While cryptocurrency markets have been red hot and gaining in value, demand for certain assets and liquidity has grown massive. At the same time, a myriad of crypto proponents are chasing significant returns by hunting for liquidity pools with colossal yields. These days certain decentralized finance (defi) applications can give a yearly ROI upwards of 100-400% in some cases depending on the applications leveraged.
Pools of Crypto Liquidity Are Growing
During the last year and a half, decentralized finance (defi) has grown more robust and today there’s $46.24 billion total value locked in defi apps, according to defipulse stats. While digital currencies like bitcoin (BTC), ethereum (ETH), and many other crypto assets have seen significant gains, people are also getting large returns for providing liquidity. Additionally, thanks to Web3 wallets like Metamask, providing liquidity without dealing with a centralized third-party is key to decentralized finance.
Last month, Bitcoin.com reported on crypto earnings, in comparison to a traditional savings account. The report noted how people can earn up to 17% annually using a variety of centralized and decentralized applications. 17% is a nice return and it outperforms the banks’ interest rates (0.50% to 0.66%) by a long shot, however, there are other cryptocurrency applications with much deeper yields.
It should be known that the APRs noted on both Badger, Demex and many other defi apps like Sushiswap and Uniswap, provide ROIs for liquidity providers but APRs are just estimations. An ROI rate per annum can change indefinitely, depending on the weight of pools and cryptocurrency price fluctuations. There are also other risks as well, like the losses that can incur if ethereum (ETH) theoretically had a sudden and deep price crash. Defi applications must be reviewed before they are tried and there is plenty of documentation concerning these platforms in comprehensive detail strewn across the web.
Switcheo’s Decentralized Mercantile Exchange
The first platform that offers a considerable ROI can be found by utilizing the pools housed on Demex, an application that runs on the Switcheo Tradehub. Currently, without any commit duration, liquidity providers can get 228% leveraging the NNEO/ETH pool. Other top pools include the USDC/WBTC pool (113% APR), USDC/SWTH (101% APR), and ETH/SWTH (79.9% APR).
These annual percentage rates can fluctuate depending…