The ever-growing and increasingly lucrative decentralized finance (DeFi) space offers great ways to earn money in a decentralized and trustless way. One of the most popular money-making tools is known as yield farming, where crypto is locked up in investment strategies on the DeFi market in return for fixed or variable interest on those assets. However, with the growth of DeFi and yield farming platforms, it has become increasingly difficult and complex to choose which platform to use for maximizing returns while balancing risk. To ensure that DeFi users continue the growth of the sector and profit from it, various new platforms have taken it into their hands to facilitate the process. One such platform with a lot of weight in the space is beefy.finance (BIFI).
Beefy.finance’s homepage which advertises its reach through a plethora of blockchains and adds fun with farmyard-themed marketing. (Source: beefy.finance)
What Is Beefy.Finance?
Established in the summer of 2020 and launching in October of the same year, beefy.finance (BIFI) is a decentralized, multi-chain, yield farming optimizer that allows its users to earn compound interest on their crypto through a variety of yield farming methods and platforms. This means that beefy.finance acts as a large, decentralized pot that stores its users’ crypto deposits in vaults, then automatically distributes it among the yield farming projects that will earn the best possible rewards.
Beefy.finance’s core aim is to enable its users to “beef up” their crypto holdings by earning more from their crypto. Yield farmers will often scour the Internet looking for the most profitable project, but this takes time, research, and is hard to get right. Beefy.finance on the other hand uses smart contracts to put the invested crypto to work, thereby automating this profit-making process.
To earn the high interests promised by yield farming, a user will put their crypto into “vaults” on the beefy.finance platform. Each vault is then connected to a different yield farming strategy, meaning that one vault might put the assets into liquidity pools (LPs), while another may invest the crypto into automated market making (AMM) projects. Additionally, these vaults can be specific to certain assets, asset pairs, or other yield farming types.
Beefy.finance currently has 249 BSC vaults, with new ones launched all the time (Source: app.beefy.finance)
How Is Beefy.Finance Structured?
The beefy.finance platform is an ecosystem designed to create crypto revenue in a secure and decentralized way. It achieves this through various components and methods, an experienced team, and more. Some of its core components are as follows:
- Trustless: Beefy.finance is built by an anonymous team of developers who, with many years of experience behind them, have built a platform that operates on the basis of “don’t trust, verify.” To do this, they have ensured that all their smart contracts, including governance and token distribution contracts, are live on the mainnet and open to scrutiny. Through this, the Beefy community can not only see their transactions but also ensure that everything is working correctly and as intended. This gives beefy.finance credibility and helps it stay ahead through developer and user input.
- Decentralized: Beefy.finance, as with any DeFi platform, is decentralized and focused on creating a secure financial system with no middlemen taking the lion’s share of the profits. To accomplish this, it has taken inspiration from Ethereum and launched on a blockchain with smart contracts to help run its vaults. However, as beefy.finance is a platform that needs to connect with many yield farming projects to find the most profitable yield farming options, it has launched on a variety of blockchains. Spreading out over multiple blockchains is essential, as each blockchain has its own yield farming projects running on it. In October 2020 it first launched a series of vaults on the BSC and connected with the projects on that blockchain. Following this, it also established vaults on the Avalanche and HECO blockchains, and following this it expanded even further onto Polygon, Fantom, Harmony, and many others. This gives beefy.finance an incredible yield-farming range, meaning it has much better chances of making serious returns for investors.
- Vaults: Beefy.finance’s vaults are essentially its main offering. The vaults are secure locations on the blockchain where a user will deposit their crypto, according to which yield farming method they would like to use. The vaults are run with smart contracts, which automatically identify and select the best yield farming opportunities, and then invest the crypto accordingly. This means that the smart contract will analyze all the opportunities available to it within that vault, then invest the vault’s assets into that money-making opportunity. Despite the name, the crypto deposited in these vaults can in fact be withdrawn at any time, making it a lucrative option where the user retains control of their assets.
- BIFI crypto: The BIFI coin is the governance token used on the beefy.finance ecosystem. It is the central point that runs the entire system, from running the smart contracts to rewarding users. In addition, the BIFI token is used for governance, thereby ensuring decentralization by putting the decisions on the running of the platform firmly into the hands of the BIFI holders. A small percentage of the profits from the vaults is taken as the platform’s revenue, which is then redistributed to those users who stake BIFI.
Beefy.finance first launched its vaults on BSM in October 2020. (Source: bsc.news)
BIFI Price Analysis
Beefy.finance’s offering is a great one, but also one that in some regards might be quite familiar. This is because it is recognizable in yearn.finance, which is its biggest competitor. BIFI’s rise in value and popularity, however, has been nothing short of impressive during its less than two-year existence. Starting out at around the same time as BIFI, yearn.finance has risen from around $900 in July 2020 to its current value of just over $32,400 — a total of 36 times its initial value. BIFI, meanwhile, although on a lower figure, has risen from a value of around $10 in June of 2020 to the considerably higher sum of around $1,310 — 131 times its initial value. BIFI’s fast service and automated vaults to generate high-yields have of course been instrumental in its rise — as has perhaps its clever farmyard-themed logo and marketing.
Beefy.finance price chart Oct 2020 — December 2021. (Source:.: coingecko.com)
Like most cryptocurrencies, BIFI climbed to unprecedented heights with the v-shaped recovery that followed the 2021 crypto crash, reaching highs of over $3,000. However, again following the trends, BIFI came back down again and stabilized – with the usual fluctuations – at around the $1000 mark. As it has added further vaults and launched on new blockchains, BIFI has seen some gain in its value, such as when it launched on Polygon in May 2021 and gained $50 million in TVL.
BIFI’s limited max supply of only 80,000 tokens will help to keep its value high and with 72,000 tokens currently in circulation, this could also be suggestive of an increase in value quite soon — as investors rush to buy up the last of the supply. It has maintained a general bullish trend since its inception, and with its growing popularity, its continued launching of new vaults, and this last push of the final coins, it may well be that we see BIFI’s value rise again very soon.