Don't wait anymore! This is the reason why you should farm "FARM" on Harvest Finance #CropSpotter

Don't wait anymore! This is the reason why you should farm "FARM" on Harvest Finance #CropSpotter

By ilmizer | jumail | 10 Feb 2021


<a href='https://www.freepik.com/vectors/people'>People vector created by pch.vector - www.freepik.com</a>

Yield Farming is a hot topic of discussion among fans of the crypto ecosystem today. How come? with yield farming which is part of the Decentralize Finance (DeFi) ecosystem, allowing you to be able to “generate” crypto-assets more fully. Curious? I will review it in this article.

🚀 What is Yield Farming?
In simple terms, Yield Farming is an activity to get more crypto using the crypto you have. How to?
The analogy is like a deposit in a conventional bank. When we deposit money, we will get more money which is called interest as reciprocity. It's just that, yield farming cryptocurrency is done using a smart contract and it is decentralized.

Yield farming offers crypto users a new way of multiplying assets. You can get two benefits at once: can hold and at the same time "employ" your crypto to give more results. Interesting right? This is more profitable than just storing crypto and leaving it alone, it's definitely more beneficial if we can make it work for us. Like passive income.

Even though it looks easy, yield farming is not suitable for beginners. The process that goes through is not as easy as it seems, there are many things that need to be considered and done if you want to become a Yield Farmer. At least you must already understand the cryptocurrency ecosystem and have a little technical expertise, such as fundamental and technical analysis. In addition, it requires sufficient capital so that maximum profits do not run out of gas fees. Therefore, you need to develop a strategy so that your assets develop optimally according to expectations and not vice versa, running out of nothing.

🚀 How Does Yield Farming Work?
Yield farming looks like staking, but there is a lot more to it. Yield farming will work when Liquidity Providers (LPs) acting as users place their crypto assets into a liquidity pool or Liquidity Pools.

The liquidity pool is a smart contract that contains funds that act as a place or market when LPs lend their assets, borrow them from other users, or simply for asset exchange. In return for providing funds in the liquidity pool, the liquidity providers will get a reward (yield).

🚀 What are the risks of yield farming?
Speaking of risks, Yield Farmers often encounter bugs which make them very vulnerable to hacks or attacks. The risk of bugs in smart contract programming is huge because many DeFi platform developers are built by small and inexperienced teams, with limited budgets.

With a fairly complicated system, yield farming is actually not suitable for beginners. There are many aspects that need to be analyzed and studied, all of which require experience and good technique.

On the other hand, blockchain developers see a good opportunity in this niche. So they are competing to create a platform that can connect various smart contracts to create greater profit opportunities. Unfortunately, for most people, this is moving too fast and making it difficult, and it is becoming increasingly difficult for smallholders to reach it because of the increase in gas fees.

To solve these two problems, Harvest Finance is here to present a user-friendly ecosystem at a low cost.

3d31a4ab5100a88d67e0c61cd5feb97fa9bfa26c7ca96dc2340461e4ed3f767f.jpg

🚀 What is Harvest Finance?

Harvest Finance is a DeFi protocol that collects user funds in a pool, then uses it in yield farming to get the highest yield with low gas fees, making it easier for small investors and new users.

The platform currently supports top stablecoins such as USDT, DAI, USDC, etc. Apart from that, there is also CRV: STETH, CRV: RENWBTC, and many other farming options which you can find on the main page.

All Harvest Finance investments are basically vaults - smart contract yield farming, vault contracts are designed to be able to make changes without having to withdraw funds and redeposit, thus saving gas fee per user up to thousands of dollars in the long run. This can maximize profit opportunities.

In general yield farming, farmers need to claim their prizes manually, then sell their main assets, and re-deposit funds to a smart contract to "compound" income, this process requires high gas fees. Harvest Finance offers an interesting solution: by creating a command called "DoHardWork". DoHardWork automates this process so it can save costs while doing it, can be used once a day, effectively giving users higher interest.

🚀 Why do you have to farm FARM?

Unlike most other merged agricultural protocols, Harvest has an additional element: FARM token. FARM is a token that is distributed to providers of funds to the pool, liquidity providers for FARM-crypto trading pairs on decentralized exchanges, and coins that are constantly being bought back. 30% of the profits generated by the farm are used to buy FARM, which means the coins basically pay dividends to the holders. This strategy not only helps the market to maintain FARM prices but also acts as an incentive for farmers. Based on these facts, FARM farming is an excellent opportunity to turn a profit.

At this time, there are approximately $ 807 million of assets deposited in the Harvest Contract, generating approximately $ 121 Million per year in yield. 30% of the $ 121 million will be converted to FARM, which means that $ 36 million of FARM will be bought back from the market within a year. That's nearly $ 98,000 per day taken off the market and paid back to the FARM staker as a holder's incentive.

Isn't that amazing?

 

In conclusion, FARM staking is a farming method that provides many benefits at once. This is because all farming strategies are designed to contribute to FARM buybacks. You also need to know that Harvest Finance has also been audited by a trusted professional institution, so all activities you do to maximize farming in Harvest Finance are guaranteed safety.

41a6cca75a3d30a2830475fcee10df1aac1c73fae53874ed605624e64f9a5204.jpg


For more information about Harvest, please visit the official community here:

☑️ Reddit: https://www.reddit.com/r/HarvestFinance/

☑️ Medium: https://medium.com/harvest-finance

☑️ Discord: https://discord.com/invite/R5SeTVR

☑️ Twitter: https://twitter.com/harvest_finance


 


ilmizer
ilmizer

crypto enthusiast


jumail
jumail

news and reviews

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.