Beefy.Finance is a yield optimizer operating on Binance Smart Chain. In return for a small fee, Beefy.Finance automates several investment strategies utilizing liquidity pools. This provides a huge advantage over attempting to do this manually yourself.
The project consists of an anonymous team, directly inspired by the yield optimization projects that had been developed on the Ethereum network. Our governance token distribution contracts went live on September 22, 2020, and our first set of vaults were opened on October 8, 2020.
The project offers complex strategies that are simple and intuitive for any investor to take part in through the offerings on the platform. With the inherent advantage of speed with Binance Smart Chain, the team is exploring new methods of optimizing automation to secure the largest yields available. Binance Smart Chain offers some clear advantages in its speed and fees but still has its unique problems and challenges.
As a decentralized project with a deeply ingrained crypto-mindset, there is a robust governance system in place to put the decision-making power in the hands of those invested in the project. This takes place through governance mechanisms related to Beefy’s native governance token $BIFI.
Our first auditor was defiyield, which audited BIFI token, the RewardPool and all the timelocks. Beefy now is also audited by Certik, which guarantees the robustness of our smart contracts and the safety of funds invested through Beefy. Certik has already provided audits for such projects as Ocean Protocol, NEO, Ontology, and Waves.
Certik has audited some of the most complex and reusable investment strategies used within the platform. This ensures the safety and sturdiness of important platform aspects that the majority of our users interact with.
The first system audited by Certik was the YieldBalancer. This is behind the new versions of our SmartCake strategy, the SmartDrugs strategy, and other strategies in the future that manage allocations in multiple farms concurrently. All Beefy audits can be found here.
A yield optimizer is an automated service that seeks to gain the maximum possible return on crypto-investments made through DeFi platforms. They work much more efficiently than attempting to maximize yield through manual means. Each yield optimizer has its own unique strategy for farming, which normally involves the reinvestment of crypto assets staked in liquidity pools. At the most simple level, it farms the rewards given from staked assets and reinvests them back into the liquidity pool. This compounds the amount of interest received and increases the amount staked that the yield is based on. A yield optimizer can repeat this up to process up to thousands of times a day. This fairly simple method is the reason behind the large APYs seen within yield optimization, otherwise known as liquidity farming. Compounding fees are amortized among all vault participants, making it cheaper for the user.
There are a few key reasons as to why Beefy.Finance differs from a large number of yield optimizers out there today.
Beefy has more than 10 smart contract developers who carefully test and review our vaults, investment strategies, and smart contracts before releasing them to the public.
Given enough eyeballs, all bugs are shallow. The more widely available the source code is for public testing, scrutiny, and experimentation, the more rapidly all forms of bugs will be discovered. This is a key Beefy principle.
Beefy offers unique strategies that other yield optimizers simply do not have. This includes liquidity pool pairs that you can find only on the Beefy platform.
The mooVaults for yield optimization boast large APYs that outperform many of our yield farming competitors.
Yield optimization was originally commonplace on the Ethereum network. Huge gas fees however have made it impractical to use and costly. Beefy.Finance works with Binance Smart Chain to overcome the weaknesses present with Ethereum.
Beefy.Finance is a supported partner of Trust Wallet, Binance’s official decentralized wallet. This provides the project with credibility and improves overall trust.
APR (Annual Percentage Rate) is the yearly interest, minus fees. This does not include compounding effects that occur from reinvesting profits. If you were to invest $100 with 100% APR, you would make $100 in profit.
If you however reinvest your profits regularly, you will compound your interest. This calculated over a year gives you your APY (Annual Percentage Yield). The more often you compound your interest, the greater the difference between APR and APY.
APY is the annual percentage yield offered from a particular investment. This takes into account compound interest, giving you an accurate idea of your returns compared to simple interest.
Large APYs in the percentage thousands are possible with investments that provide daily yields of 1-2%. Due to your liquidity pool rewards being constantly farmed and reinvested, the interest compounds on larger and larger amounts.
You can use a DeFi dashboard that will be able to calculate exactly how much profit you have made on your investments. Yieldwatch will connect to your wallet and give you an accurate picture of your initial investment and current earnings.