Cardano ($ADA) has evolved from a third-generation blockchain experiment into a highly efficient, scalable platform supporting smart contracts, DeFi, and staking. In 2025, Cardano remains one of the most prominent and accessible Layer 1 blockchains for staking and yield-generating opportunities.

With its proof-of-stake consensus and robust network fundamentals, ADA holders can earn attractive yields through staking, liquidity provision, and emerging DeFi strategies. For both crypto enthusiasts and beginners, Cardano offers a blend of stable staking rewards, DeFi yield farming, and growing ecosystem protocols, delivering yields ranging from 3% to 8% APY on average.

In this week’s research, the Demether Research team uncovers the top 3 yield opportunities on Cardano, outlines how to capture them efficiently, and highlights the key risks to consider before deploying capital.

1) Native ADA Staking via Delegation

Yield: 2.5% - 3.0% APY

Cardano’s proof-of-stake mechanism allows ADA holders to delegate tokens to top-performing staking pools such as StakeFish or Kiln. Rewards are distributed every epoch (~5 days).

Benefits: Low risk, no lock-up, rewards in ADA

Tips: Choose pools with low fees and non-saturated capacity from reputable companies to maximize rewards

2) Liqwid Finance Lending & Borrowing

Yield: 2% - 3% APY

Liqwid allows users to lend ADA and stablecoins while borrowers pay variable interest rates. Rewards are distributed frequently, supported by a robust smart contract infrastructure.

3) Minswap Liquidity Pool Farming

Yield: 4% - 15% APY (depending on the pool)

As a decentralized exchange (DEX) on Cardano, Minswap rewards users with MINS tokens for providing liquidity.

Note: Higher yields come with impermanent loss risk, so pool choice is crucial. Also be careful of pairing with low-liquidity stablecoins or memes: initial returns may appear attractive but do not take into account the risk of a sustained depeg or extreme price volatility.

1) Select and download a wallet
Choose wallets with native Cardano support for simplicity and security, for instance: Yoroi, Daedalus, Nami Wallet.

2) Acquire ADA
Purchase ADA via a centralized exchange or wallet-integrated fiat onramp.

3) Choose your yield strategy

• Native staking: Delegate ADA via Yoroi or Daedalus

• CEX staking: Deposit ADA into Binance or Coinbase Earn or native staking on such platforms

• DeFi yield farming: Provide liquidity or deposit into ADA-based vaults (e.g., ADAX, Minswap)

4) Deposit into the protocol
Follow official documentation for staking or liquidity provision. Confirm contract URLs for DeFi vaults and know which strategy you are exposed to.

5) Monitor yields and network conditions
Track APY fluctuations, pool performance, liquidity, and contract risks using wallet dashboards or protocol-specific trackers. Adjust allocations if necessary to optimize returns.

• Network/Protocol Risk: Downtime can reduce yields or delay rewards. Mitigation: Stake with reputable pools or CEX platforms.

• Smart Contract Risk: Bugs or exploits in DeFi vaults can result in loss. Mitigation: Use audited protocols.

• Liquidity Risk: LP tokens may experience impermanent loss or withdrawal delays. Mitigation: Allocate moderate amounts.

• Delegation Risk: Poor-performing pools reduce returns. Mitigation: Rotate between top-performing pools.

• Market Volatility: ADA price swings impact fiat value of rewards.

• Saturation of Pools: Overcrowded pools pay lower rewards.

• Scams/Rug Pulls: Particularly in high-APY yield farming projects.

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.

Cardano ($ADA) has evolved from a third-generation blockchain experiment into a highly efficient, scalable platform supporting smart contracts, DeFi, and staking. In 2025, Cardano remains one of the most prominent and accessible Layer 1 blockchains for staking and yield-generating opportunities.

With its proof-of-stake consensus and robust network fundamentals, ADA holders can earn attractive yields through staking, liquidity provision, and emerging DeFi strategies. For both crypto enthusiasts and beginners, Cardano offers a blend of stable staking rewards, DeFi yield farming, and growing ecosystem protocols, delivering yields ranging from 3% to 8% APY on average.

In this week’s research, the Demether Research team uncovers the top 3 yield opportunities on Cardano, outlines how to capture them efficiently, and highlights the key risks to consider before deploying capital.

1) Native ADA Staking via Delegation

Yield: 2.5% - 3.0% APY

Cardano’s proof-of-stake mechanism allows ADA holders to delegate tokens to top-performing staking pools such as StakeFish or Kiln. Rewards are distributed every epoch (~5 days).

Benefits: Low risk, no lock-up, rewards in ADA

Tips: Choose pools with low fees and non-saturated capacity from reputable companies to maximize rewards

2) Liqwid Finance Lending & Borrowing

Yield: 2% - 3% APY

Liqwid allows users to lend ADA and stablecoins while borrowers pay variable interest rates. Rewards are distributed frequently, supported by a robust smart contract infrastructure.

3) Minswap Liquidity Pool Farming

Yield: 4% - 15% APY (depending on the pool)

As a decentralized exchange (DEX) on Cardano, Minswap rewards users with MINS tokens for providing liquidity.

Note: Higher yields come with impermanent loss risk, so pool choice is crucial. Also be careful of pairing with low-liquidity stablecoins or memes: initial returns may appear attractive but do not take into account the risk of a sustained depeg or extreme price volatility.

1) Select and download a wallet
Choose wallets with native Cardano support for simplicity and security, for instance: Yoroi, Daedalus, Nami Wallet.

2) Acquire ADA
Purchase ADA via a centralized exchange or wallet-integrated fiat onramp.

3) Choose your yield strategy

• Native staking: Delegate ADA via Yoroi or Daedalus

• CEX staking: Deposit ADA into Binance or Coinbase Earn or native staking on such platforms

• DeFi yield farming: Provide liquidity or deposit into ADA-based vaults (e.g., ADAX, Minswap)

4) Deposit into the protocol
Follow official documentation for staking or liquidity provision. Confirm contract URLs for DeFi vaults and know which strategy you are exposed to.

5) Monitor yields and network conditions
Track APY fluctuations, pool performance, liquidity, and contract risks using wallet dashboards or protocol-specific trackers. Adjust allocations if necessary to optimize returns.

• Network/Protocol Risk: Downtime can reduce yields or delay rewards. Mitigation: Stake with reputable pools or CEX platforms.

• Smart Contract Risk: Bugs or exploits in DeFi vaults can result in loss. Mitigation: Use audited protocols.

• Liquidity Risk: LP tokens may experience impermanent loss or withdrawal delays. Mitigation: Allocate moderate amounts.

• Delegation Risk: Poor-performing pools reduce returns. Mitigation: Rotate between top-performing pools.

• Market Volatility: ADA price swings impact fiat value of rewards.

• Saturation of Pools: Overcrowded pools pay lower rewards.

• Scams/Rug Pulls: Particularly in high-APY yield farming projects.

Demether provides frictionless access to yield opportunities on real world assets. We are backed by Web3 native investors and founded by a team hailing from JPMorgan, Goldman Sachs, Bank of America-Merill Lynch, Animoca Brands, HSBC, Rocket Internet and Google.

Our webapp and native mobile apps will be launching soon. Sign up for our waitlist at https//:demether.io and follow us on X.com/DemetherDefi for the latest news.