10 Best Crypto Yield Farming Platforms for 2023

Yield farming is a great way to earn passive income on idle crypto. While attractive APYs are available, yield farming also comes with its risks.

In this guide, we explore the best yield farming crypto platforms for 2023. We also delve into the finer details of how crypto yield farming works, including the pros and cons of this passive income tool.

The 10 Best Crypto Yield Farming Platforms Ranked

Listed below are the 10 best yield farming crypto platforms in the market today:

  1. eToro – Regulated crypto broker that offers staking income instead of yield farming. Users can buy and sell crypto along with stocks, ETFs, forex, and more.
  2. SushiSwap – Decentralized exchange offering yield farming on 400+ tokens. Offers rates over 100% for high-volatility pairs.
  3. OKX – Large crypto exchange with no KYC requirement. Yield farming available for multiple blockchains, low-cap altcoins, and stablecoins.
  4. Uniswap – Largest decentralized exchange on Ethereum offering high liquidity for yield farming pairs. Compatible with 300+ Web3 and DeFi apps.
  5. PancakeSwap – Binance Smart Chain-based exchange with high yields for BNB and BUSD. Offers higher yields for pairs with native CAKE token.
  6. AAVE – Supports yield farming across Ethereum, Polygon, Avalanche, Optimism, and Arbitrum networks. Also enables crypto staking.
  7. Yearn.finance – All-in-one DeFi platform with yield farming based on Curve protocol. Offers high-yield pairs with Ethereum.
  8. Binance – World’s largest crypto exchange offering high liquidity for yield farming. Also offers staking.
  9. Huobi – Offers dual investment pools offering all-or-nothing yields similar to options. All dual investment pools include USDT.
  10. CropperFinance – Solana-based yield farming platform. Offers very high yields for emerging tokens on the Solana blockchain.

Top Yield Farming Crypto Platforms Reviewed

Selecting the best yield farming crypto platform requires investors to research various factors. This includes the yield farming rates, supported coins, withdrawal terms, and the platform’s reputation.

Below, we review the 10 best yield farming crypto platforms for 2023.

1. eToro – Earn Passive Income on Staking Coins like ETH and ADA

eToro is a regulated broker offering staking tools, a great alternative to yield farming. Why? Yield farming requires investors to deposit two different crypto tokens, while staking requires just one. eToro currently supports three of the best staking coins – Ethereum (ETH), Cardano (ADA), and Tron (TRX). After buying one of these coins on eToro, staking rewards will be applied to the account automatically.

This kicks in after a short grace period. For instance, staking rewards on Tron and Cardano begin after seven and nine days respectively. eToro takes care of the fundamentals behind the scenes, so there is no need to have any prior knowledge of staking. Staking rewards of up to 90% are available depending on the customer’s loyalty tier. We also like that eToro provides a snapshot of the customer’s staking rewards every 24 hours.

etoro staking

This enables customers to keep tabs on how much they are making. eToro distributes the rewards on a monthly basis, directly to the customer’s account balance. Unlike traditional yield farming platforms, eToro is regulated by some of the most reputable financial bodies. This includes FINRA (US), ASIC (Australia), CySEC (Cyprus), and the FCA (UK). This ensures that the customer’s staking balances are always kept safe.

Those without any crypto coins to stake can easily purchase on eToro. The platform accepts many fiat payment types, ranging from e-wallets and bank transfers to debit/credit cards. A small FX fee of 0.5% is applied to all supported payment types. However, deposits made in US dollars will see this fee waived. We also like that eToro requires a minimum deposit of just $10.

etoro crypto

In addition to the three staking coins mentioned above, eToro also supports some of the best altcoins. This includes Ethereum, Litecoin, Bitcoin Cash, and 90 others. eToro also supports some of the best meme coins and best shit coins, so there is a cryptocurrency to suit all investing goals. Also, eToro is among the best brokers to buy stocks and ETFs on a 0% commission basis.

eToro offers superb customer support around the clock via live chat. It also offers one of the best crypto apps on the market.

