Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
Harvest Finance (FARM) – The Young Farmer’s Gateway to DeFi
Harvest Finance is a DeFi protocol that aims to help yield farmers obtain the highest APY possible by doing nearly all the farming for them.
The DeFi space is expanding like greased lightning and spewing new, leading-edge protocols every day. It isn’t easy to keep pace with the progress, even for those in it since the early days of decentralized finance. So, it is understandable why newcomers are scratching their heads about yield farming, harvesting, gas costs, and APY tracking.
Fortunately, there is one platform where they can learn the ropes of DeFi while their assets’ value enhances, and its name is Harvest Finance. This asset protocol is among the top-10 DeFi platforms at the moment, with no less than $693 million in locked value as of December 2020.
Harvest is all about maximizing yields with minimal effort on your side. If you are the passive investor type, you may find this protocol the most approachable entry into the promising world of decentralized finance.
What is Harvest Finance?
Harvest Finance Project is a DeFi protocol that helps users capitalize on their yield farming without keeping an eye on the market 24/7. The protocol takes the deposits and automatically puts them to work on the best yielding platforms in the decentralized finance sector.
Harvest’s goal is to optimize yields by using up-to-date farming techniques and allow its users to maximize their annual percentage yields (APYs).
Harvest Finance uses a governance token called FARM, which enables holders to vote on community proposals and the FARM treasury’s functionality. In return, they receive up to 5% of the fees in FARM that come from Harvest operations.
Harvest is a convenient gateway for beginner crypto enthusiasts who don’t have the experience or know-how to track DeFi protocols for the lowest gas costs and highest potential yields.
Who is behind the Project?
There isn’t much information on who the Harvest Finance developers are. The only hint about the mastermind behind Harvest comes from the project’s GitHub page, which acknowledges Andre Cronje’s contribution, a leading Yearn Finance developer and a prominent name in the DeFi space. Nevertheless, the protocol was audited by Haechi Audit and PeckShield, and it benefits from their backing.
The Harvest Finance Token (FARM)
FARM is an ERC-20 token built on the Ethereum blockchain, and it is the native currency on the Harvest Finance platform.
Harvest launched FARM without an Initial Coin Offering (ICO) or support from venture capital firms. On the date of its release, September 3, 2020, the token began from 0 units in supply and trading at nearly $420.
The developers predict that in the next four years, there will be almost 700,000 FARM in circulation. However, there is already 327,246 FARM in circulation out of a total supply of roughly 369,000 FARM at the time of this writing. A good deal of tokens end up burning to control inflation, but still, its rapid ascent is impressive in less than three months after the official launch. One FARM is currently trading for nearly $90.
If you want to purchase FARM, you can do so at various exchanges like Uniswap, Paraswap, and DeBank. Once you buy it, you can store FARM in crypto wallets like Trust Wallet and Ledger Nano S.
Once you become a FARM holder, you can profit share in the yield farming revenue and increase your FARM holdings by providing liquidity in Uniswap.
How Harvest Finance works
Harvest enables you to deposit tokens from a wide selection of supported cryptocurrencies and make them work in potentially high-yield DeFi pools. You can put in DAI, USDC, WBTC, and other supported assets, and in return, you receive an fAsset (fDAI, fUSDC, fWBTC), which gains a proportional share of the farming revenue
. The ones who benefit the most from using Harvest are the first-time crypto farmers who get a pass on calculating transaction fees or moving assets between DeFi protocols independently. Instead, Harvest performs these tasks together through audited smart contracts and saves users from the trouble of doing them manually.
On Harvest Finance, farmers can lay back and watch as the protocol handles APY tracking and transaction costs without risking their deposits’ safety.
The protocol also enables users to stake their assets on various farms by using any of its supported cryptocurrencies, including Sushi, Compound, and REN.
FARM Pools
Harvest users have a broad range of tokens they can choose from when depositing in the protocol’s pools. Among them are both DeFi tokens like Curve, WBTC, RENBTC, and Uniswap and traditional cryptos like USDT, USDC, DAI, WETH, and TUSD. The users receive rewards for providing liquidity, which differ depending on the pools they choose.
Harvest Finance Governance
All the Harvest platform participants have the right to vote on decisions and proposals that might affect the entire Harvest community. As FARM holders, they can vote on core changes to the Harvest Finance protocol or upgrades to the user interface.
The Bottom Line – A Guide to Harvest Finance
At first sight, Harvest Finance looks like an overnight DeFi success bound to vanish just as quickly as it emerged. However, once you start peeking under its hood, you realize that it is a developers’ endowment for first-time farmers who have just learned how to spell “cryptocurrency” correctly.
The platform offers to do most of the work in yield farming while providing top-notch security for the users’ deposits. The high level of protection results from the expert backing from two industry-leading audit firms like Haechi Audit and PeckShield.
Harvest is also on the lookout for fruitful investments and partnerships through its Council of 69, a department whose sole mission is to enhance the benefits for Harvest farmers from future projects.
Countless scams disguised in DeFi protocols appear on the market every month. Having a protocol that does its best to teach new users about yield farming safely and in a friendly way is exactly what the cryptocurrency industry needs to increase its relevance and credibility.
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