With numerous De-Fi protocols available on the Binance Smart Chain for optimizing yield, Beefy.finance is the one that tops the list.
To put it simply, Beefy Finance is a cross-chain yield farming aggregator on the Binance Smart Chain, HECO, and Avalanche blockchain that helps investors to grow their crops automatically through its automated vault strategies.
When I say automated vault, I mean completely by itself, without any human interference.
You can easily navigate through their website to select your desired network. As of March 25, 2021, there is a total value of over $313M locked into the Beefy Ecosystem on the Binance Smart Chain.
Apart from the main features that every DeFi protocol has, Beefy Finance has some other attractive features that make it unique from other yield optimizers in the ecosystem. Some of them include Liquidity pool pairs and cross-chain functioning.
Does it sound complicated?
Well, no doubt, the complete DeFi world is complex but don’t worry you will not find it difficult anymore.
But before diving down, I request all the newbies here, please refer to our article on yield farming for a better understanding of the protocol.
So without further delay, let’s deep dive into the Beefy Finance pool to discover its matchless offerings to the DeFi users.
What is Beefy Finance and its Products?
Designed by a team of anonymous developers, Beefy Finance is a De-Fi protocol that provides various yield farming opportunities to its users through the underlying smart contracts to maximize the yield.
Users can deposit their assets through any of the supported wallets on the platform and can immediately start earning interest on them. Earned yield will be automatically added to the vault once/twice per day(depending on the vault) to earn more yield, saving user efforts, time, and the gas fee per transaction.
To maximize the crops, Beefy offers two products to its protocol users:
- Vaults – Making the core of Beefy space, Vaults allows users to lock their assets into an underneath smart contract to earn yield on it. Every vault possesses a specific strategy that is defined in the code of underlying smart contract code to grow more and more yield. These vaults are designed in a way to automatically reinvest your earnings to make more money.
There are a total of 3 types of Vaults available on the Beefy platform. These are:
- Single-Asset Vaults
- Liquidity pools
- Stables
You can easily view the vaults of a particular type by selecting a category from the drop menu on their website. Each vault represents either a pair of tokens invested in Liquidity pools or a single token funded in lending platforms, all at the Binance Smart Chain only.
The APY, total value locked in each vault, and the daily % gain is mentioned against each vault to make it simpler for the users to select the vault with higher returns.
Below each vault, you can find the name of the platform that is used to invest the token to farm its yield. Beefy Finance also allows its users to request a new vault through its Discord #whiteboard channel.
Some of the Beefy vaults that have the highest APY are BLZD-BUSD LP, BLZD-BNB LP, BLZD, SOUP-BNB LP, SOUPS-BNB LP, PMP-BNB LP, etc…
- Barn of Trust – The concept of Trust Barn was developed in association with Trust Wallet. Users can stake a maximum of 1000 $TWT across multiple wallets. To earn rewards across various DeFi protocols users can stake their $TWT or $BIFI in the vaults. You can stake your assets by clicking on the BARN icon at the top of the website. Connect your preferred wallet to continue to Barn and choose the vault you want to stake in.
Each vault is clearly labeled with the token that investors will receive as rewards. Also, by clicking on the specific wallet, users can view the TVL, pool%, and other statistics related to that vault.
Currently, The Trust Barn is closed.
Depositing, Staking, and Harvesting on Beefy
Since now, you have a fair understanding of Beefy vaults and their strategies. Let us see how we can deposit the assets in the vaults to grow yield.
To start with, you must have a supported wallet that is ready-to-use like Metamask, Trust Wallet, Binance Smart Chain Wallet, or Safepal.
Once you have your wallet in place with some BNB in it to pay the gas fee, you can easily start investing in Beefy vaults.
- Go to https://app.beefy.finance/
- Smash the connect wallet button to connect the wallet of your choice.
- A pop appears that shows the supported wallets. Choose your favorite one by clicking on it.
- Allow your wallet to connect with Beefy, in my case Metamask.
- You will see that your wallet is successfully connected to Beefy. Now you can easily move your funds from your wallet to Beefy vaults.
- Pick your favorite vault by selecting a category from the drop-down menu listed on the website or you can also directly scroll down to search for the vault of your choice.
- Also, by clicking on the stats at the top middle of the website, you can view the current statistics related to the Beefy protocol that will give you an idea about its achievement so far.
- In this article, I will show you how to deposit your assets in sBDO-BUSD LP pool. But, to stake your assets in this pool you must have sBDO and BUSD tokens first.
- To obtain these tokens, let’s go to the PancakeSwap exchange.
- I am swapping my BNB against SBDO and BUSD. You can choose any asset that you have to obtain sBDO and BUSD.
- Select BNB in the “from” tab and “sBDO” in the “to” tab.
- Enter the amount of BNB you want to swap and click Swap.
- Confirm the transaction on your wallet by paying a small transaction fee.
- You will see some sBDO tokens are successfully credited to your wallet but you can only be able to see them if you have added sBDO as a custom token into your Metamask account. To learn “how to add custom token”, please refer to our previous tutorial on Metamask.
- Similarly, you can now swap some more BNB to get BUSD. Select the required assets in the “From” and “to” tab.
- Enter the BNB amount and hit Swap.
- Confirm the transaction by paying a little transaction fee.
- You will see that BUSD has been successfully credited to your Metamask wallet account.
- Now, since you have sBDO and BUSD, you need LP tokens that can be obtained by providing liquidity to the sBDO-BUSD pool.
- Go again to the Pancake Swap → Liquidity → click Add liquidity.
- Select both the assets as 1 and 2. Enter the amount that you want to stake in the liquidity pool to receive corresponding LP tokens.
- Ensure to have sufficient balance to provide liquidity. Click to approve both of the asset transactions one by one by paying the gas fee for each asset.
- Click on supply to provide liquidity to the pool by again paying a small gas fee.
- Now, you can deposit the received sBDO-BUSD LP tokens on the Beefy platform to earn more yield.
- Note that this vault has an APY of 4.02% with a total value locked of $546.16K.
- To deposit the LP tokens into the vault, first Approve the assets by dragging and drop its limit to the maximum or by selecting your preferred limit and hitting approve. Confirm the transaction in Metamask by paying the gas fee.
- Once your assets are approved, they are ready to deposit into the sBDO-BUSD vault.
- Deposit all the LP tokens into its corresponding vault by clicking Deposit all and confirming the transaction in Metamask.
- Once the transaction is confirmed you will see that your assets are successfully deposited into the vault and will grow daily at the rate of daily% mentioned against the vault. The earnings from the vault will be reinvested automatically to earn more yield.
- Please note that high APY means high risk thus if you are new to the yield farming world, start with the vault that has low APY as compared to other vaults. Stable assets vaults are mostly secure and offer low APY because of their value pegged with Dollar in the ratio of 1:1.
- You can directly deposit single assets into its corresponding single assets vaults to obtain a high yield. In case, you don’t have the underlying token of that vault you can easily get it by using any of the decentralized exchanges like PancakeSwap and BakerySwap.
- You can withdraw your assets anytime from the vault by clicking first on the “withdraw button” followed by confirming the transaction on Metamask and then hitting on the “Withdraw all button”. The function “Withdraw all” also requires some gas fee to be paid to make the transaction successful.
This is all about depositing and harvesting the assets from the vault.
Now, you can also stake your assets into the Beefy governance pool and BIFI max vault to earn even more yield.
Tokenomics
BIFI is the native governance token of Beefy Finance and has a total supply of 80,000 tokens. Out of the total supply, 72,000 is supplied to the community and 8,000 were kept locked for the team to ensure rapid development and innovation in the protocol.
BIFI token holders have the advantage of taking part in the decision-making process of the protocol as a part of the governance system. Users can stake their BIFI tokens in the governance pool to earn wBNB as a reward. BIFI holders will also receive a share of vault performance fees that the Beefy team has earned from the yield farming vault users.
Users can also earn more BIFI by staking their available BIFI in BIFI max vault, which pays BIFI as a reward for staking their assets.
BIFI is totally pre-minted and has a fixed supply thus users cannot farm this token. It can only be purchased through several decentralized exchanges including PancakeSwap and BakerySwap.
Fees Associated with Beefy Finance
Vaults have a withdrawal fee of 0.1% of the withdrawal amount. There is also a performance fee of 4.0% on the earned yield to promote their governance platform.
A percentage of this fee will be given to BIFI token holders when they stake their BIFI into the governance pool.
A call fee of 0.5% is also taken whenever a user calls the Harvest function.
Risks Associated with Beefy Finance
Beefy was first audited by Defiyield and then Certik but that doesn’t mean they are completely safe. Underneath smart contracts are always prone to risks from attackers thus it becomes necessary to analyze all the facts and figures before taking any step.
De-Fi protocols truly satisfy the quote “With great power comes great responsibility”. You can relate this famous quote here with “Big profit comes with the big risks involved”. Thus, do your own homework before making any investment in any of the De-Fi protocol.
Note: Our articles don’t constitute any investment or trading advice. They are solely written for the purpose of providing information and creating awareness about recent trends around blockchain technology. We highly recommend you to carefully understand and analyze the underneath risks before trying out your luck into any of the DeFi protocols.
FAQs
When I will get the mooTokens?
You will only receive mooTokens if you deposit your assets into the mooFryWBNBv2 vault. The share of mooTokens will increase with your earnings in the mooFryWBNBv2 vault.
Before You Go…
No doubt, Beefy Finance offers a wide range of yield farming opportunities to De-Fi users. Its cross-chain compatibility makes it more futuristic and unique from the other protocols in the ecosystem.
But, De-Fi is very unpredictable, however, the current statistics are pointing towards a bright future of the protocol but no one has the power to predict the future that time has.