What We Like

  • Best alternative to yield farming
  • Regulated broker with multiple tier-one licenses
  • Earn passive income on ETH, ADA, and TRX
  • No need to opt-in – rewards paid automatically
  • Withdraw tokens at any given time
  • Buy and sell crypto from just $10
  • USD payments via debit/credit cards and e-wallets are fee-free

Cryptoassets are a highly volatile unregulated investment product.

2. SushiSwap – Decentralized Exchange for Staking and Yield Farming

SushiSwap is widely considered to be among the best yield farming crypto platforms in the market today. This decentralized exchange offers plenty of services, including trading, staking, and yield farming. SushiSwap, built on top of the Ethereum blockchain, supports over 400 tokens. As a decentralized exchange, signing up or providing personal information is not required. Instead, investors can link their crypto wallet to the platform and begin yield farming their preferred pairs.

Plenty of liquidity is available on SushiSwap, currently standing at over $665 million. This gives investors a greater chance of making yield farming gains in a fully-functional marketplace. Regarding yield farming pools, there are hundreds of pairs to choose from. Most are paired with either ETH or USDT. ILV/ETH offers an estimated yield of 10.85% to offer some insight into rates as of writing. USDC/ETH and WBTC/ETH offer 5.45% and 0.44% respectively.

SushiSwap review

Those looking for high yield farming crypto rates will also find SushiSwap suitable. For example, USDT/BTCB is currently yielding 276%. While SHOPX/ETH is yielding 172%. Investors should keep in mind that higher yields usually come with higher risk. Moreover, pairs with huge yields typically contain at least one low-cap coin, so investors can likely expect extreme volatility. Nonetheless, we like that SushiSwap clearly displays yield farming fees for each pair. This is deducted from the investor’s accumulated rewards every 24 hours.

To get started with SushiSwap, users can connect a supported wallet like MetaMask, Trust, or Gnosis. Then, choose a suitable yield farming pair and confirm the transaction via the wallet. At any time, investors can withdraw their tokens and rewards from SushiSwap. Considering its decentralized exchange system, obtaining a suitable token from SushiSwap is also seamless. Users simply need to choose which tokens to swap, and the trade is conducted automatically.

What We Like

  • Supports hundreds of yield farming pools
  • Farming rates of over 100% on dozens of pairs
  • No account is needed – simply connect a supported wallet
  • Buy and sell tokens via decentralized pools
  • $665 million in liquidity

3. OKX – Crypto Yield Farming Pools With Huge APYs

While OKX is primarily known for its exchange services, it is also one of the best yield farming crypto platforms at the moment. This service is offered on the platform’s decentralized exchange wing, which offers various Web3 tools. What we really like about OKX is that yield farming pools are supported across multiple networks. This includes Ethereum, Arbitrum, Binance Smart Chain, Polygon, and many others.

Moreover, OKX is among the best yield farming crypto platforms for investors in search of high APYs. For instance, WETH pairs containing STONK, NARUTO, and GENSLR currently yield approximately 7,000%, 4,000%, and 1,600% respectively. For less risky pairs, consider yield farming stablecoins on OKX. For example, USDC/WETH is currently yielding 4.7%. Another option on OKX is to deposit crypto tokens into a staking pool. This also offers high earning yields.

OKX yield farming

For example, USDT and USDC offer an APY of 10% on flexible lock-up terms. Bitcoin and Ethereum can be staked at 5%. While Ape Coin is currently yielding up to 37% on fixed staking terms. No personal information or KYC is required when using the OKX DEX for yield farming and staking. This is also the case when using the OKX DEX for trading. OKX can be accessed via desktop browsers and its app for iOS and Android.

What We Like

  • Yield farming tools backed by one of the world’s largest exchanges
  • Estimated yields of up to 7,000%
  • Supports multiple blockchains – including Compound yield farming pools
  • Thousands of yield farming pairs to choose from
  • No KYC or personal details

4. Uniswap – Largest DEX on the Ethereum Network 

Uniswap is another top-rated yield farming crypto platform for investors to consider. Founded in 2018, Uniswap is built on top of the Ethereum network. As such, it supports all ERC-20 tokens for trading and yield farming. This means that investors have ample choices when selecting a suitable pair. The most popular pairs contain stablecoins, such as USDC/ETH and DAI/USDC. These pools have $291 million and $108 million in total value locked (TVL) respectively.

