Key Info (September 22, 2022)
- Circulating Provide — 666,478 FARM
- Complete Provide — 690,420 FARM
- Sector — DeFi lending and yield farming
- Token Kind — Native token
- Token Utilization — Governance, staking, liquidity mining
- Consensus Algorithm — Proof of Stake (PoS)
- Launch Date — September 1, 2020
- All-Time Excessive — $2,236.04
- All-Time Excessive Date — September 2, 2020
What’s Harvest Finance?
Harvest Finance is a decentralized automated yield farming protocol constructed on the Ethereum community. The platform allows purchasers to deposit their cash and tokens into a spread of various lending swimming pools.
The Harvest Finance protocol supplies two lending swimming pools: an interest-bearing pool and a financial savings pool. The previous allows customers to reap curiosity on the funds they’ve deposited, and the latter permits them to build up rewards for offering liquidity to the platform.
Moreover, the protocol supplies a flash mortgage choice, enabling purchasers to boost loans towards the funds they’ve deposited with out the necessity for collateral.
What makes Harvest Farming distinctive?
The Harvest Farming protocol was created to be intuitive and user-friendly for elevated accessibility to liquidity options. The interface is simple and built-in, whereas the protocol’s whitepaper is concise and coherent.
The platform supplies an enormous array of options and customization choices for all ability ranges, making it engaging to each veteran merchants and newbies.
As well as, Harvest Farming has a number of upsides that enchantment to crypto fans. At first, it’s decentralized, so it’s not inclined to the whims of third-party authorities. This function makes it extra resistant to potential censorship and manipulation in comparison with its centralized counterparts.
Lastly, the protocol was meant to be scalable. The platform can handle a excessive variety of transactions with out encountering lag or downtime. Its structure is constructed to be interoperable with different platforms and protocols, together with Binance Good Chain (BSC) and Arbitrum One.
A short historical past of Harvest Finance
Yield farming grew extra widespread and worthwhile in the summertime of 2020. As a result of this, DeFi customers on the Ethereum community have been compelled to carry out more and more sophisticated and gas-intensive operations to achieve the pledged excessive APY linked with these methods. To permit customers to achieve these excessive yields whereas concurrently saving on fuel bills, Harvest Farming was constructed.
The Harvest Finance protocol was first introduced in July 2020. The objective was to supply a decentralized platform that may allow purchasers to handle their crypto belongings securely.
Having been launched on September 1, 2020, the protocol gained greater than $1 billion complete worth locked (TVL) by mid-October. The event workforce behind the challenge just isn’t recognized, however it possesses intensive data of blockchain expertise and asset administration.
It controls and manages the creation and implementation of latest vaults and new vault methods. FARM, the community’s native token, was given away in a good launch — that means there was no pre-mining — when the challenge went reside.
Having reviewed weekly FARM issuance, the group sought to decrease the weekly issuance charge by 4.45%. As well as, the group requested to cap the utmost provide of FARM tokens at a complete of 690,420. The result of such voting was the burning of as many as 14,850.108 FARM tokens.
The protocol rapidly gained fame and shortly turned one of many thriving protocols on the Ethereum community. With the platform rising in success, the workforce determined so as to add new options and integration. Thus, in December 2020, the Harvest Finance protocol was built-in with Yearn.Finance (YFI), an eminent DeFi protocol. This merge has enabled community customers to swap between crypto belongings and yield rewards.
How does Harvest Finance work?
The nucleus of the Harvest Finance protocol is a so-called vault. It’s a sensible contract that holds deposited crypto belongings and carries out yield-generating methods for its customers.
As of 2022, there have been greater than 30 completely different vaults on the protocol, every of which has a singular technique.
Community customers can deposit any ERC-20 token right into a vault and begin reaping yield rewards instantaneously. As quickly as a consumer deposits their cash right into a vault, they’ll obtain an enough ERC-20 token.
As an illustration, suppose {that a} consumer deposits into the USDC vault, they’ll obtain a fUSDC token. Wrapped tokens (on this case, fUSDC) stands for a depositor’s contribution to the corresponding vault.
The protocol employs a system of oracles to observe the worth of various belongings and place trades accordingly. This permits the vaults to robotically buy belongings at low costs and promote them at excessive ones, thus producing positive aspects with out requiring customers to carry out additional work.
Customers can withdraw their deposits at any time. As soon as the deposits are withdrawn, the related quantity of wrapped tokens will probably be burned.
The earnings from each vault are redistributed to depositors in accordance with their contribution to your entire pool. Such a system supplies customers with passive rewards that may be directed to neutralize fuel or different Ethereum-based charges.
What’s FARM?
FARM is the Harvest Finance protocol’s native utility token which can be utilized for community governance, staking, and liquidity mining.
As a governance token, FARM allows community individuals to create governance proposals and vote for them. This fashion, customers have a chance to form the long run course of the protocol.
Members within the Harvest Farming community can stake, i.e, deposit their FARM tokens within the revenue sharing swimming pools and yield FARM as a efficiency charge in return for his or her participation.
