Introduction to Beefy
a Decentralized, Multichain Yield Optimizer
Beefy is a Decentralized Finance (DeFi) Yield Optimizer project, that allows its users to make more crypto with crypto. DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middlemen. Beefy caters its users by making it easy to get a yield on their crypto capital in a safe and decentralized manner. Through a set of smart contracts and several investment strategies, Beefy automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem. This provides a huge advantage over attempting to do this manually yourself. Beef up those yields!
The project consists of an anonymous team, directly inspired by the yield optimization projects that had been developed on the Ethereum network. As a team that has been part of the crypto world for many years, we are strong proponents of “Don't Trust, Verify”. This is why data such as our governance token distribution contracts are open for anyone to verify that everything will work as intended. We are committed to this idea of radical transparency, which is especially important in nascent ecosystems like Decentralized Finance.
Beefy offers complex strategies that are simple and intuitive for any investor to take part in through the Vault offerings on the platform. The first set of vaults went live on October 8, 2020 on the Binance Smart Chain (BSC), making Beefy the first Yield Optimizer on BSC. Beefy later expanded to many more blockchains (currently 15+ and counting), establishing itself as THE Multichain Yield Optimizer.
For all the vaults deployed on every blockchain, Beefy has its multiutility token BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake BIFI. As a decentralized project with a deeply ingrained crypto-mindset, there is also a robust governance system in place to put the decision-making power in the hands of those invested in the project by governance mechanisms build around BIFI.
There are a few key reasons as to why Beefy differs from a large number of Yield Optimizers out there today.
- 1.Safety is Beefy's number one priority. Before a Vault is released, the code has to pass a stringent set of SAFU rules.
- 2.Beefy largely distributes platform revenue back to those who stake BIFI. With staked BIFI, you essentially hold a revenue share in Beefy.
- 3.Beefy has talented, industry-leading smart contract developers who carefully test and review the vaults, investment strategies, new platforms and smart contracts before releasing them to the public. Beefy is also actively encouraging developers to contribute and engage to make Beefy an even better product.
- 4.Beefy is flexible and operates on various blockchains.
- 5.Beefy offers unique strategies that other yield optimizers simply do not have. This includes Vaults that you can find only on the Beefy platform.
- 6.Beefy has many recognized partners. This provides the project with credibility and improves overall trust.
Yield optimizers on cheap and fast blockchains present a different set of problems, challenges and opportunities. While on Ethereum, where gas fees are high, it makes sense to focus on gas savings, and pooling funds to deploy strategies. On chains where the fees are far smaller, the focus moves to optimizing automation to secure the greatest yields with less concern for the amount of interactions necessary to constantly improve a moving APY. The doors open up to more complex strategies and frequent rebalances.
With this automatization, we can provide a simple way for investors to interact with pools, projects, and other yield opportunities without having to constantly make decisions and take manual actions. We see this as a necessary step to leveling the playing field, allowing small investors to have access to the same opportunities that so far only whales and full-time yield-farmers on Ethereum have had access to.
Our long term goal is to help projects in DeFi grow together, providing help with auditing, creating hackathons for interesting strategies to add to the platform, etc. All of this will be coordinated decentralized by the community and the holders of the governance token BIFI.