Harvest Finance 2021 Review

Harvest Finance is a protocol that’s designed to make yield farming more profitable. It does this by automatically searching a multitude of Decentralized Finance (DeFi) protocols to single out those with the most advantage for yield farmers. The Harvest Finance protocol is governed with a token named FARM. FARM is a cashflow token for Harvest, one of the largest autonomous hedge funds.

Possession of this token will allow users to vote on proposals for the FARM operational treasury and also qualify them to earn a 5% fee from the operations of Harvest Finance.

Key Points

  • Harvest Finance helps users to enjoy high profits from yield farming.
  • The protocol was designed to enable newbies to participate in DeFi without complications.
  • With minimal effort, users can potentially earn passive income through the protocol.
  • Users will receive 5% of the returns obtained from Harvest Finance’s operations.

Why Harvest Finance Was Launched

Harvest was created mainly for convenience. A lot of users can hardly keep up with DeFi, and as a result, huge profits tend to elude them. With Harvest, users now have a credible means of farming the latest projects without neglecting their jobs. The protocol is not manual but automated and users will also enjoy cheaper gas prices.

More about Harvest Finance

As a DeFi protocol, Harvest Finance enables users to be at the receiving end of their yield farming without monitoring the market round the clock. The job of Harvest Finance is to take the deposits of users and automatically channel them to the best yielding platforms in the DeFi sector.

The primary purpose of Harvest Finance is to optimize yield through the latest farming techniques and make it easier for users to increase their annual percentage yields (APYs).

All activities on the Harvest platform are governed by a token called FARM, with which holders can vote on the functionality of the FARM treasury, as well as on community proposals. As a reward, they are given as much as 5% FARM of the proceeds from Harvest operations.

This project is perfectly suited for newbies in the crypto space, who have little or no experience on how to track DeFi protocols. Harvest Finance offers them convenience and fast access to protocols with the highest potential yields and lowest gas costs.

FARM Token Economics

  • Farm holders receive cash flows from revenues on assets under management (AUM), currently set to 30% profit sharing
  • Circulating supply at launch: 0
  • FARM has a current circulating supply of 482,981.594
  • FARM has a total supply over 4 years of 690,420
  • Harvest was completely bootstrapped, with no VCs and no premine
  • For detailed mechanics of FARM and the profit share pool, you can read more here

Assets Automatically Farmed By The Harvest Algorithm 

fDAI, fUSDC, fWBTC are the yield-bearing versions of these assets, which are being automatically farmed by the harvest algorithm. These assets are automatically appreciating, and you can redeem them at any time for DAI, USDC, wBTC.

Smart Contracts & Audits 

  • You can find the Harvest smart contracts here.
  • The project’s audit reports are here.
  • Haechi, Peckshield and CertiK worked on the project’s audits and you can find the reports here.

Project Supporters

Not much has been disclosed with regards to the developers of Harvest Finance. The only inkling provided about the brains behind the project was sourced from Harvest Finance’s GitHub page, and recognition was given to Andre Cronje for his contribution. Cronje is one of the top Yearn Finance developers, as well as a popular name in the DeFi community. Notwithstanding, the audit carried out by Haechi Audit and Peckshield on Harvest Finance has to a large extent given the project credibility.

How Safe Is Harvest Finance?

Harvest Finance built its smart contracts from scratch with lots of audited components to ensure top-notch security for users. An audit of the smart contracts was conducted by Haechi and Peckshield to prove that the platform is trustworthy and accountable. Harvest underwent 3 full Audits and 2 initial security reviews, which is quite rare for projects of this nature.

Harvest also has a Discord page that is well put together. On the page, you’ll find a comprehensive FAQ, frequent announcements/updates, and links to more resources.

From all that’s been provided, users will find it easy to ask questions, get the latest updates, and monitor progress. This clearly shows that Harvest Finance can be trusted and is here to stay.

How Does Harvest Finance Work?

Harvest Finance supports a wide range of cryptocurrencies, which can be deposited and put to work in high-yield DeFi pools. Some of the supported assets include WBTC, USDC, DAI, and more. Once these tokens are deposited, their owners will be given f-Asset in return (fWBTC, fUSDC, fDAI).

Harvest Finance favors first-time crypto farmers the most because they are exempted from transferring assets between DeFi protocols independently or calculating transaction fees. All these are done on their behalf by Harvest Finance through audited smart contracts and users are saved the trouble of carrying out the tasks manually.

Furthermore, users are allowed to use any of Harvest’s supported cryptocurrencies like REN, Sushi, and Compound to stake their assets on various farms.

Conclusion

To some, Harvest Finance might appear too good to be true. But upon a closer look, it will become evident that this DeFi wonder is here to stay and may even help farmers, especially first-timers, to make profit.

With Harvest Finance, you don’t have to do much work. The protocol has offered to do the heavy lifting in yield farming for its users and also provides impregnable security for their deposits.

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