Lastly, customers can select to supply liquidity to LPs to reap liquidity mining rewards, in addition to a portion of transaction charges. Moreover, they will stake LP tokens within the Harvest Finance vaults and yield liquidity incentives in FARM.
The Harvest Finance protocol includes a number of main elements working collectively:
- Efficiency charge sharing
- Auto-compounding
- fCASH.
Efficiency charge sharing
Community individuals who stake FARM within the profit-sharing swimming pools can purchase efficiency charges obtained from the yield farming methods. These charges are then used to buy again FARM tokens and distributed to FARM stakers.
Auto-compounding
FARM tokens which can be given to the individuals are robotically collected, then re-staked to spice up their returns. When this happens, iFARM is issued a deposit receipt for auto-compounding, serving as an interest-bearing token.
fCASH
fCASH permits customers to take out loans with out having to promote their iFARM. Customers present iFARM tokens as collateral and obtain fCASH in return. fCASH will be exchanged for stablecoins equivalent to USDC.
What can FARM be used for?
Developed on the Ethereum blockchain, FARM allows its holders to reap yields on their digital belongings. The challenge affords a set of instruments to allow customers to spice up their returns. The set features a staking pool, plus lending and buying and selling platforms.
FARM’s staking pool lets customers stake their digital belongings and earn yield rewards from fundamental investments. The lending platform allows customers to lend their belongings and reap curiosity on the loans. The buying and selling platform permits customers to commerce varied belongings equivalent to crypto and fiat currencies, in addition to ERC-20 tokens.
FARM worth historical past
Solely a day after its launch, FARM hit its all-time excessive amounting to $2,236. Such a excessive worth was believed to be brought on by Harvest Finance launching with a circulating provide of 0 tokens.
A number of cash went into circulation after the platform kicked off and skyrocketed to excessive costs very quickly. Nonetheless, only some weeks after the discharge, FARM plummeted to about $78. At the moment, the “DeFi summer time” of 2020 was coming to an finish.
In February 2021, in the course of the crypto increase, the token soared to round $410, solely to drop to $43.61 in June 2021.
FARM undoubtedly felt the results of the spring market crash. The token worth once more rose to about $303 in the course of the second wave of the crypto increase in 2021. But, when the wave died down, it once more dragged FARM with it.
Presumably the worst drop in worth was seen in October 2020, when a hack took $24 million from Harvest Finance. Consequently, FARM plunged by 65% in just one hour. This pattern continued in 2022 as properly — by Might, FARM dipped to a low of $33.35.
The Harvest Finance community mints and delivers new tokens each week. 70% of the brand new tokens are distributed among the many customers who present liquidity to the protocol and supply capital for asset administration methods. 10% is meant for the protocol growth, whereas 20% is stored within the growth fund, and infrequently bought by way of Twister Money to refund the builders who created it.
Why select Harvest Finance
The query of why you must select one protocol over one other can’t be helped. Listed below are a few of the the reason why could wish to think about Harvest Finance:
- Safety — the Harvest Finance protocol was developed to be protected and safe, and employs excessive ranges of safety, equivalent to sensible contracts audited by third events.
- Reaping curiosity on crypto belongings — Harvest Finance permits its customers to yield curiosity on their crypto holdings by loaning them by way of the protocol. The rates of interest are dynamic in accordance with provide and demand, so customers can yield aggressive returns on their investments.
- Low charges — the protocol fees low charges for its companies — the transaction charge is as little as 0.03%.
- Being community-led — the Harvest Finance challenge is pushed by the group. It’s open supply, so everybody could make their contribution to its growth.
Harvest Finance opponents
Although Harvest Finance was the second-most standard community on DeFi Pulse, it nonetheless has sturdy opponents price mentioning.
PancakeSwap
Pancake Swap is a primary automated market maker (AMM) and yield farm constructed on the Binance Good Chain community. It’s a decentralized trade that gives quite a few options that allow customers to earn and win tokens. As well as, it’s quick, low cost, and accessible to everybody.
The protocol permits its customers to earn CAKE, its native token, by yield farming, staking, and so-called Syrup swimming pools.
DogeSwap
DogeSwap is a decentralized world trade platform with an automatic pricing and liquidity system. Impressed by the well-known memecoin, Dogecoin (DOGE), DogeSwap was constructed to make DeFi extra environment friendly. It rewards its holders with excessive returns by way of its staking and yield farming ecosystem.
Aave
Aave is an open-source and non-custodial liquidity platform for yielding curiosity on deposits and borrowing crypto belongings. It’s a decentralized cash market protocol by which individuals can participate as depositors or debtors. The previous supplies liquidity to the market in return for passive rewards, whereas the latter can borrow in an overcollateralized or undercollateralized method.
The place to find out about Harvest Finance
To study extra about Harvest Finance, you may go to:
Harvest Finance updates
Along with those who have already been carried out, the Harvest Finance workforce plans to launch a number of new options within the upcoming months. These embrace staking swimming pools and insurance coverage merchandise, in addition to non-custodial wallets. Harvest Finance can also be engaged on shifting to the Polkadot community, as it should profit from Polkadot’s scalability and interoperability options.
To expertise Harvest Finance, purchase or deposit FARM on the CEX.IO net or cell platforms.
