Best yield farming strategies?

The problem with a lot of these strategies is the unknown risk.

​

Not many people know or are aware what the exact risks of each strategy are. Even if the yield is high, if you lose the capital, then what's the point?

What is the difference between yield famring and staking then?

6 days late ser but CRYSTAL farms on DFK still printing 2k% APY. Can hedge 50% if you do smth like CRYSTAL/AVAX.

​

Otherwise i would look to earning options premium via selling covered calls as advertised by Friktion Labs, Katana (both on Solana) and Dopex.

I prefer farms that can be hedged against loss of value of the underlying tokens.

​

For example, UST-AVAX LP on Beefy Finance.

51% yield as of today, and the AVAX part can be hedged with short-selling AVAX-PERP. Of course, the funding rates also need to be taken into consideration (AVAX-PERP averaging -12.84% over the past week), so the actual yield should be closer to 38%

​

Or Leveraged Farms on platforms such as Alpha Homora, where you can borrow the variable asset (e.g. AVAX) to effectively hedge against price fluctuation.

50% yield as of today, USDC-AVAX with 2x leverage and borrowing against AVAX