Harmony One’s ecosystem has been blowing up lately, with a surge in Total Value Locked and many new upcoming projects.
If you are new to the ecosystem and are looking for protocols to do yield farming in, here is a good starting point for your Harmony ecosystem yield farming research.
Each project has their own unique features, benefits and potential downsides, so be sure to do your own further research after reading this article.
As one of the very first decentralised exchanges built on Harmony, Viper has been a familiar name for many users in the ecosystem.
They offer many liquidity pools paired with the ONE token, including pools pairing ONE with Bitcoin, Ethereum, Luna and more.
The rates offered are also decent, with many farms offering APRs above 100%. Rewards are given in the native Viper token.
However, a caveat is that there is a 95% lock / 5% unlock system to the rewards farmed.
The Viper token is configured to lock 95% of all newly minted supply during the yield farming stage, until 5th February 2022.
After 5th February, the locked supply will slowly start to unlock on a block-per-block basis over a year.
This means that you will only be able to fully unlock and receive all your Viper farming rewards in February 2023.
The household name and crown jewel of Harmony, Defi Kingdoms also has attractive yield farms for users.
Their most rewarding farms are those that are paired with their native Jewel token. They also offer farms paired with many other popular L1 tokens, such as FTM, AVAX, and of course ONE.
Similar to Viper Exchange, there is also a locking model for the Jewel rewards earned in their yield farms.
At the first epoch, 5% of any rewards claimed from the Gardens were unlocked and immediately accessible and 95% of rewards claimed from the Gardens were locked.
The percentage of unlocked rewards will increase by 2% every epoch, until all rewards are fully unlocked around Q3 of 2022. Do note that this increase of unlocked rewards per Epoch applies only to unclaimed rewards.
If you have claimed rewards earlier, locked rewards do not benefit from this increasing unlock rate per Epoch and will remain locked until after Epoch 51 when they will start to unlock.
Farmers Only is a farming and auto-compounding vault in Harmony.
While they have several features such as yield farms and token swaps, their main unique feature is their auto-compounding vaults.
Instead of manually claiming rewards and reinvesting them into liquidity pools, these vaults do them for you.
If you were to do it manually, you would have to claim rewards, sell half of it to the pair token, add them as a liquidity pair and provide them again. This is a rather tedious process.
Farmers Only simplifies this by doing auto-compounding multiple times an hour, made possible by the low fees in the Harmony blockchain.
This allows you to maximise your yield farm rewards, especially if you are intending to provide liquidity in a farm for a long time period.
Do note that there will be fees incurred for withdrawal and rewards earned as well.
Tranquil Finance is a money market and liquid staking protocol on the Harmony ONE blockchain.
This allows users to supply and borrow assets, while receiving or paying interest in a completely permissionless and decentralised manner.
You can have the option of simply supplying your stablecoins such as USDC or USDT to earn Tranq rewards.
Of course, you can also provide liquidity in the Tranq/One liquidity pool to earn higher rewards.
My personal preference is the stOne/One liquidity pool. Here, you can earn decent APRs with your One tokens at minimal impermanent loss, while not risking the loss of any One tokens.
Tranq rewards earned can also be reinvested into their staking pools. Tranquil Finance also has plans to enter GameFi with the Defira project in future, so accumulating Tranq rewards might pay off in the long run.
Similar to Tranquil Finance, Hundred Finance is a lending and borrowing decentralised app protocol.
It is also multi-chain, currently in chains such as Ethereum, Fantom, Arbitrium, and Harmony.
Here, you can also supply stablecoins and earn rewards at decent APRs in the native HND token.
Rates here fluctuate over time. For instance, at the point of this writing, providing UST earns you a 20.8% APR, slightly higher than the rates offered at Anchor protocol.
Earning rewards through yield farming can be an exciting venture if done well.
This is just a glimpse of some of my preferred yield farms in the Harmony ecosystem. If you are interested in exploring the many other options, you can make use of tools such as VFat and Defilama.
It is not without its risks though. Do take time to research the protocols you are farming in, and learn about concepts like Impermanent Loss before starting.
Featured Image Credit: Chain Debrief