DeFi Yield Farming 2026: Earn 20%+ APY on Crypto

Complete guide to earning passive income with DeFi. Liquidity mining, staking pools, risk management.

💰 Top Yield Farming Opportunities

🌾 Ethereum Staking via Lido (LDO)

APY: 3.5% | Lock-up: 14-28 days | Risk: Low

Deposit ETH → receive stETH → earn 3.5% APY. Liquid staking (can trade stETH). Safest DeFi yield play.

🔄 Liquidity Mining on Uniswap/Aave

APY: 8-20% | Lock-up: Variable | Risk: Medium (impermanent loss)

Provide liquidity (e.g., ETH+USDC pair) → earn swap fees + governance tokens. Best for volatile pairs (high fees).

⚡ High-Risk/High-Reward Farming

APY: 20-50% | Risk: High (rug pull, smart contract bugs)

New DeFi protocols offer insane yields. Catch: unsustainable (30 days then crashes). Only for <5% portfolio.

⚠️ Yield Farming Risks

Smart Contract Risk: Bug = funds locked forever. Audit matters. Use battle-tested protocols (Aave, Uniswap).

Impermanent Loss (IL): If price diverges (ETH up 50%, USDC flat), you lose vs HODLing. High volatility = high IL.

Rug Pull: Protocol disappears with funds. Only use established projects with multisig wallets.

⚠️ Disclaimer: APY unsustainable. This is NOT financial advice. High yield = high risk. Start small, learn first.