For cryptocurrency holders, one of the ways to earn passive income on your idle cryptocurrency is to supply them into liquidity pools and earn yields from these liquidity pools.

Here’s a simple illustration from Uniswap on how liquidity pool works:

Image Credit: Uniswap

As a liquidity pool provider, you will earn interest originating from the transaction fee generated whenever a trader or borrower executes a cryptocurrency trade.

For Ethereum, here are a list of liquidity pool provider or yield farms where you can supply your cryptocurrency into in order to generate a return on your digital asset.

The list is sorted by market capitalization, which is an indicator used to see how widely used are these protocols.

It is important to note that these projects are susceptible to rug pulls, so do perform your due diligence and research before committing to these farms.

Ethereum Farms

ProjectSymbolWebsiteMarket Cap
LIDOstETHstake.lido.fi$1,286,034,589
Alpha Finance LabALPHAalphafinance.io$209,449,066
CreamCREAMcream.finance$120,000,715
KeeperDAOROOKkeeperdao.com$79,551,409
Badger DAOBADGERbadger.finance$79,310,182
Zero Collateral DAIZAIzai.finance$73,529,894
cVault FinanceCOREcvault.finance$60,072,494
BellaBELbella.fi$57,137,853
Index CoopINDEXindexcoop.com$49,524,407
UnFederalReserveERSDLunfederalreserve.com$46,146,991
Bao FinanceBAObao.finance$42,152,602
DefiDollarDUSDdusd.finance$34,489,163
Rootkit FinanceROOTrootkit.finance$29,598,765
Saffron FinanceSFIsaffron.finance$24,053,352
Armor.fiARMORarmor.fi$23,788,343
Origin DollarOUSDousd.com$19,225,280
Stake DAOSDTstakedao.org$18,533,066
Glitch FinanceGLCHglitch.finance$17,805,517
YFPRO.FinanceYFPROyfpro.finance$13,348,188
Indexed FinanceNDXindexed.finance$12,544,365
Orai ChainORAIorai.io$10,731,678
Ichi.FarmICHIichi.farm$10,208,722
BoringDAOBORboringdao.com$9,276,568
Swerve FinanceSWRVswerve.fi$9,071,485
PowerTradePTFpower.trade$7,539,836
Value DeFi ProtocolVALUEvaluedefi.io$7,508,381
OpenDAOOPENopendao.io$4,960,077
Roobee FinanceROOBEEroobee.finance$4,472,571
OnX FinanceONXonx.finance$4,199,728
Basis CashBACbasis.cash$4,171,712
Alpaca CityALPAalpaca.city$3,854,655
UniCrypt NetworkUNCLunicrypt.network$3,381,480
Dify FinanceYFIIIdify.finance$3,038,419
Octo.fiOCTOocto.fi$2,989,366
World Token NetworkWORLDworldtoken.network$2,956,868
YFDAI FinanceYF-DAIyfdai.finance$2,869,744
Surf.FinanceSURFsurf.finance$2,861,888
Dracula ProtocolDRCdracula.sucks$2,855,245
DeFi Yield ProtocolDYPdyp.finance$2,694,247
FalconswapFSWfalconswap.com$2,481,279
BiFi FinanceBiFibifi.finance$2,389,605
GameswapGSWAPgameswap.org$2,282,758
SnowSwapSNOWsnowswap.org$1,921,437
Pylon FinancePYLONpylon.finance$1,410,508
DeFiSocialDFSocialdfsocial.com$854,151
Akropolis DelphiADELdelphi.akropolis.io$788,068
Gourmet GalaxyGUMgourmetgalaxy.io$736,400
Coin ArtistCREDcoinartist.io$731,330
FlashstakeFLASHflashstake.io$674,540
DeficliqCLIQdeficliq.com$638,567
PepemonPPBLZpepemon.finance$517,229
Yield provided on Alpha Labs as of 13th July 2021

As a rule of thumb, signs of a good liquidity pool include:

  1. The longer the liquidity pool is around, the safer it is.
  2. The more total value locked in the farm, the safer it is.
  3. The more cryptocurrency pair available for staking, the safer it is.
  4. High APYs (4 – 7 digit APYs) generally means the liquidity pool is relative new and less stakers to split the pool rewards.
  5. The more users staking their cryptocurrency (total value locked), the safer it is.
  6. The more protocols built on top of the liquidity pool, the safer it is.

Also Read: The Ultimate 2021 Guide On Crypto Yield Farming And How To Get Started