Best 5 Yield Producing NFT Protocols

Through 2021 into 2022, the excitement in decentralised finance (DeFi) has shifted to the non-fungible tokens (NFTs) market. These NFTs can be created from a piece of digital or real art, an in-game asset or represent value of pretty much anything.

NFTs can even be used to wrap other assets inside a smart vault (such as crypto tokens or a collection of NFTs). The marriage between NFTs and DeFi really is a match made in heaven, and together they are changing the face of finance and revolutionising the way we invest and trade digital assets.

What is a Yield NFT Protocol?

NFTs in their basic form do not earn yield, however when they are used to mint tokens and add to liquidity pools for DeFi, they can earn passive income often at high percentage returns. As DeFi and NFTs are absolutely booming right now, it’s good to know what’s out there and how you could be earning free money.

There are several projects that offer ROI opportunities if you hold NFTs. Here is a list of the 10 best yield-earning NFT DeFi platforms that let you make money with NFTs:

1. NFTX

NFTX: A community-owned protocol for NFT index funds on Ethereum

NFTX is an innovative platform that allows users to create liquid markets for illiquid non-fungible tokens (NFTs). It allows the creation of ERC20 tokens pegged to NFT tokens. Users can deposit their NFTs into an NFTX vault and mint a fungible ERC20 token (vToken) that represents a claim on a random asset from within the vault. vTokens can be used to redeem a specific NFT from a vault. If you deposit a Punk, you get an ERC20 Punk. You can always redeem the ERC20 Punk for a random same category Punk. The ERC20 tokens are tradeable on Balancer pool PUNK- CORE. If you provide liquidity to the pool, you earn fees. So, NFTX enables you to get instant liquidity from your NFTs without having to sell them.

Benefits include:

  • LP and stake minted vTokens to earn yield rewards;
  • better distribution and price discovery for NFT projects;
  • instantly sell any NFT by minting it as an ERC20 and swapping via Sushiswap; and
  • increased liquidity for NFT investors and speculators.

NFTX allows owners to mint their NFT collections and earn yield while also offering pieces of those NFTs for sale as fractionalised tokens – allowing multiple investors to co-own a piece of the digital art. So, for example, if you wanted to buy a CryptoPunk but can’t afford it, you could just buy a portion of one instead. By doing this you can be part of the Punk/ETH liquidity pool and earn a staking APR % without having to own a whole Punk outright. At the time of writing, the APR on staking a Punk was 284.38%.

The NFTX project is a DAO governed by the $NFTX token. For NFTX minting tutorials, visit docs.nftx.org. Watch the NFTX: Fractionalised NFT investing video below to learn more:


2. Charged Particles

Charged Particles is a blockchain agnostic interest-bearing NFT and DeFi protocol.

Charged Particles is an innovative NFT minting platform that allows users to deposit any ERC tokens into any non-fungible token (NFT). NFTs can also hold other NFTs! Users can create an NFT that acts as a container for DeFi yield earning tokens, or create multi-tier NFT game assets with several items encapsulated in one single token. The possibilities are literally endless.

If you want, you can combine multiple NFTs and create a new NFT collection set on the platform. A scarce NFT (eg, art, collectibles, virtual real estate, in-game items, etc) can now be transformed into a basket holding a number of other tokens. You can fuse an interest-bearing token like ‘aDai’ with your scarce NFT, configure principal and program interest. The platform is absolutely NFT agnostic, so you decide what will be your charged particle. Customisable time-locks and programmable yield offer infinite abilities for creativity.

Charged Particles is a DAO governed by the $IONX token. To read more on Charged Particles, go to docs.charged.fi. Watch the video below to learn more about what you can do on the Charged Particles platform:


3. DeFiFarms

DeFiFarms is the First NFT-enhanced DeFi Yield Farm!

DeFiFarms is an NFTs protocol, powerful automatic liquidity acquisition yield farm and AMM decentralised exchange running on Binance Smart Chain. The governance token of the platform is $DEFIY.

