You put your money in, and the protocol you put it in automatically (and permissionlessly, with no trusted intermediaries) gets to work in fetching you attractive returns via that investment.
This is the promise of Ethereum’s rising “yield aggregator” projects. You deposit your tokens into these dApps, and thereafter they proceed to put these assets to use throughout decentralized finance to generate you the best profits possible according to specific DeFi strategies.
In today’s post, then, let’s survey the top 10 yield aggregator projects atop Ethereum so we can get a better feel for how this rising scene is working in the here and now.
- Harvest Finance is currently the largest yield aggregator in DeFi and the 9th largest dApp in general with its total value locked (TVL) at $659.7 million presently.
- The protocol offers a straightforward way for yield farmers to generate profits by depositing tokens like Dai, USDC, and beyond.
- When users deposit funds in Harvest Finance they receive fAssets (e.g. fDai or fUSDC) that can be redeemed later for yield farming revenues.
- Last month, Harvest Finance was the victim of a flash loan attack that saw the protocol drained of ~$30 million worth of crypto. The project’s made a bit of a comeback since then, but the incident is certainly still fresh.
- Yearn is arguably DeFi’s most darling yield aggregator at the moment; while its $419 million TVL is smaller than Harvest Finance’s right now, the Yearn project has organically developed a community whose passion and collaborations are almost totally unparalleled in DeFi. To this end, community and talent are Yearn’s X factors.
- Yearn uses specialized strategies via “Vaults” that give users various ways to approach generating DeFi yields. The project is notably on the cusp of releasing its optimized V2 Vaults system, where yield generation will be improved and streamlined.
- Yield aggregator project Value DeFi is currently the 31st largest dApp…