Is DeFi at a Turning Point With New Swaap Earn Protocol?

A look at Swaap Earn, a new protocol aiming to transform DeFi yield generation with its supercharged liquidity.

Swaap finance coin rolling on top of a bar chart, man ready to catch it.
Created by Gabor Kovacs from DailyCoin
  • Swaap Earn introduces a supercharged liquidity system. 
  • New protocol boosts DeFi yields beyond traditional methods. 
  • Swaap Earn collaborates with AAVE and Lido. 

At its core, decentralized finance (DeFi) is a sector of technical advancement, championing innovation that will someday become the dominant system in financial circles. Even so, DeFi has long been on the sidelines, even in Web3 circles, as centralized exchanges dominate the conversation. However, this has not blunted the drive of protocols operating within the decentralized space. 

Most recently, the DeFi space has seen the launch of Swaap Earn, a new platform aiming to change how liquidity providers generate yields. The platform promises enhanced yields and boosts DeFi liquidity through its new liquidity system. Moreover, the protocol also offers passive investment strategies, aiming to attract a new type of trader to the DeFi space. 

Swaap Earn and Its Impact on DeFi

On Monday, April 8, Swaap Labs announced the launch of Swaap Earn, a new platform for liquidity providers. Emerging when the DeFi landscape is increasingly competitive, Swaap Earn relies on its innovative protocol to carve out a niche for itself. 


What sets Swaap Earn apart is its so-called “supercharged liquidity system.” This protocol is designed to increase yields on already yield-bearing tokens through market-making strategies. This means that investors can benefit from staking returns while also earning by providing liquidity to the market.

These strategies, Swaap Labs claims, are even accessible to users without active position management. Namely, the protocol dynamically allocates these assets across different DeFi protocols, assessing their yield potential. It then selects these protocols based on users’ risk preferences to optimize returns. 

Thanks to this user-friendly approach, Swap Earn hopes to position itself as an attractive option for new investors to DeFi. Recognizing the system’s potential, Swaap Labs has attained numerous partners, including Lido and AAVE, the latter having given a grant to further its development. 

What New Users Need to Know About DeFi Yields

Before deciding to jump into yield farming, prospective investors must be aware of several misconceptions about the space, many of which center around the nature of risk in trading. 


As with all investments, there is no such thing as a risk-free opportunity. While Swaap Earn is designed to minimize risks through diversified and strategic asset allocation, traders are still exposed to the volatility of the crypto market. 

Swaap Earn, like any reputable DeFi protocol, does not guarantee yields. Instead, yields are tied to the movements of the crypto markets and the performance of the chosen protocols and strategies. This means traders are still responsible for picking the strategy that works for them. 

DeFi has the potential to make trading accessible to all types of traders. However, this opportunity comes with a new set of responsibilities for traders, who now have to do their homework regarding investing. 

On the Flipside

  • Despite significant investment in DeFi, centralized crypto exchanges still dominate the market in terms of volume. Current DeFi dominance stands at just 4.4%
  • Investors should thoroughly research the project before entrusting any DeFi protocol with their crypto. This helps reduce the risk of falling prey to hacks and other counterparty risk. 

Why This Matters

Swaap Earn’s approach to yields enables it to open up DeFi to a new audience, expanding its reach and eventually putting it in a position to challenge centralized exchanges and even tradFi. 

Read more about starting yield farming as a beginner: 
How to Kickstart Your Journey into DeFi Yield Farming as a Beginner

Read more about the controversy shaking the STIFL protocol: 
STFIL Team Detained? FIL Token Transfers Raise Concerns

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.