On-chain yield comes in many shapes and forms, some more lucrative than others. However, as always, high risk comes high reward. Yield sources such as LP farms provide higher APR but are of higher risk and require more active management. In contrast, LSTs and traditional staking are more friendly for beginners or long-term holders with lower risk appetite.

Let's take a closer look at the pros and cons of LP farming and LSTs below:

It is clear that LP farming, especially for Uni v3 style/CLMM LPs are catered towards DeFi power users due to its complexity. Fortunately, LSTs also provide decent yield for users who are simply looking to optimise capital efficency.

Crypto, often dubbed "The Wild West", is full of opportunities and various yield sources. However, keep in mind that there is no free lunch in this world. Remember to do your due diligence and check where the underlying yield is coming from to avoid getting farmed.

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The information provided is this article is for general informational purposes only and does not constitute professional nor investment advice.