3 'Animal' Farming Projects to Follow for a Fruitful Harvest in 2022

People have interesting traits. One of which is the fact that sometimes they look back and think that if they had taken certain steps – some time ago – then everything could have been different.

“Oh, if I became an instagram blogger in 2017, bought cryptocurrency in 2018, started shooting TikTok videos in 2019, understood the NFT phenomenon in 2020, figured out what the metaverse was in 2021…”

Now all these things are well-known trends, through which someone could have been successful and gained a substantial amount of money. At this point, it seems like there won’t be chances like the ones we’ve listed, but that is a false assumption.

Now in 2022, the entirety of the financial world still revolves around cryptocurrency and related technologies as the crypto community – as a whole – tries to guess what will be on top this year. Stabilized trends are moving towards a new decentralized financial model, fueled by a user’s need to avoid third-party intermediaries while taking advantage of a new passive source of income. Farming of crypto assets still remains the most engageable format of meeting these needs and expectations. How they will evolve in 2022 is a point for discussion but the number of stakers and farmers grows as well as the DeFi market’s TVL.

What is farming?

Farming is the process of accruing tokens as a form of a reward for providing liquidity to a project by placing a certain pair of tokens in a pool.

A liquidity pool is a smart contract where the user's funds are locked. These pools ensure a marketplace where other users can exchange their cryptocurrencies, borrow, or lend their tokens. Once funds are added to the liquidity pool, the user officially becomes a liquidity provider. For all these actions, users get a reward in the form of a particular decentralized exchange’s native token, which can then be sold, used for further farming, or deposited in other liquidity pools.

Users can calculate the profitability of farming on the basis of annual percentage, which is tracked through the annual percentage rate (APR) and the annual percentage yield (APY). In farming, investors can use strategies that can provide them with profits of over 50% per year. This income is passive and investors can receive it regardless of market conditions and price performance. Of course, all transactions are protected by smart contracts, but no one excludes the factor of a cyber attack, so before making any transaction, carefully read information about the chosen project and find out how securely it is protected.

How to become a skilled farmer

Next, we would like to give a little background on APR and APY to describe their advantages and things to be considered when working with them.

APR (Annual Percentage Rate) – is the annual rate of return, expressed in percentages. Also called simple interest, this APR gives DeFi users a figure that can be easily compared to the rates of other protocols.

APY (Annual Percentage Yield) – is the annual compounded return, expressed in percentages. It is calculated by taking interest on the initial amount invested as well as on the interest accrued on this amount. In other words, one earns interest on interest.

Here is one moment worth mentioning: is there something that can affect ARP and APY? Yes, impermanent losses can change your APR and APY. Impermanent losses (IL) occur when liquidity providers receive different amounts of assets on withdrawals compared to when they first deposited into the automated market maker (AMM) liquidity pool. This is due to changes in the price of a token that affect the composition of the liquidity pool, resulting in you having slightly less or more of a certain token. For example, even if you invested your assets in a 50:50 ratio at the beginning, there is no guarantee that you will receive the same amount of each asset at the end. If IL exceeds fees earned by a user when they withdraw, it means the user has suffered negative returns compared with simply holding their tokens outside the pool.

At the same time, APY can also vary depending on the price of the token and the total amount of deposits.

The general rule is that the greater the number of the interest payment periods, the higher the APY. Sometimes the protocol may display APR instead of APY. The key difference is that the annual interest rate can be treated as simple interest, which does not include the effects of compound interest. Both protocols can have the same APR, but the APY can vary greatly depending on how often new tokens are continually added to your initial deposit. APYs can change depending on the demand or use of a protocol. Some protocols use a fixed APY.

Let’s look briefly at a row of interesting projects providing convenient interfaces and profitable conditions for farming.

Hashbon Farming

A short time ago we launched Yield Farming on our own DEX – Hashbon Rocket which is a part of our Hashbon FiRe ecosystem. We proudly can say that it is one of the recently announced beneficial offers on the 2022 crypto market. Users who have tokens in liquidity pools on Hashbon Rocket can take part in Hashbon Farming and receive rewards in HASH, native token of the ecosystem. It is secure and sustainable, all the conditions are fixed in Hashbon’s farming smart contract.

What makes Hashbon Farming a valuable opportunity?

• APY (Annual Percentage Yield) can reach up to 248.29%
• Max APR (Annual Percentage Rate) is 125%
• The reward pool for Hashbon Farming is 15,000,000 HASH Tokens.
• There are no upper limits, meaning you can start with 1 HASH and stake as many tokens as you like.

You may find more information regarding Hashbon Farming in their FAQ section by visiting this link.

ApeSwap Farming

ApeSwap is a DEX on Binance Smart Chain and Polygon. At ApeSwap, they use farms to primarily incentivize users to provide liquidity for their favorite projects by rewarding users who stake particular APE-LP tokens with BANANA. 

As with Staking Pools, Yield Farm earnings are expressed in APR, which is listed next to each farm. This is the number of BANANA tokens that will accrue while APE-LPs are staked, expressed as a percentage of the staked input tokens, calculated at current rates.

For example, the BANANA-BUSD farm allows users to stake APE-LP tokens they've earned from adding liquidity to the BANANA-BUSD liquidity pool to earn BANANA reward tokens.

• Max APR (Annual Percentage Rate) in Jungle Farming is 278,12%
• Max APR (Annual Percentage Rate) in Banana Farming is 140,02%

To ensure that the ApeSwap is a secure platform you can look at their smart contracts.

Don-key Farming

Don-key finance takes an interesting approach because here they choose a strategy for users (risky or not, or very risky) professionally designed and updated to chase the highest available APY. Here you can get acquainted with their smart contracts.

Farming on Don-key finance is based on the Tier System. A Tier System unlocks utility on Don-key’s copy-farming platform. Each level unlocks an additional level of benefits and profitability, rewarding holders of $DON as much as possible.

At the moment tiers provide extra APY in the form of $DON tokens, while base profits are given in the farmed coin. In the future, tiers will unlock more utilities such as: referral rewards, generative NFT rewards, exclusive farming opportunities, autonomous strategy building, and more.

• APY (Annual Percentage Yield) can reach up to 375%

2022’s trend is still – generally speaking – cryptocurrency, in particular, earning a passive income through cryptocurrency. Now there are countless projects on the market that provide their coins or technologies, and with the help of farming, staking, and referral programs, you can increase your earnings. Before you start farming, carefully explore potential projects, what the media has written about them, what members of their community say, whether they have an audit or not, and how long the project has existed in the market. 

Take the bull by the horns and participate in farming through your project of choice now!