Harvest Finance
Harvest Finance is primarily an asset management tool that enables users to maximize returns on harvest vault-deposited assets. Harvest Finance is a classic yield aggregator that uses a wide range of investing methods to deposit and maintain your funds automatically, saving you the burden of sorting through hundreds of different DeFi protocols and pools. As a result, the platform is a fantastic method to make passive crypto income. Furthermore, Harvest Finance enables newcomers to the yield farming industry to get started without being distracted by the various complexities of the business.
The platform was created by an unknown core team of developers in September 2020. The team behind Harvest Finance has deep expertise in blockchain applications and managing digital assets. The goal of the project is to create a decentralized platform where people can safely and securely maintain their digital assets. At the same time, in less than a month, the total value of assets locked on the platform surpassed $1 billion. The anonymous group is responsible for implementing strategies that boost earnings. Not only that, but they also control and make their own vaults.
Lack of Interoperability: The lack of interoperability in the market is one of the biggest problems that Harvest Finance seeks to address. At the moment, there are several DeFi ecosystems that function as islands. The multichain concept of Harvest Finance serves as a bridge between investors and Ethereum, Binance Smart Chain, and Polygon. This strategy makes the platform much easier to use because the protocol can watch over 100 distinct farms at once.
High Gas Prices: Another problem with manual farming is that it ends up costing money every time a person transfers money between networks and pools. These gas fees may ultimately reduce your profits. You may even incur a loss if not properly monitored. Harvest Finance offers a solution that optimizes yield and eliminates these expenses.
fASSETs: The developers of the protocol came up with and pre-programsd a special approach for how each vault should distribute funds to maximize yield. When you put money into a vault, you get fASSETs representing your portion of the Vault's investment Interest: Instead of giving you the interest you've earned, Harvest Finance adds it to the total amount you've invested in a pool on a regular basis. The complete amount is withdrawn just once when you request a claim of your deposit. Security: The platform's time lock function ensures the protection of your funds. The time lock is put on a vault if the underlying strategy has changed.
FARM is Harvest Finance's native utility token, and it is utilized for the following purposes:
Staking: Participants that invest their FARM tokens in the network's profit pools are rewarded with performance fee rewards.
Liquidity Mining: Users can receive liquidity mining incentives (i.e. SushiSwap) and a portion of the DEX transaction costs by providing liquidity to LPs on other DEXs. Users can also invest their LP tokens in the Harvest Finance vaults to earn FARM-based liquidity rewards.
Governance: Holders of FARM tokens have the right to submit and vote on suggestions for the token's governance.
DATE NEWS/EVENTS IMPACT 25/08/2021 Phuture introduces liquidity incentives on Harvest Finance +33% Increase 27/07/2021 Harvest Finance skyrockets following listing on Coinbase +157% Increase 26/10/2020 Over $20M stolen from Harvest Finance after a cyberattack -60% Decrease
Harvest Finance is an interesting project with a lot of growth potential. The platform, which has fallen to a mid-tier position among yield aggregators, is likely to return to a more significant place in the category, at least according to its price projections. The fragmentation of the yield aggregation business creates both difficulties and opportunities for Harvest Finance. The platform's future performance will be entirely determined by how the project team responds to these market fluctuations.