Other popular pairs include WBTC/ETH, FRAX/USDC, and ETH/USDT. Just like SushiSwap, Uniswap also supports some of the best emerging cryptos. While yields are higher on these pairs so are the risks. As a decentralized exchange, yield farming is accessible anonymously. Investors simply need to connect their wallet to get the process started. Uniswap is also one of the best crypto exchanges for trading tokens.

Uniswap yield farming pools

The platform uses automated market maker pools, so no seller is needed at the other end of the trade. This makes it simple to obtain tokens for yield farming. Uniswap can be accessed via desktop and mobile browsers, offering investors complete flexibility.  The platform is also compatible with other 300 decentralized apps, including Croco Finance, DeFi Saver, and AAVE.

What We Like

  • Largest decentralized exchange on the Ethereum network
  • Supports all ERC-20 tokens
  • Huge levels of liquidity
  • Earn yields anonymously

5. PancakeSwap – Earn Yields on Binance Smart Chain Tokens

PancakeSwap is considered by many investors to be the best yield farming crypto platform for Binance Smart Chain (BSC) tokens. Just like Uniswap and SushiSwap, PancakeSwap is a decentralized exchange. In addition to yield farming, PancakeSwap also supports staking pools and decentralized trading. Moreover, PancakeSwap is often the go-to exchange for new cryptocurrencies that have just been launched.

According to PancakeSwap, more than 1.5 million users have conducted 18 million trades in the last 30 days. Moreover, PancakeSwap currently has $2.9 billion in TVL. DeFi yield farming rates vary widely depending on the chosen pair. For example, some of the best yields are offered on pairs containing CAKE – which is the native token of PancakeSwap. For example, CAKE/BNB and CAKE/BUSD are currently yielding approximately 25% and 36% respectively.

Pancakeswap yield farming

Another popular yield farming pair is BNB/BUSD, currently yielding 47%. Looking for yields of over 100%? Consider AXL/USDT, which has an estimated yield of 102%. We found that PancakeSwap is also one of the best yield farming crypto platforms for multipliers right now. This boosts farming yield rewards with additional CAKE tokens. USDT/BNB, for example, currently offers a multiplier of 194x. Finally, PancakeSwap also runs daily lotteries, with jackpots usually exceeding $50,000.

What We Like

  • Popular yield farming platform for BSC tokens
  • More than $2.9 billion in TVL
  • Huge CAKE multipliers on most pairs
  • Also supports staking and trading

6. AAVE – Cross-Chain Yield Farming Pools to Maximize Returns 

AAVE is an open-source liquidity protocol that offers yield farming services. It offers cross-chain functionality, meaning that AAVE enables investors to earn income on multiple blockchain networks at the same time. In addition to Ethereum, networks AAVE supports include Polygon, Avalanche, Optimism, and Arbitrum. The platform has over $7.7 billion in TVL across these five blockchain networks.

Some of the most popular coins farmed on AAVE include Dai, LUSD, USD Coin, Tether, and Balancer. It is also possible to stake AAVE tokens, which are native to the platform. As is the case with other yield farming platforms, earning rates vary depending on the pair. Staking is also popular on AAVE, especially with those seeking above-average rates.

AAVE yield farming

For instance, ABPT can be staked at 12%. While AAVE tokens can be staked at just over 6%. Moreover, AAVE is also one of the best yield farming crypto platforms for loans. Anyone can borrow funds on AAVE as long as they put up collateral. This ensures that the AAVE ecosystem functions without too much risk. Rates are competitive too, and plenty of tokens are available when borrowing funds.

What We Like

  • Cross-chain functionality to maximize income
  • Supports Ethereum, Polygon, Avalanche, and more
  • More than $7.7 billion in TVL
  • Also supports crypto-backed loans

7. Yearn.finance – Yield Farming Pools via Curve With Earning Boosts

Yearn.finance is a popular decentralized finance platform with DeFi various services, including yield farming. The platform is very user-friendly, making it suitable for all experience levels. The vast majority of yield farming pools are offered via the Curve protocol. Some of which come with huge earning potential. For example, DYDX/ETH and CTR/ETH currently yield estimated returns of 500% and 291% respectively.

