Harvest Finance: Points its Buyback Feature at Bancor

Harvest Finance: Points its Buyback Feature at Bancor

By Cje95 | Chronic Illness and Crypto | 29 Aug 2021


One of my personal favorite things about Harvest Finances Platform is the buyback mechanism that they have. When a farmer makes a deposit into whatever farm that they chose that farmer will earn back 70% of the profit from what they deposit. The remaining 30% in a round-a-bout way still go to the farmer but it is not directly like the additional DAI or whatever coin/token is chosen. 

 

The remaining 30% goes to buying FARM on the open market. This is the buyback mechanism that I mentioned and by doing this the platform supports its governance token FARM! Now for the longest time and like most people would think the biggest pool of FARM was on Uniswap however a couple of weeks ago that changed!

 

Bancor became the new deepest pool for Harvest's FARM so with this being flush with FARM it only makes sense to gobble up some of that extra FARM! This is smart on a multitude of levels but most importantly if one area becomes so flush with an asset like FARM it could lead to the price of FARM falling due to price pressure in that pool. That price fall could then spiral into other pools and thus lead to just widespread price collapse.

 

Aware of this the Devs took care of the issues and transitioned the buybacks to Bancor. I would assume that soon it will switch back over to Uniswap because of how large Uniswap is but for the time being Uniswap wasn't the deep pool so bam transition over and take care of the extra assets. This also allows Harvest to purchase the FARM cheaper for distribution back to farmers and can lead to the APY in the iFARM pool increase! 

 

These details might be small but they are important for sustainable growth and so it is really amazing to see it transpire! I hope to soon see more Polygon (MATIC) Network farms appear soon as we still only have 3 listed and before I dive in I would like to see some more additions! Maybe this next week could be the week for this to finally happen!

 

 

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Cje95
Cje95

Graduated from Texas A&M in May of 2020 had dabbled in crypto since 2017 but dove in at the end of 2019. December of 2020 packed up and moved to D.C. and shares my growing pains with y’all here! Huge sports fan, space nerd, and international news reader!


Chronic Illness and Crypto
Chronic Illness and Crypto

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