in its native token. To cap it all, its market value is $17,000. It is either one of the most undervalued cryptocurrencies on the market or something else…

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