Moreover, CLEV/ETH and PAL/ETH are yielding 113% and 99%. Most yield farming pools come with a boost of 2.5 times. Another popular earning product on Yearn.finance is ‘vaults’. These are similar to staking, as only one deposited token is required. Stablecoins are supported, with vaults on DAI, USDC, and USDT paying approximately 4.3%, 2.7%, and 1.5% respectively.

Yearn.finance farming pools

ETH can also be deposited into a Yearn.finance vault, with yields estimated at 5%. Yearn.finance also has its own governance token, YFI. This also happens to be one of the most valuable cryptos in the industry due to its limited supply. With a total supply of just over 66,000 YFI, this currently values the token at $8,300. This is, however, just a fraction of its former all-time high of over $82,000.

What We Like

  • Earn yields via the Curve protocol
  • Estimated APYs of up to 500%
  • Most yield farming pools are boosted by 2.5x
  • Also supports single-token vaults

8. Binance – Provide Exchange Liquidity and Earn Farming Rewards

Like many yield farming pools, Binance offers a share of collected trading fees. This means that passive income can be earned for as long as the investor has funds in the respective yield farming pool. Binance is a great option in this regard, considering it’s the largest crypto exchange for trading volume. This means that most yield farming pools come with sufficient liquidity levels.

We also found that Binance can be a great option for earning high yields. For example, BEL/USDT and IDEX/USDT yield over 62% and 58%, respectively. While PROM/BUSD and IDEX/BNB yield 35% and 34%. Reasonable yields can also be earned on farming pools containing two large-cap tokens. For example, BTC/USDT and XRP/USDT yield 2.4%.

Binance yield farming

Those looking to reduce market volatility can also farm stablecoins at competitive APYs. For instance, TUSD/USDT yields nearly 5%. While USDC/USDT and BUSD/USDT yield 4.7% and 3.3% respectively. Binance also offers other DeFi tools, such as staking, dual investments, and vaults.

What We Like

  • High yields on dozens of farming pools
  • Great option for farming stablecoins
  • Backed by the world’s largest exchange
  • Unparalleled levels of liquidity

9. Huobi – Dual Investment Pools With High Yields 

Huobi is a popular crypto exchange that offers dual investment pools, which are similar to yield farming but with a twist. For instance, each dual investment pool requires the investor to deposit two crypto tokens. On Huobi, this always includes USDT. However, the yield earned by the investor will depend on the price of the pair once the dual investment expires.

Dual investment accounts at Huobi

For instance, let’s suppose that an investor opts for BTC/USDT with a strike price of $28,000. If BTC/USDT closes above $28,000 on expiry, the investor will earn over 123%. The investor will lose money if the pair closes below the strike price. Losses vary depending on the price at the time of expiry. Huobi supports multiple chains for its dual investment product, including Bitcoin, Ethereum, Avalanche, and Solana.

What We Like

  • Dual investment pools suitable for high-risk investors
  • Multiple blockchain networks supported
  • Also supports staking rewards
  • Store rewards in a decentralized wallet

10. CropperFinance – Top DeFi Platform for Farming Solana

Another option to consider is CropperFinance, which is one of only a handful of platforms currently available for Solana yield farming. Built on top of the Solana network, CropperFinance offers a wide range of DeFi services. In addition to yield farming, this includes token swaps, liquidity pools, and staking. Currently, investors can deposit funds into a CRP/SOL farming pool. CRP is the native token of the CropperFinance ecosystem.

CropperFinance review

This yield farming pool offers an estimated APR of over 392%. Other popular pools containing Solana-backed tokens include HTO/USDC, FUM/USDC, and ATC/USDC. CropperFinance is also a popular option for investing in new cryptocurrency launches from the Solana network. This usually offers early investors the lowest price possible, but vesting periods are usually a requirement.

