Hi fellow degenerate farmers. Just another De(gen)Fi farmer here. I just want to share with everyone my view of the wonderful farming machine that the team at @harvest_finance have built and hopefully convince you why YOU SHOULD HOARD $FARM OR DIE TRYIN'. Don't believe me? Believe Curtis. He loves it just as much as I do.
1. The "Harvester" Tab (AKA the MEMECOIN HARVESTER)
The "Harvester" Tab is the third tab on harvest.finance. On the second week after launch, the previous shitty "Bread" Tab was upgraded to the "Harvester" Tab. This grand evolution changed its function from lowly airdrop machine to MEMECOIN HARVESTER. Before the upgrade, farmers from all across De(gen)Fi could simply deposit their memecoins and get free $FARM. To the minds of these farmers, $FARM was worth far less than their precious memecoins because they got $FARM for free. Thousands of innocent $FARM were dumped as a result. This caused the price of $FARM to fall from $5000 to $112 during the first week after launch. Poor innocent $FARM. Death by memecoins, the worst death imaginable.
In week 2 however, $FARM struck back. With the upgrade to the MEMECOIN HARVESTER through the addition of 90/10 memecoin/$FARM balancer pools, farmers who wanted to get $FARM were forced to first convert 10% of their memecoin capital to $FARM. For example, if a farmer has $1000 worth of memecoins and wants to use them to get $FARM, he has to first buy $100 worth of $FARM using his precious memecoins. If there were 100,000 farmers each with $1000 memecoins... well you can do the math. The MEMECOIN HARVESTER sucked up 10% of all memecoin capital, converted it to rocketfuel to pump $FARM. The innocent $FARM were saved!
Another function of the MEMECOIN HARVESTER is the weekly memecoin rotation. Every week, $FARM holders decide which memecoins to use as fuel to pump $FARM to infinity and beyond. This ensures that there will be a constant supply of memecoin fuel to power the $FARM rocketship to the moon. If you are a fellow $FARMER like me, I urge you to participate in the weekly poll for the memecoin rotation because YOU are choosing the next victims of the MEMECOIN HARVESTER. No memecoin should be left alive. Death to all memecoins! BURN!
As the $FARM rocketship flies closer to the moon with the help of the MEMECOIN HARVESTER, this also increases the APY shown on the "Harvester" Tab. The ever-increasing APY is a trap for future memecoin holders to sacrifice their memecoins to ensure the $FARM rocketship gets to the moon.
(P.S. I heard on the grapevine of the harvest.finance discord that the MEMECOIN HARVESTER may be put out of commission soon. Why? Because the $FARM rocketship is becoming self-sustaining and Memecoin fuel is too weak to power the full weight of the $FARM rocketship.)
2. The "Farm" Tab (AKA the WHALE CLUB)
The "Farm" Tab is the first tab on harvest.finance. As all of us degenerates know, there is a limited supply of stablecoins (e.g. USDT, USDC and DAI) and BTC in the crypto-verse and every De(gen)Fi farming project is fighting for the same thing - Total Value Locked (TVL). TVL is typically increased by stablecoins and BTC being deposited into the particular farming project.
The "Farm" Tab appeals more to stablecoin and BTC whales who do not want to risk their capital and get free money. Although APY is typically lower in the WHALE CLUB, rewards are paid in the deposited currency, which greatly lowers the risk of losing capital. Also, it costs quite a bit of gas to deposit stablecoins and BTC into the WHALE CLUB. Because of this, whales with huge amounts of stablecoin or BTC capital with a lower risk tolerance will benefit the most from the WHALE CLUB.
What the team at @harvest_finance have done with the WHALE CLUB is to provide the highest possible APY possible for the largest proportion of liquidity in the crypto-verse, which are the stablecoin and BTC whales. BTC dominance remains high at 55% and stablecoins will always have value with their (almost) 1-1 peg with USD (i'm looking at you, DAI). As time goes on, BTC whales will continue to be drawn in by the high APY that DeFi provides and turn their BTC into wBTC or renBTC. The recent addition of maximum swerve APY also greatly increased the stablecoin APY in the WHALE CLUB to ~400% APY. Best part of this is, stablecoin whales can enjoy maximum swerve APY WITHOUT LOCKING ANY SWRV and WITH ADDED $FARM REWARDS ON TOP OF SWRV APY. Must be nice being a whale in the WHALE CLUB... Swimming in all that money.
