When you have a certain amount of money and you want to invest in Defi to maximize your profits, but you don’t have enough time or knowledge about DeFi to find the best profitable projects. The Yield Aggregator protocol projects are here to help you do just that. Let’s learn the contents below to understand the basics of them.

What is a Yield Aggregator?

Yield Aggregator is a protocol that aggregated yield from diverse protocols.

Yield Aggregator is profit aggregator plays an important role in the yield farming economy by leveraging different DeFi strategies and protocols to maximize investors profits.

How does is work?

You will deposit crypto assets into projects about Yield Aggregator. By using smart contracts, these Yield Aggregator projects will implement Yield Farming strategies on other Defi platforms such as AAVE, COMPOUND, MAKER DAO … to optimize profits for investors.

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Yield Farming is the term for investors trying to generate as much profit as possible from their crypto assets, through providing liquidity to DeFi protocols.

Yield farming tries to look for yields across a variety of protocols and attempts to maximize the rate of return of governance or protocol tokens. Yield farming can take several forms:

Lending and borrowing
Providing liquidity
Staking
………

Advantages of Yield Aggregator

Yield Aggregator helps pool deposits together and simplifies the investors experience. Investors only need to care about depositing and withdrawing money. Profit earning and optimization will be done by the yield aggregator.

This helps investors save time, or do not need to invest capital in each project and still optimize their profits when participating in investment.

What are the best yield aggregators?

Yearn.Finance

Yearn.Finance (YFI) is a liquidity aggregator in Decentralized Finance (DeFi) that provides aggregation of lending (lending/borrowing), profit generation (yield) and insurance (Cover) on the Ethereum blockchain.

Yearn.Finance as a digital bank helps users maximize profits by depositing their funds into Yearn.Finance pools. Then the system’s protocols will send your money to lend on lending platforms like Aave, Compound… with the strategy of maximizing profits as much as possible. You get back yTokens, profit interest and rewards if any based on pools and automatically distributed by the system.

Beefy Finance

Beefy Finance is a Yield Optimizer platform that allows you to Stake or Farming with the most optimal profit, by using an algorithm to compare the interest rates of Vaults in different Liquidity Pools (liquidity pools) of exchanges. decentralized translation according to AMM mechanism.

When Farming in Yield Aggregators, users not only receive interest from the main Liquidity Pools, but also receive Incentive from Yield Aggregators, more specifically their native tokens (Farming on Beefy Finance receives BIFI).

The most outstanding feature of Beefy Finance is the implementation of Multichain, Beefy Finance has launched on 5 chains and cooperated with many Liquidity Pools such as:

• Binance Smart Chain: Pancakeswap, Apeswap, Bakeryswap, Venus, Ellipsis,..

• HECO Chain: MDEX, Lavaswap, Lendhub, HFI,…

• Polygon: Quickswap, Aave, Polywhale, Cometh, Adamant…

• Avalanche: Pangolin, Snowball, Lydia, Gondola, Oliveswap, Complus,…

• Fantom: Spookyswap, Froyo, Ester,…

Rari Capital

Rari Capital is a DeFi Yield Farming protocol that enables users to deposit crypto assets on the most stable profit opportunities automatically by performing Lending and Yield operations on a number of DeFi protocols like Compound, KeeperDAO, Aave, etc.

Rari Capital’s main goal is to capture DeFi’s liquidity, deploying liquidity in the most capital efficient way, giving users higher returns than before and at the same time being able to avoid risks

Vesper

Vesper provides a platform for easy-to-use Decentralized Finance (DeFi) products.

Vesper’s DeFi products deliver ease-of-use in achieving your crypto-finance objectives. The Vesper token (VSP) is the core economic engine that facilitates the building and expansion of Vesper’s capabilities and its community.

Autofarm Network (AUTO)

Autofarm Network (AUTO) is considered an aggregator of Yield Farming – farming productivity that operates on two platforms, Binance Smart Chain (BSC) and Houbi ECO Chain (HECO). In it, decentralized applications (DApps) are designed with the aim of optimizing the profits of DeFi users when they interact with other DApps in the DeFi space.

Alpaca Finance

Alpaca Finance is the largest lending protocol allowing leveraged yield farming on BNB Chain. It helps lenders earn safe and stable yields, and offers borrowers undercollateralized loans for leveraged yield farming positions, vastly multiplying their farming principals and resulting profits.‌

As an enabler for the entire DeFi ecosystem, Alpaca amplifies the liquidity layer of integrated exchanges, improving their capital efficiency by connecting LP borrowers and lenders. It’s through this empowering function that Alpaca has become a fundamental building block within DeFi, helping bring the power of finance to each and every person’s fingertips, and every alpaca’s paw…

Conclude

The potential of Yield Aggregator will grow in the future with DeFi finance. You need to consider the potential as well as the risks of each project to be able to invest in the most reasonable way.

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