By now, everyone has heard of the hype which is Harvest Finance. Harvest Finance is an automatic yield farming protocol that aids investors by taking advantage of the latest DeFi platforms with the highest yield. Most of the investment tools available on the platform are cost prohibitive to the small ordinary investor such as myself. Save one - staking the FARM token. And the genius that is Harvest Finance, recognizing the concept of composability, have upgraded the tractor of staking FARM through the ideation of the iFARM token.
Digressing from the main idea of this article for a moment, what is iFARM anyway? iFARM is a separate ERC-20 token representing the investors share in the FARM Profit Sharing Pool. This Pool, currently earning 57.18% at the time of this writing, is where staked FARM tokens earn auto compounded interest payable in FARM tokens. The beauty of the separate iFARM token issued when FARM is staked is that iFARM can be transferred to other DeFi projects while the staked FARM tokens remain in the Pool accruing interest. However, the mechanics and benefits of iFARM are not within the scope of this article.
So, what did Harvest Finance do here? In a general business sense, a protocol is composable if its existing resources can be built upon and modified to be used for some other purposes. In essence, if composable, the same basic assets within the business may be used for many applications. Applying this concept to the world of DeFi means one token may be used in many applications thereby maximizing return. If composable the investor can collect returns from both trading and staking at the same time thereby doubling the yield. As such, the concept of composability permits investors to maximize their yield by using their tokens in more than one return producing investment.
With the ideation of iFARM, the future for Harvest Finance is, in my opinion, even brighter. As time passes, more and more uses for the iFARM token will evolve. This is just the start for iFARM, the future use cases and DeFi applications of iFARM are boundless. And the concept of composability as applied to both FARM and iFARM should whet the appetite of both developer and investor alike.
I am merely an ordinary small investor who likes to share what I've learned. I am not in any way a financial advisor and as such, do your own research before investing. If you enjoyed this article please like it, comment and/or tip. Feedback is always welcome here.