Weekly Staking and Yield Farming Review

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Another week, another staking review. This week we take a look at three existing staking platforms and review the week's most notable developments in the staking industry.

Notable developments

Pancakeswap continued to offer more conservative APRs compared to previous weeks with the exception of its ‘Community Farms’. These are 7 day farms which qualifying projects can bid for the right to host. Light-BNB was paying a 335% APR. These are ultra high risk projects and you should check out the fundamentals before investing.

Sushi increased its APR for staking its currency from 10.8% to 16.5%, still substantially behind CAKE which is offering a whopping 77%. It was also offering a tasty 857% for farming MASK-USDC. Mask Network is a peer to peer messaging app with a valuation of over $1 billion. It's a generous return if you believe in the future of MASK.

Aave's best return was 87,000% in exchange for staking the $200 million ‘smart commodity money’ platform Ampleforth compared to a more conservative 20% for staking Decentraland, the virtual reality world operator.

Curve’s returns continue to become more conservative with its highest rate dropping from 7.9% to 5.3%. There is a definite balance to be had between high risk and high return and low risk low return, Last week we looked at Compounds 2.2% APR for staking its native token and suggested this did not provide a sufficient risk premium. We believe the same could be said for Curve’s current line up of APRs. Staking crypto is high risk, returns must reflect this fact - offering 0.43% for staking RenBTC, a synthetic asset that represents the value of BTC, just doesn't cover the risk involved in our opinion.

Auto’s most attractive APR was for farming CHESS-USDC paying a massive 729%. CHESS is a tokenized asset management and derivatives trading protocol with a fully diluted market cap of $959 million and TVL of $1.5 billion. This could be worth further investigation.

You can view this week’s table of APRs from leading platforms here - you can also subscribe to this free newsletter by following the link

Platform reviews

Moonstake

This is a platform a community member asked us to review. Moonstake is a basic staking platform allowing you to stake only its native token. There is no indication of what APR you would earn if you were brave enough to buy into it’s token, not helped by the fact that Moonstake is not listed on either of the main listing platforms. You can view the platform yourself at https://Moonstake.finance. Why someone would buy tokens in this project and stake them on a platform which looks like it was designed by a three year old is beyond us. Avoid!

Sovryn - Sovryn price, SOV chart, market cap, and info | CoinGecko

Sovryn is a non-custodial and permission-less smart contract based system for bitcoin lending, borrowing and margin trading. Sovryn is live on RSK mainnet and allows users to trade Bitcoin natively and permissionless on a decentralized application.

Sovryn has a platform that isn’t exactly easy for the average crypto enthusiast to navigate. It however is one of the few platforms that focuses on BTC staking which makes it stand out from the many other metoo platforms in this space. It’s fully diluted valuation of $2 billion compared to only $150 million of TVL makes its cryptocurrency grossly overvalued in our opinion. However it’s platform is worth further investigation. It’s conservative APRs and complex user interface makes this one for the professionals.

Okcoin

Okcoin is a digital asset trading platform, established in 2013 by Star Xu in Beijing, China that offers fiat trading with cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin) for individuals and professionals. Their mission is to create an efficient, reliable and secure platform that removes any trading barriers globally. That is the background. So let’s examine the platform.

It’s two headline staking deals are Miamicoin to earn STX and STX to earn BTC.

The first pays a 430% APY and the second 10%. STX or Stacks is the common denominator in both of these offers. STX has a fully diluted valuation of nearly $4 billion with very little upside for the new investor. Miamicoin is a community coin on the Stacks chain. Both of these options, in our opinion, are best avoided.

Amongst their other offers, staking DOT for a 17.64% APR seems a decent deal if you are a believer in the future of Polkadot as a protocol.

Okcoin is an easy to navigate platform but in general the returns do not seem to reflect the risk investors are taking on.

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No Financial Advice

This report does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment.