In that case, 70% of the yields are returned into the pool of deposits. There are more than 100 from which it seeks yields. It’s also expensive because it is subject to high gas fees. Harvest Finance automates the process of yield farming on what it refers to as farms.
Harvest finance total supply manual#
Manual yield farming is tedious because you have to identify the best place to stake your crypto. Fortunately, advancements in technology have made the process of planting and harvesting crops much more efficient and profitable. I’m not talking about planting actual crops, but rather yield farming. Investors who put their capital behind Harvest Finance are doing so partially because it automates yield farming. So, what is the actual benefit of Harvest Finance other than potential rapid appreciation? Automation is Key based investors cannot use Harvest’s yield farming platform directly and must buy FARM-USD tokens through an exchange like Coinbase (NASDAQ: COIN).Īnd there is definitely certainly some regulatory uncertainty regarding yield farming as the Securities and Exchange Commission (SEC) has started to turn its attention to the relatively new practice.
Currently, per Harvest Finance’s website, “due to regulatory uncertainty, Harvest is not available to people or companies who are residents in the United States.” There’s also a very large legal asterisk here regarding yield farming and Harvest Finance. And given that FARM-USD spiked so appreciably recently, people will be interested. Therefore, it’s very clear that quick returns are possible with this strategy.
But this potential return comes at high risk, with the protocols and coins earned subject to extreme volatility and rug pulls wherein developers abandon a project and make off with investors’ funds. Since yield farming began in 2020, yield farmers have earned returns in the form of annual percentage yields (APY) that can reach triple digits. Locking up crypto is referred to as “staking.” Here’s the truly interesting thing about staking: Just like you lend money to a bank in order for a nominal return, the same can be done with crypto. In order to earn yields on your crypto you have to do exactly what you would with your money: Lock it up and entrust it to others. If that sounds a bit like lending money to make money, it should.
When farmers deposit, Harvest automatically farms the highest yields with these deposits using the latest farming techniques.” Per its website, “Harvest is an international cooperative of humble farmers pooling resources together in order to earn decentralized finance (DeFi) yields.
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