Good morning PUBLISH0X community and welcome to a new article dedicated to the latest contest of this blog! I'm very happy that Publish0x has given this new opportunity to us authors to try a new contest dedicated to Harvest Finance, after adding the possibility of new strategies with the Binance Smart Chain (BSC).
In recent times we have seen a significant growth of many projects based on BSC and consequently our international cooperative of humble farmers called Harvest Finance, has decided to include the BINANCE Smart Chain.
As you probably know, Harvest Finance is a Decentralized Finance protocol (DeFi) born on Ethereum. On the other hand, in the last period there has been a significant increase in the fees of this network and many people have preferred to stay out of this type of investment. Hopefully, with the next update to Ethereum 2.0, the situation will improve significantly. In the meantime, however, there is this new opportunity to take advantage of the Binance Smart Chain and its very low commissions!
First of all, I'd like to give an introduction on what Harvest Finance is, so that even those who are not familiar with this protocol from DeFi, are aware of what it is and what it deals with.
So, what is Harvest Finance?
Harvest Finance is a new DeFi project, essentially a passive fund. Harvest was created by an anonymous team in August 2020, and it is not a fork of any large platform. Like Yearn, it is an income aggregator, but it does not have a star founder. As a yield aggregator, Harvest's service is arduous. Obtaining stablecoins and LP tokens from investors and putting them into the smart contracts of the leading DeFi platform can reduce the rate of return, but investors can be compensated with FARM tokens. Unlike other yield farming protocols, Harvest has an add-on for token FARM. In summary, 30% of the profits made by companies is used to buy FARM, which means that the currency fundamentally provides “dividends” to the owners.
Harvest lowers the barrier to entry for people who don’t want to track DeFi 24/7, pay gas costs to harvest regularly and move funds between opportunities, etc. Harvest handles the APY tracking, strategy development and auditing, gas costs, and regular harvesting to ensure that returns compound. Holders of the FARM token can profit share in the yield farming revenue, receive incentives for providing liquidity in Uniswap, and vote to help decide the direction of the cooperative.
How to use Harvest Finance?
Navigate to harvest.finance and deposit stablecoins, tokenized bitcoin, Uniswap LP tokens, and other supported assets to start earning interest and FARM. Deposit FARM in Profit Sharing to share in the farming revenue.
Now imagine a young farmer named Billy. Billy in his job, starts sowing seeds in the fields at the beginning of the year then during the following months continues to cultivate and take care of his fields so that they can yield as much as possible. Autumn arrives and after a summer of hard work Billy finally has the opportunity to start harvesting. Finally, after almost a year of work our young farmer has the satisfaction of seeing the fruits of his labor. Here, using Harvest Finance we can compare it to Billy's tale. In the first few months of the year we can transfer our tokens to the platform and put them on stake. During the remaining months we let them work, checking sometimes that everything is going well and if there are changes or new investments to consider and make. Then, at the end of the year, we too might do what Billy did. The only difference is that Billy will have harvested some potatoes, corn and maybe some good vegetables, while our "harvest" will be the interest earned from staking.
Hey Mike but I remember that a few weeks ago the rewards for authors and readers on Publish0x were in FARM and now they've moved to iFARM...what happened?
You probably thought that but no, this is not an Apple’s token!
Think about Billy. He's been working in the fields all year with the old tractor his father gave him and now he could use an upgrade to increase productivity. So, Billy decides to go to the dealership and pick himself up a powerful new, super high-tech, automated tractor. We can consider iFARM as the new upgraded model of the FARM coin.
Both FARM and iFARM are ERC-20 tokens on Ethereum. FARM is a cashflow token for Harvest. It is available on Uniswap. iFARM is a yield-bearing token for Harvest. It can be acquired by depositing into FARM on the front page of Harvest Finance website, with “Use iFARM” checkbox.
This new token, announced at the beginning of February, represents your profit share stake and can be used in DeFi protocols without losing your profit share APY.
Let’s see some benefits of iFARM.
- First of all let’s talk about gas fees. iFARM costs nearly 50% less in gas fees to interact with services of Harvest Finance when using iFARM compared to FARM.
- Then it can be transferred like any other ERC-20 token and continue to earn yield.
- Another important advantage is that iFARM tokens will enable staked FARM to be used as collateral on lending services while continuing to earn yield in the profit sharing pool.
- Besides, the iFARM vault is safe. It has all of the same audits and protections as other vaults.
Well, now that you have an idea of what are Harvest Finance, FARM and iFARM, we can talk about a possible strategy that can be implemented on the Binance Smart Chain on Harvest Finance!
Do you remember our young farmer Billy?
Billy, in addition to growing excellent vegetables, also has a passion for cryptocurrencies and among the various possibilities to earn with them, he also deals with trading. He uses the Spot market for long term trades while for scalp trades he uses USDS-M Futures on Binance, so his profits or losses will be accumulated in USDT. In the last year Billy has had some good satisfaction from trading as well. He found himself at the end of the year with a lot of capital accumulated and wants to try not to hold on to the profits but reinvest them to generate more capital and take advantage of compound interest.
So, he decides to rely on Harvest Finance taking advantage of the new possibility of staking through the Binance Smart Chain (BSC). By doing so, he can earn interest on the deposit made in the platform. You can deposit different tokens for different strategies, but being Billy a scalp trader in USDS-M futures of Binance, he accumulated his profits in USDT and decides to use the strategy that we can find under the section of "Venus".
After choosing the BSC as the network and connecting the MetaMask wallet, Billy can select the “Venus” section to bring up the USDT strategy! After selected, Billy will see that the dashboard will automatically input the total of USDT that he has in his wallet. At the moment Billy can expect to earn 55.75% APY from this strategy!
I mean, the same APY that the banks give us, right? LOL
That’s another way to reinvesting profits from trading and accumulate much more wealth!
Thanks to Publish0x for giving the opportunity to talk about Harvest Finance and some possible strategies in order to introduce this platform to new users!
