LP tokens appreciate in value as the pool increases in liquidity.Īnother cool feature that users enjoy is access to liquidity mining rewards. Notably, LP tokens can also be staked to further improve your rewards. These auto-farming vaults enable users to stake their LP tokens to secure rewards. The main feature of the platform is the Harvest Finance Vaults. Instead, the team chose to issue tokens weekly to provide a fair opportunity to all. Additionally, they didn’t seek out investors. Notably, there were no developer pre-mines for the project. Since your rewards are paid in FARM tokens, the process is simple.Īnother unique aspect of the platform is the level of transparency the development team has shown. The network integrates an auto-compounding system that takes your rewards and automatically re-stakes them. One of the biggest advantages Harvest Finance brings to the table is the fact that it creates a wealth generation loop. Additionally, the community can approve expenditures for the network via the governance mechanism. These fees go towards buybacks and rewards for stakers participating in the profit-sharing pools. The developers re-circulate DEX and farming fees throughout the community. As the network grows, it will be able to secure even more advantages. The protocol is able to accomplish this task because it pools users’ funds together to get the best rates and fees. Harvest Finance’s strategy helps investors maximize returns. Instead, you simply deposit funds into Harvest Finance and they do the heavy lifting for you. You don’t need to spend the next month learning various yield farming strategies. There are many benefits you gain when using Harvest Finance. Notably, since its launch, the system has saved users +$50m in gas costs. Harvest Finance provides a yield optimizing alternative that eliminates these costs. If not monitored, you can even take a loss. These gas fees can end up eating away at your profits. Manual farming has another downside, there is a fee generated every time a person manually transfers funds across networks and pools. This strategy improves the usability of the platform considerably as the protocol monitors over 100 different farms simultaneously. Harvest Finance’s multi-chain approach acts as a bridge to connect investors to Ethereum, Binance Smart Chain, and Polygon. At this time, there are a variety of DeFi ecosystems that operate as islands. The protocol automatically farms the highest yield by moving funds between farming pools on your behalf.Īnother major issue that Harvest Finance helps to solve is the lack of interoperability in the market. Harvest Finance changes the game by eliminating the workload. The manual effort and overall inconvenience of the process limited its adoption to only those who have a firm understanding of the DeFi sector to this point. If done correctly, it can be more profitable than staking. Farmers switch between pools in search of the highest returns. As such, farming requires you to monitor multiple pools to find the best-paying ones. Since your funds are not locked up, there is no predetermined reward. However, unlike staking, farming has no lockup periods. In return, you receive rewards in the form of tokens. For one, you need to provide liquidity to a smart contract. Farming is similar to staking in many aspects. One of the main issues that Harvest Finance was created to reduce is the amount of labor required to DeFi farm effectively. What Problems Does Harvest Finance Solve? Together, these components create an immersive, low-risk, user-centric decentralized experience. The combines auto-farming vaults, liquidity mining, P2P lending, and more. The Harvest Finance ecosystem leverages a variety of different protocols to create an easy-to-use DeFi alternative. The network consists of a cooperative of users that pool resources across a decentralized network that leverages multi-chain smart contracts to direct user funds to the pools with the highest APYs. This advanced protocol helps to simplify DeFi (decentralized finance) investing by streamlining the core processes for yield farmers. Harvest Finance (FARM) is a multi-chain yield aggregator.
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