If you're turned off by impermanence loss from using liquidity pool, and yet would still want to earn a little more while waiting for AVAX to gain... You can consider lending.
A couple of platforms for lending, and the rates they offer for your AVAX deposits (instead of just sitting in your wallets at 0%):
- Benqi (20%) - https://benqi.fi/
- Trader Joe (16%) - https://www.traderjoexyz.com/#/lending
If you're a small investor, you may not have enough rewards to justify compounding regularly (i.e. daily claim, convert to AVAX, and top up your AVAX). In such cases, auto-compounders come into play. Of course, they do charge a fee for doing the job for us (I do see it as worth the fee as I save my time and paying gas fees). A couple of native and multi-chain auto-compounders for your reference:
- Snowball compounding on Aave (38%) - https://app.snowball.network/compound-and-earn
- Yield Yak compounding on Benqi (34%) - https://yieldyak.com/farms
- Yield Yak compounding on Trader Joe (34%) - https://yieldyak.com/farms
- Beefy compounding on Aave (27%) - https://app.beefy.finance/#/avax
Do note that such a single-stake strategy is available in many other platforms, you can replicate it on Fantom (for FTM) for instance. This strategy is not financial advice, just sharing what I'm personally trying out. Please do your own research! These do come with risks - smart contract risks are ever-present for platforms. For auto-compounders, they add on an additional layer of risk. Whether it's worth it? It's your own call.
Cheers guys, have fun exploring Avax!
Image credit: https://snowball.network/ (Snowball got the highest return, so well, they earned the thumbnail feature)
