Harvest Finance is a decentralized finance protocol on the Binance Smart Chain. In July, 2023, its second version was launched, in which the emphasis was shifted to versatility and ease of management. At its core, the protocol offers the services of an aggregator of profits from other DeFi protocols – there are already more than 100 of them. The platform provides yield farming service, as it automatically collects the best profit that can be obtained from the underlying assets deposited by the user.
FARM is the governance and economically useful token of the Harvest Finance project. Provides a major incentive to use the protocol by offering investors a fee based on site usage activity. The VR Soldier experts examined the features of the project in more detail. When the FARM token was listed on Binance, this instantly led to a 391% increase in its price; the course was subsequently corrected.
How Harvest Finance works?
As an automatic yield farming protocol, and to make a profit using the Harvest Finance protocol, go to the site and select which asset you want to deposit. These could be stablecoins, tokenized Bitcoin, Uniswap LP tokens and much more. Once you make a deposit, you will start earning interest and FARM tokens. In turn, the FARM token can be contributed to the profit sharing mechanism to participate in profitable farming.
Tokens with the letter “f” such as fDAI, fUSDC, fWBTC are income-generating versions of popular underlying assets. They are valued automatically and can be exchanged at any time for the underlying asset – DAI, USDC, WBTC.
|Note: As a rule, the balance grows steadily, but if the market situation is unsuccessful, temporary losses are possible.
Now you can stake fUSDT in the same way to earn FARM token. Or, over time, you can convert your f-tokens back into the underlying assets. This is done using the Unstake & Claim function.
At the time of the launch of Harvest Finance on September 1, 2020, the FARM token was also launched with the main goal of incentivizing users to engage in profitable farming within the protocol. One of the main innovations of this asset was that it gave owners the right to receive performance fees in the protocol. The profitability in this case depends on the chosen investment strategy.
Where to buy, sell and store FARM?
Here are a few lists of the most popular exchanges for purchasing assets including Binance, Coinbase, KuCoin, MEXC Global, Gate.io, Uniswap, PancakeSwap, Sushiswap, and 1inch.
Yield Farming Potential with Harvest Finance
Yield farming is the practice of staking or lending crypto assets in order to generate returns or rewards in the form of additional cryptocurrency. Harvest aggregates yield opportunities and lets users deposit any token from their wallet to get started.
As one of the original DeFi yield farming platforms established in mid-2020, Harvest Finance is designed to maximize your earnings. By pooling assets and optimizing network costs associated with auto-compounding, you can enjoy maximized returns, reduced gas costs, and a user-friendly experience for various yield-generating opportunities.
It is noteworthy that even despite a major hack at the beginning of its work, the Harvest Finance project was able to stay on the top and even maintain the trust of users – largely due to the coordinated actions of the team and subsequent compensation payments. Today it is an actively developing and one of the largest DeFi aggregators. With the release of the FARM token on the Binance exchange, the protocol is guaranteed a new wave of popularity. However, no one ever guarantees that the hack will not happen again (this applies to absolutely any DeFi platform). Therefore, be careful and invest in reasonable amounts, and promptly withdraw your profits to a decentralized wallet.