I guess most of you have already yield farmed on the Binance Smart Chain. The experience is great and the APYs huge. However, it raises several issues:
- Binance Smart Chain is not decentralized. What will happen to your pegged tokens if Binance has any issue? Even the bridge goes through binance.org. You are completely linked to Binance.
- Most of the liquidity pools proposed on Pancakeswap and other Binance AMMs are vs. BNB: e.g. ETH-BNB, BTC-BNB, LINK-BNB... Too much BNB...
- The AMMs on Binance Smart Chain have become so popular that they attract too many hackers now, and therefore the risks of hacking and other kind of attacks are increasing. Look at what happened last week with the DNS servers of Pancakeswap... That's only the beginning, the risk is huge.
Therefore, I have started to look at the alternatives:
- Avax is a great one. However, the only AMM that I know is Pangolin. Looking at their pools and APYs, I have not been fully convinced... yet
- Solana is a powerful blockchain. The Raydium wallet allows to invest into liquidity pools too. However, they are all vs. RAY now... Not so good
- Fantom is the best alternative I have found so far. They already have Sushiswap and Curve in their blockchain Dapps, that you can easily use through Metamask. Furthermore, Fantom fundamentals are much better than the Binance Smart Chain (BSC) and Ethereum (ETH):
- TPS (Transactions Per Second): Fantom 1500+ / BSC 300 / ETH 15...
- TTF (Time-To-Finality): Fantom 1-2 seconds / BSC 33-45 seconds / ETH 150 seconds...
- Transaction cost: Fantom $0.0002 / BSC $0.06 / ETH $5+...
So, if you compare objectively, Fantom will be the big winner. However, Ethereum has still a much higher market cap (5 times) than Binance which has a much higher market cap (40 times) than Fantom... However, is it really a drawback for Fantom? It means that the growth potential is huge, especially with the fundamental advantages above.
You can try Sushiswap on Fantom by switching to Fantom mainnet on Metamask and sending a few FTM from Binance to your wallet. You can swap your FTM to USDC on Sushiswap... and start to play. You will be amazed by the speed of the transactions... and the low fees. There are only a few hodlers on the liquidity pools right now, you can get a big share of the transaction fees.
I also think Fantom FTM will surge when holders start to migrate from the BSC to Fantom... Not a financial advice, just a gut feeling.