As the price of $FARM increases, the WHALE CLUB only benefits more with higher APY, which draws in more whales to join the WHALE CLUB. As more whales join, it would become harder and harder for other De(gen)Fi farming projects to compete with $FARM due to the high TVL of harvest.finance. In 12 DAYS, the TVL of harvest.finance has grown from $0 to USD$498,000,000, which places it at No. 9 on the DefiPulse TVL all-time rankings (why this is not reflected on DefiPulse is beyond me). As harvest.finance climbs the ranks of the TVL ladder, more whales will also feel assured that it is safe to park their capital in the WHALE CLUB.
(P.P.S. I heard on the grapevine of the harvest.finance discord that the devs are planning to add an ETH strategy soon... Seriously? Are they looking for crypto domination after 12 days?)
3. The "Earn" Tab (AKA the $FARMER'S DREAM)
The "Earn" Tab is the second tab on harvest.finance and what I want to talk about is the Profit Sharing V2 pool. The rest of the "Earn" Tab is quite self-evident with the LP pools and the pools you deposit your fAssets.
In week 1, the Profit Sharing was only 5%, which did not incentivise people enough to hold $FARM. As everyone saw the price of $FARM drop from $5000 (damn you memecoins!), there was a mad rush to sell $FARM and lock in as much profit as they could. The existence of a 95/5 USDC/$FARM balancer pool did not help things, as farmers could risk only 5% of their capital in $FARM and get an extremely high APY of over 1000%. Farm and dump was the name of the game in week 1.
At the end of week 1, breadflation was at an all-time high and $FARMERS were forced to act. A vote was passed to increase Profit Sharing from 5% to 30%, and the Profit Sharing V2 pool was born. The upgrade to 30% profit sharing turned it into every $FARMER'S DREAM. Why? It is the only pool in harvest.finance which scales both with (1) increasing TVL and (2) $FARM price. How Profit Sharing V2 works is that when the function doHardWork() is called, 30% of all profits from the WHALE CLUB is used to MARKET BUY $FARM and distribute this $FARM to the $FARMER'S DREAM. As the WHALE CLUB grows in membership, more profit is used to scoop up precious $FARM from the circulating supply, which not only increases the APY of every single pool in harvest.finance, but also GIVES ALL THIS BENEFIT TO THE $FARMER'S DREAM.
I have only analysed the growth of the $FARMER'S DREAM rewards pool for 5 days, but it has grown from 8,600 $FARM to a whopping 22,606 $FARM. Compare that to the USDC/$FARM uniswap pool, which started out this week at ~16,500 $FARM and will just keep decreasing every week. Right now, the best way to accumulate more $FARM through vanilla farming is to use the uniswap pool. However, as the price of $FARM increases and TVL grows, every dollar in the uniswap pool will gain less and less $FARM. Compare that to placing your $FARM in the $FARMER'S DREAM, which scales with both TVL and $FARM price. When $FARM emissions become constant at around ~20,000 $FARM a week after week 4 and TVL scales to an obscene amount (it is already quite obscene imo), it is the true $FARMERS, who put their faith in the $FARMER'S DREAM, who will make all their farming dreams come true.
To conclude, the above reasons are why I am so bullish on $FARM and hope that I have convinced you to HOARD $FARM OR DIE TRYIN'. I wholeheartedly congratulate the team at @harvest_finance for their ingenuity and speed of execution and believe that harvest.finance has the greatest $FARMing potential in De(gen)Fi.
If you like this post, consider following farmerjon's son Chad on twitter at @iFarmYourMum. If you REALLY like this post, consider donating some $FARM to farmerjon at 0x38F23DcD254B56a219F2a79510e6892bf5501E0F. I will use it to pay Chad's daily allowance of 0.1 $FARM. He told me he will use it to buy followers and spread the good word of $FARM on CT.