What We Like

  • Earn an APY of over 392% on CRP/SOL
  • Built on top of the Solana blockchain
  • Staking rewards can also be earned
  • Also offers access to newly launched Solana projects

What is Crypto Yield Farming?

Yield farming is a complex investment tool that enables crypto holders to earn a passive income from tokens they own.

Generally, crypto exchanges pay interest to yield farming investors for providing liquidity for trading on the exchange. In effect, investors allow their tokens to be used for market-making and lending on the exchange.

Yield farming rewards are funded by trading commissions. That is, investors receive a share of commissions collected by the respective exchange.

Unlike crypto staking, yield farming requires investors to deposit two different tokens. This is because the investor provides liquidity for a trading pair, such as USDC/ETH or DAI/USDC. In turn, investment returns will also be determined by the market value of both tokens. This is why yield farming is considered a high-risk, high-return investment option.

Yield farming is available on both centralized and decentralized exchanges.

How Does Yield Farming Crypto Work?

In this section, we take a much closer look at how crypto yield farming works.

Exchange Liquidity

Yield farming is a win-win situation for both exchanges and crypto investors. From the perspective of the exchange, the platform receives much-needed liquidity. This ensures that buyers and sellers can trade in optimal market conditions. After all, insufficient levels of liquidity will result in slippage and an inability for market participants to agree on a price.

From the perspective of investors, yield farming promotes passive income on idle crypto tokens. This is because the exchange will share a percentage of trading commissions with those providing liquidity. Once the tokens are deposited by the investor, the earning process is completely passive.

Trading Pairs

As we briefly noted above, crypto yield farming requires liquidity for trading pairs. This means the investor will need to deposit two different tokens. This is where things get complicated, as an equal amount needs to be deposited based on real-time market prices.

For example, let's suppose an investor wishes to add liquidity for  USDC/ETH. At the time, one ETH amounts to $1,500. Suppose the investor wishes to deposit 2 ETH. This means that the investor must also deposit $3,000 ($1,500 x 2) worth of USDC. In total, the investor is depositing $6,000 worth of crypto into the yield farming pool.

In doing so, buyers and sellers can easily trade USDC/ETH without needing to worry about liquidity issues. With that said, yield farming is also an option on low-cap tokens. This means that liquidity levels will likely still be low. But equally, the yield farming rewards can be significantly higher.

STONK/WETH on OKX currently offers an APY of nearly 7,000%. However, the risk of loss on this farming pool is extremely high.


Investors need to consider the token's market value when assessing profits and losses when staking crypto. In the case of yield farming, the investor needs to consider two different tokens.

For example, if both tokens deposited rise in value this can amplify returns for the investor. But if the opposite happens, losses are likely to be encountered.

How Does Yield Farming Crypto Work?

This is why seasoned crypto investors will look to diversify their yield farming efforts. This means spreading the risk across multiple farming pools at any given time.

Share of Farming Pool

Yield farming is available to investors of all shapes and sizes. But the greatest rewards are offered to those with a larger stake in the respective farming pool. This is because rewards are distributed based on the investor's stake.

For example, suppose that an investor adds 50% of the liquidity on  USDT/BTCB. On day one, USDT/BTCB raises $1,000 in yield farming commissions. This means the investor will receive 50% or $500.

Impermanent Loss

Another complex term to understand when yield farming crypto is 'impermanent loss'. This relates to losses that occur when the value of the two deposited tokens changes in relation to each other.

This is because the yield farming platform will need to adjust the balance of the tokens in the pool to ensure they are equally valued.

  • For instance, we mentioned above that investors need to deposit an equal number of tokens in terms of real-time market value.
  • We'll say that 1 ETH is worth $2,000 USDC at the time. So, if the investor deposits 3 ETH they also need to deposit 6,000 USDC (assuming 1 USDC = $1).
  • Let's say the investor proceeds with the deposit and that they now own 100% of the yield farming pool.
  • A few weeks later, 1 ETH is worth $3,000 USDC. This means that the liquidity pool will have been rebalanced due to arbitrage traders taking advantage of the price difference.
  • Meaning, the pool now contains 2 ETH ($6,000) and 6,000 USDT ($6,000).
  • As per the above, the yield farming pool is still worth $12,000 but has just 2 ETH instead of the 3 ETH that was initially deposited.
  • In turn, the investor will have made an impermanent loss of 1 ETH.

