Relatively recently I wrote an article where we looked at the Ampleforth project and how to learn about this. During the process I found I enjoyed the challenge of trying to summarizing information in a concise easy to digest manner. To that end, I have taken this methodology and applied it to the newest member of the Publish0x Family Harvest Finance (or the FARM token).
In this article I've tried to go through the main mechanics of the Harvest Finance protocol and present the information a a straight forward way, which knowing farmers and how busy they already are, I think we can all appreciate.
There are several aspects to the Farming programs over at Harvest Finance. Predominantly though they all resolve around the adding of assets in one form or another to earn yield on the deposits.
The process of pooling your resources with everyone else makes Harvest a cooperative yield farming protocol.
As well as earning in kind or other underlying assets (like compound) farmers can also earn and stake FARM tokens, the native token of the platform. These tokens are predominantly used as a payment mechanism with a maximum supply of 690,420 tokens (478,919.238 currently circulating) which they plan to mint over the course of 4 years.
In order to further generate earnings farmers are incentivized to stake their FARM tokens by the use of a profit sharing mechanism that sees 30% of the profits earned across yield farming on the platform used to 'buy back' tokens on the open market to pay stakers. This creates demand for the tokens on the market and encourages longer term holding.
What the f'Tokens
When depositing assets into pool these are matched up with a an 'f' token version (similar to LP tokens when providing liquidly). Rather than gaining more fTokens over time these appreciate which means when you case out you get back more of the initial underlying asset than deposited.
Easy as 1-2-3
Despite troubles in the past with misuse of the protocol the team have gone to great lengths ensuring the the security by undertaking multiple audits, the findings of which are available on FAQ section of the main site: https://harvest.finance/faq.
Making your idle crypto-assets work for you is the goal of every hodler and with Harvest Finance it actually couldn't be simpler. Rather than transferring funds back and forth between yield earning projects (incurring gas fees), or micro managing our portfolios Harvest does this for us. They are always looking for the best rates so we don't have to.
Additionally, I'm a big fan of the Tokenomics around FARM. The system is set up (with the buy backs) to be self driving, keeping a constant flow out of the general market and helping maintain overall prices. Well played Chad....well played.
Anyway, hope you enjoyed the graphics and learned a little something from them along the way. Good luck y'all!