Yield aggregators continue to show profits despite crypto winter
The extended crypto bear market has seen different products affiliated with the sector record significant losses. Despite the market conditions, different products in decentralized finance (DeFi) space are recording impressive returns for investors.
In this line, according to data compiled by Bolide Finance, most DeFi yield aggregators have posted positive returns during the first and second quarters of 2022. Most companies posted high results in January, with Acryptos leading at 12.55% followed by Beefy Finance at 8.43% while Autofam is third at 2.43% while Killswitch stood at 0.31% returns.
At the same time, as of July 2022, Beefy Finance recorded 0.99% while Acryptos had a return of 0.62%. Autofam and Killswitch registered returns of 0.53% and 0.08% respectively.
Elsewhere, the returns have been replicated under the DeFi farming segment, with PancakeSwap leading with returns of 314.37% in January, followed by Elipse at 35.40%, while Biswap ranked third at 32.22%. During the first month of the year, Mdex had returns of 19.53%, while Nomiswap stood at 0.25%.
In July, Pancakeswap had returns of 179.08%, followed by Biswap at 16.82%, while Mdex was third at 9.79%. Ellipse and Nomiswap had returns of 5.15% and 0.96%, respectively.
For lending platforms, Dforce topped as of January at 8.11%, followed by Venus at 4.63%, with Liqee ranking third at 2.73%, while CREAM Finance stood at 0.95%.
Investors changing strategies
The research attempted to explain some of the drivers behind the impressive returns by the DeFi platforms despite the crypto winter. According to the research report:
“Generally, the yield farming sector has remained strong over 2022 as investors look to change their strategies, preferring to trade less, hold their coins, and earn a stable yield until the crypto winter passes. Overall, the DeFi sector seems to be maturing and responding to market changes and investors’ needs much faster than most staking methods.”
Notably, the DeFi space allows investors to take a long-term approach to navigating the bear market.
