General

Is Beefy audited?

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.

All Beefy audits can be found here.

What is a yield optimizer?

A yield optimizer is an automated service that seeks to gain the maximum possible return on crypto-investments, much more efficiently than attempting to maximize yield through manual means.

Each vault 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 principle reason behind the large APYs found on Beefy. Compounding fees are amortized among all vault participants, making it cheaper for the user.

What’s the difference between APR and APY?

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 in a year time.

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.

How does APY work?

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 of thousands are possible with investments that provide daily yields of 1% or more. Due to your liquidity pool rewards being constantly farmed and reinvested, the interest compounds on larger and larger amounts.

What do Vault Daily and Trading Daily mean?

Trading Daily means how much your liquidity tokens will increase in value. Liquidity pools share trading fees amongst all liquidity providers, as introduced by the Uniswap liqudity model. Trading Daily is affected by trading volume and the percentage of swap fees allocated to liquidity providers.

Vault Daily means how much your token will increase in number. Due to the vault constantly farming rewards, and reinvesting that, your deposited token amount will increase. Vault Daily is affected by the yield farm rewards (i.e. additional incentives besides trading fees), such as CAKE on Pancakeswap.

How can I find out how much earnings I have accumulated?

You can use a DeFi dashboard that will be able to calculate exactly how much profit you have made on your investments. External tools such as Yieldwatch for BSC or PolygonDex for Polygon will connect to your wallet and give you an accurate picture of your initial investment and current earnings.