If you’re looking for some high APR opportunities on a rapidly growing new protocol, then take a look at Blackhole on Avalanche. It’s very cleanly designed and easy-to-use, and yield can be earned by providing liquidity, with options to take a simple, low-risk approach, or to use more actively managed strategies by depositing to concentrated liquidity pools.
Avalanche hasn’t received as much attention as some other chains so far this cycle, with Solana and Hyperliquid taking the spotlight (along of course with Ethereum) but Avalanche is not to be overlooked, and on the Blackhole platform there are some huge yield opportunities now on offer.
What Is Blackhole?
Launched earlier this month, Blackhole is already the third biggest Avalanche protocol, with a TVL of $256 million and total volume already reaching above $730 million, meaning it’s becoming a… blackhole for capital on the Avalanche blockchain.
It was founded by EllioTrades and Alex Becker, and developed by SuperVerse, and one of the things you notice when you launch the app is how cleanly designed and user-friendly it seems: if you like your DeFi easily accessible, then this one is for you.
As for what it offers, it’s designed as a liquidity hub so there are liquidity pools from which you can earn some high APRs, and there are various rewards and incentives on offer, with liquidity providers earning the platform’s BLACK token.
Blackhole will have a focus on generating pre-launch liquidity for new tokens through its Genesis Pools feature, it prioritizes a community-driven approach, and it makes use of NFTs (the Singularity veNFT and Supermassive veNFT) for locking up tokens and creating a deflationary supply model, with NFTs providing governance rights.
Before we get started with actually using Blackhole, remember that all the usual DeFi risks are present, including the possibility of frontend attacks, smart contract vulnerabilities, stablecoin de-pegs, and high levels of volatility across crypto and DeFi.
How to Provide Liquidity on Blackhole
First of all, you’ll need to connect your wallet–MetaMask works fine–and remember we’re using Avalanche here so make sure you’re on the right network and that you have some AVAX to cover gas fees.
There is a cross-chain bridge on Blackhole so if you need to move any assets across to Avalanche, you can do that on-platform, and the supported chains are Avalanche, Ethereum, Base, and Sonic. Also, if you need to acquire any particular tokens for the strategy you want to execute, then you can use Blackhole’s token swap function.
To begin earning by providing liquidity click on the Liquidity tab, and you can immediately see how easy it is to navigate this section. By default, all pools are displayed, but there are also four filter buttons: Basic or Concentrated, and Stable or Volatile.
Stable pools–denoted as sAMM–are made up of correlated token pairs, such as two stablecoins, while volatile pools contain uncorrelated pairs and are denoted as vAMM.
Basic Pools
First let’s take the least risky, most straightforward setup by clicking on the Basic and Stable filters. You can then see that the top two stablecoin pairs here are offering APRs of 29.7% and 39.1%, high APRs considering that by sticking to stables you are avoiding volatility risks.
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