NFTs are the new financial technology. The potential of NFTs and the ERC-721 standard in DeFi is endless. DEFIY’s goal is to be a pioneer and one of the first to have this potential be seen by the masses. The cryptosphere moves fast, and before anyone knows it NFTs will be implemented in every new DeFi project.

DeFiFarms uses NFTs to wrap your stake, which you can burn to unstake or simply sell on the DeFiFarms marketplace. This can mitigate impermanent loss if you deem selling the NFT would earn you more than leaving it staked.

Compared to other crypto projects on the market today, here’s what makes DeFiFarms different:

  1. Automatic Liquidity
  2. Automatic Burning Mechanism
  3. Harvest Lock
  4. Anti-Whale
  5. Redistribution of deposit costs
  6. Affiliate Marketing Program
  7. Incentives when Trading

Watch the What is DeFiFarms video below to learn more:


4. Meme

Farm limited edition NFTs

MEME is an experimental protocol mashing up some of the most exciting innovations in DeFi and crypto collectibles. Put your $MEME to work by farming exclusive NFT memes. Stake LP tokens for access to Meme’s batch of legendary cards.

Meme is a passionate community experimenting at the intersection of DeFi and NFTs. Users can stake meme tokens to earn rewards and claim limited-edition NFT art and collectibles. When you stake $MEME tokens, you farm pineapples. When you have farmed enough pineapples you can redeem them for NFTs. Pineapples are non-transferable, and are only redeemable for NFTs on the Meme marketplace. Users can also stake NFTs they already own on Meme, from partner projects, to farm pineapples and claim more NFTs.

$MEME is the native token for Meme.


5. SuperFarm

SuperFarm is a passionate community building at the intersection of NFTs and DeFi

SuperFarm empowers NFT creators, collectors and traders to participate in an NFT marketplace that is open and accessible to all.

Currently Super Farm only has an NFT launchpad and NFT farming available, but the roadmap for 2022 includes NFT generation, an NFT marketplace and trading.


Bonus: Sidus, The City of NFT Heroes

Sidus is a play-to-earn gaming model that brings NFT collectibles and yield farming together under one metaverse

Sidus, The City of NFT Heroes is a new game launching soon, from Sydney developers NFT marketplace NFT STARS.

NFT Collectibles

NFT Heroes is a collection of 7,500 unique NFT avatars. Users can buy Original NFT Heroes for 0.055 ETH each. Heroes must modify their stats and equipment to create Rare Heroes and Legendary Heroes NFTs through upgrade cards that randomly appear on the project’s website and OpenSea.io once a week.

Gaming Metaverse

The game allows users to be involved in the creative process by customising their own NFT Heroes. Each avatar is its owner’s ticket into the NFT ecosystem, where they can craft, play, trade and earn. The game includes fighting battles, in the same vein as Mortal Kombat.

NFT Yield Farming

Sidus offers Galaxy staking in three tiers: Original, Rare and Legendary. By staking NFTs, NFT Heroes can farm NFTS tokens, which is the native token of the NFT marketplace NFT STARS. These tokens can be used to upgrade players avatars’ armour and buy weapons. Heroes will have real value and provide owners with the opportunity to sell multiple assets simultaneously on the marketplace.

Sidus NFT Heroes were created by NFT256 and include more than 500 artists previously involved in Disney, Sony and Marvel projects. To read more, visit the project’s medium page.


Bonus 2: Star Atlas

Star Atlas is a grand strategy game of space exploration, territorial conquest, political domination, and more

Star Atlas is a virtual gaming metaverse that combines blockchain technology, real-time graphics, and multiplayer video games to offer a unique gaming experience. Not only is Star Atlas enjoyable to play, but it gives players the opportunity to generate real-world revenue by earning in-game tokens and selling unique NFT assets.

Star Atlas is a grand strategy hybrid space game with serverless MMO gameplay. All gameplay will be real-time, and it will use the blockchain to give players ownership over in-game items, add economic-based gameplay mechanics, and implement an economic system inspired by decentralised finance. The game’s governance token is POLIS. Star Atlas is built on the Solana blockchain. To learn more, read the medium here.

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