It is important to note that the investor will also have received their share of trading fees on ETH/USDC positions. Considering ETH/USDC is a high liquidity pair, these fees may have covered the impermanent loss. But this isn't always the case.

Ultimately, impermanent losses consider what the investor would make had they opted against yield farming. For instance, in the example above, the investor would have benefited from ETH increasing to $3,000 from $2,000 had they held the tokens in a private wallet. But because they deposited the tokens in a yield farming pool, they likely lost money.

This is why yield farming is considered such a high-risk investment product. Instead, many investors will opt for staking platforms like eToro. In doing so, only one token is required when making the investment. Moreover, if the value of the token increases while being staked, the investor will benefit financially.

Cryptoassets are a highly volatile unregulated investment product.

Yield Farming vs Staking

Crypto staking is used to validate transactions on a proof-of-stake blockchain network. Rewards are released when a new block of transactions is validated.

Yield farming is used to provide liquidity to crypto exchanges. Rewards come from commissions paid for trading in a token pair at the exchange.

Yield farming and staking have many similarities. For example, both enable investors to earn passive income on idle crypto tokens. Furthermore, returns are based on multiple factors, including the token's market value being staked or farmed.

However, there are also some clear differences between the two. As noted, staking only requires the investor to deposit one token. This alleviates the risk of impermanent losses. On the other hand, yield farming requires the investor to deposit two different tokens. This is because the tokens form a trading pair.

Another difference between the two is how passive income is generated. In the case of staking, the platform will usually use the funds to facilitate crypto loans. The borrower will pay interest on the loan and the investor will receive their share.

Yield farming tokens are used to provide exchanges with liquidity. In turn, investors make money from trading fees that are collected from the respective pair. Remember that staking and yield farming both come with a high degree of risk. While rewards can be unprecedented, so can the losses.

Best Yield Farming Crypto List

In this section, we explore the best pairs for yield farming.

Note: All of the yield farming pairs discussed below can be accessed via the OKX DEX. This is because OKX offers aggregator services, meaning it can connect to dozens of leading yield farming platforms.


Both Tether (USDT) and Wrapped BNB (WBNB) are solid tokens with high liquidity and trading volumes. This makes the USDT/WBNB ideal for yield farming. Currently, this yield farming pair offers an APY of 19.4% on SushiSwap.


Do note that the pool currently has just over $70,000 in TVL. This means that a large investment would allow the investor to control a sizable percentage of the pool.


Another popular pair for yield farming is Wrapped Ethereum (WETH) and USDC. This pair is currently available on SushiSwap with a huge TVL of $13.5 million. Yields depend on which blockchain network the investor opts for.


An APY of 5.5% can be achieved when opting for Arbitrum. While the Ethereum blockchain pays just 2.4%. Nonetheless, all three pools offer high levels of liquidity, offering a more stable yield farming process.


Looking to make money from yield farming and want to reduce the risks of volatility and impermanent loss? If so, it's worth considering a yield farming pair that only contains stablecoins.


USDC/USDT is a great option here, both of which are pegged to the US dollar. When adding liquidity to this farming pair on Uniswap, a yield of just over 1% is available. Currently, the pool contains a TVL of nearly $23 million.


Investors with a high-risk appetite will need to consider micro-cap tokens when targeting the highest yield farming rewards. A good example of this is ACID/ETH. Currently, ACID Token carries a market capitalization of just $4.2 million.


In turn, it's possible to get a huge APY of 89% on ACID/ETH. This pair is listed on the Camelot protocol via the Arbitrum network. A TVL of over $452,000 is currently available.


Looking to earn passive income on both Bitcoin and Ethereum? BTC/ETH is a popular liquidity pool that is available across many of the best yield farming crypto platforms.

BTC/ETH yield farming

We found that the highest yield on offer is currently 3.2%. This is available at SushiSwap, and the TVL is $430,000. At SushiSwap, this pair operates on the Fantom network.

