Harvest Finance is a decentralized protocol that helps yield farmers find the most fertile platforms to sow and harvest.
The decentralized finance (DeFi) space is known for its yield farming and liquidity mining programs. Therefore, new platforms are being built, each promising farmers better and more attractive yields than the other. From SushiSwap to Curve to Compound, liquidity providers are spoiled for choice.
Unfortunately, with the proliferation of DeFi protocols, yield farming enthusiasts are torn between platforms considered legitimate by many and those that deliver highly optimized yields. Enter Harvest Finance. Harvest, as the name suggests, is a protocol designed to enable harvesting of earnings from leading and upcoming DeFi platforms.
Below we take a closer look at Harvest and its unique value proposition.
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According to its Github page, the project has no known public members. However, in its FAQ section, Harvest Finance acknowledges the contribution of Andre Cronje, a leading Yearn Finance developer and a prominent name in the DeFi corridors.
While Cronje’s specific contribution is not mentioned, it is said that the top developer has “provided inspiration” and opened up opportunities in the development of DeFi-focused platforms.
What is Harvest Finance?
Harvest Finance is a decentralized protocol that helps yield farmers find the most fertile lands to sow and harvest. After determining the best location for farming, the system uses the latest farming methods to increase yields.
The yield harvesting protocol is inspired by the problems young farmers face, such as B. rising transaction fees, especially when transferring funds between DeFi systems, as well as the complexity of auditing smart contracts.
Harvest Finance is audited by Haechi Audit and PeckShield. Although Haechi found some major and minor issues with governance and other aspects, the Harvest team has since fixed them. This has prompted the two auditing firms to issue a clean health certificate to the protocol.
In addition, the platform removes key barriers to smallholder farming by providing a one-stop platform that can effectively manage APY tracking, transaction costs, and develop a fund deployment strategy while ensuring the security of farmer funds.
Benefits of using Harvest Finance for high-yield farmers
- The platform is audited by renowned smart contract auditors. With security guaranteed, farmers can enjoy the peace of mind they need in the volatile cryptocurrency space.
- In 24 hours, farmers save a total of $500,000 in transaction fees. This greatly improves the profit margin of the yields.
- It’s about maximizing returns. Harvest strives to select the platform that offers the highest returns. This includes conducting a thorough background check on any platform where the protocol intends to provide funds.
- As fake DeFi protocols are rolled out to scam farmers, conclusive due diligence protects Harvest Finance users from such platforms.
- Harvest has a powerful community on leading social media platforms such as Discord, Twitter, Reddit and Telegram.
The Harvest Finance Token (FARM)
The network has a native currency called FARM. It monitors and facilitates the flow of funds throughout the Harvest ecosystem. FARM did not go through a pre-salvage phase and received no support from venture capital firms.
Therefore, the token started with a supply of 0 at launch. The total four-year supply is expected to be 690,420 tokens. To control inflation, FARM is regularly burned. For example, in weeks 3 and 4 of its existence, 14,850 and 5,846 FARM tokens were burned, respectively.
Notably, the token is listed on both decentralized and centralized exchanges. Decentralized exchanges (DEXs) where it is listed include Uniswap, 1inch.exchange, Paraswap and DeBank. Also, FARM is available for trading on Probit, Gate.io, Hotbit and LBank.
Harvest finance pools
Harvest supports a wide range of DeFi-based tokens and cryptocurrencies. For example, it supports tokens from the Curve and Uniswap liquidity pools. Other allowed coins include USDT, WBTC, RENBTC, USDC, DAI, WETH, and TUSD, among others.
In addition, the protocol supports high-yield cryptocurrencies of different platforms. Yield currencies are marked with “f”. For example fDAI, fUSDC, fWBTC. Basically, Harvest Finance harvests these tokens automatically.
The platform is currently undergoing major upgrades that introduce additional features. This consequently leads to the migration of pools from the old version to the new version. For example, when the TUSD pool was launched, proxy contracts, time locks and strategy splitter features were introduced.
Liquidity provider incentives vary by pool and are calculated weekly. Note that assets in the older version on the platform can only receive rewards after migration.
Interestingly, the migration approach used by Harvest saves users the hassle of initiating multiple transactions. This also makes the platform ideal for new yield farmers as the process runs smoothly.
How to rely on Harvest Finance
Let’s start with how to get the platform’s native currency, FARM. For this we use USDC. Assuming you already have some USDC coins in your wallet;
- Transfer USDC to Ethereum’s MetaMask wallet.
- Go to Harvest.Finance on your desktop.
- Select “Connect wallet” and confirm that you need to connect to Harvest.
- Locate the USDC option > Specify the amount you wish to deposit > Approve the transactions.
- After this step, you will receive a corresponding amount of revenue-generating tokens called fUSDC.
- Next, wager fUSDC by clicking “Earn” at the top of the page and selecting “Deposit: fUSDC Earn: FARM”.
- Select stake > Enter amount > Click on ‘Stake’.
- Approve the transaction.
- They’re through – time to bring the bread home.
Harvest Finance and Perpetual Protocol
Harvest invested in Perpetual Protocol through its Council of 69 after a majority of Harvest investors approved the deal. The deal between the two companies resulted in an investment of 50,000 USDC coins for PERP tokens, with the Perpetual network offering a 50 percent discount on the token price.
Note that Harvest, through its treasury fund, is committed to investing in unique projects. The team finds that early investment helps build a mutually beneficial relationship that can later become an opportunity for the entire Harvest community.
For example, by investing in Harvest-Perpetual, Harvest benefits from the platform’s fee refund feature. The Council of 69 is tasked with exploring new investment opportunities such as partnerships and strategic integrations that have the potential to become a formidable force in the future, despite the current low interest rates.
Harvest finance governance
The protocol operates a global autonomous hedge fund. This affects all Harvest farmers engaging in governance-related issues. Among the decisions that require community involvement is deciding whether to update the UI.
Improvements affecting the core harvesting protocol also require farmer involvement. Additionally, making and voting on recommendations requires possession of the network’s native token.
The Harvest Dashboard
Harvest Finance provides a central location where farmers can visually access their activities on the platform. The information in the dashboard includes the connected liquidity pool, the amount wagered and the USD value of all your assets in the log.
Diploma
By acquiring a clean bill of health from two smart contract auditing firms, Harvest Finance provides the necessary security and guarantees that the platform is secure. Security aside, the platform’s approach of seeking only the best fertile land for yield farmers helps avoid many of the frictions associated with transferring funds between DeFi networks.
Among its unique features is the establishment of a Treasury and Council 69, which review and propose investments and partnerships with new projects likely to benefit crop farmers in the future. This approach reduces the amount of investment since the projects are relatively new.
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