Is Yield Farming Crypto Worth it?

Like many crypto investment products, yield farming has its pros and cons. The main benefit of opting for yield farming is that returns can be significant. But there are many factors at play that will determine rewards. As noted, this includes the value of the two tokens in the respective pool.

With that said, many investors prefer staking over yield farming. Returns are more stable, and only one token needs to be deposited. Most importantly, if the token deposited increases in value, this will directly benefit the investor. The same can't be said for crypto yield farming.

Best Yield Farming Strategy

There is no one-size-fits-all solution when exploring the best yield farming strategy. Ultimately, the strategy will depend on the investor's risk appetite and financial goals.

For instance, an investor with a lower tolerance for risk will likely be more suited for yield farming pairs that only contain stablecoins. In theory, this removes the risk of impermanent loss and volatility. Although stablecoins are never risk-free, as seen with Terra USD. But when compared to conventional cryptocurrencies, the risks are typically much lower. In turn, APYs on stablecoin yield farming will be modest.

At the other end of the scale, investors with a high appetite for risk might consider a yield farming pair containing a new or low-cap crypto. This will present the best chance possible of making sizable returns. But equally, the risk of impermanent loss is extremely high.

SushiSwap yield farming

A good middle ground is to consider yield farming pairs that contain two large-cap tokens with an established track record. Examples in this category include Ethereum, Litecoin, Bitcoin Cash, Solana, and Cardano.

Irrespective of the chosen pair, it is important for investors to diversify. This is more challenging when opting for yield farming over staking. After all, each chosen pool requires an equal amount of two tokens. In comparison, staking pools usually allow investors to deposit any amount.

Is Crypto Yield Farming Taxed?

The bottom line: In most countries, rewards earned from yield farming are considered taxable income.

As we explain in our guide on how to avoid crypto taxes, yield farming is typically considered 'income' in most countries. This means that the yield farming rewards will be added to the investor's income for the year they were received. In turn, this can push the investor to a higher tax bracket.

Moreover, the amount that needs to be added to the investor's income is determined by the value of the tokens when received. Remember that the amount withdrawn from a yield farming pool will vary depending on market forces, so this makes things even trickier.

For example, suppose that an investor originally deposits 10 ETH and 1 BTC into a farming pool. When a withdrawal is made, they get the same amount back. However, the value of both ETH and BTC has increased by 50%. This means that the reported income should be based on the higher value.

On the flip side, investors making a loss from yield farming (even if the token values have increased) will likely be able to make tax deductions. This is because the investment resulted in a loss.

Is Crypto Yield Farming Legit & Safe?

In most countries, DeFi services like yield farming and staking are legal. However, investors should ensure they are well-versed in the risks of yield farming before proceeding.

This includes researching the chosen yield farming platform. In most cases, there is no requirement to deposit funds into the platform itself when using a DEX like Uniswap or SushiSwap. Instead, the tokens are deposited into a smart contract, meaning the provider cannot personally access the funds.

However, if there is a vulnerability in the smart contract itself, the funds could be at risk. Moreover, due to the high-risk nature of yield farming, there is always the chance that investors will lose some or even all of their money. This can happen if the tokens being farmed witness a sizable devaluation.

Ultimately, it might be best to stick with a regulated platform that offers staking. At eToro, for example, investors can earn staking rewards on Ethereum, Cardano, and Tron. There are no lock-up periods, and investors can withdraw their staked tokens anytime. Most importantly, eToro is regulated by multiple financial bodies.


In summary, we ranked and reviewed the best yield farming crypto platforms. While yield farming offers the potential to earn unprecedented rewards, the risks can be super-high.

Instead, many investors will opt for staking. This requires investors to deposit just one token, rather than needing to fund a trading pair at equal amounts.

We found that eToro is the best place to engage in crypto staking. There is no requirement to opt-in, and rewards are updated every 24 hours. Plus, eToro is a regulated platform enabling investors to cash out their staked tokens without meeting a lock-up period.

Cryptoassets are a highly volatile unregulated investment product.


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Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…