Beefy Finance Review 2021: [Best Way to Maximize Your DeFi Gains?]
The decentralized finance industry is growing rapidly. In 2019, the market cap for cryptocurrencies reached $1 trillion. And in 2020, it’s expected to reach $2 trillion. This is a huge opportunity for investors and entrepreneurs alike.
The beefy finance audit is a review that will help you decide if this project is worth your time and money.
Decentralized finance is the hottest new sector for want tobe billionaires, and it’s ready to take your crypto money in exchange for unimaginable profits. Is there a better method for you to maximize your profits even more given that traditional investing instruments such as liquidity pools and market-making programs are becoming more crowded? As a result, we’ve developed agricultural optimizers like the one we’ll discuss in our Beefy Finance review.
With innovative methods to assist automate your large array of assets, these optimizers make the laborious job of investing in DeFi that much simpler and worry-free. With services like Beefy Finance, you can put your already profitable cryptocurrencies to work for you to make them even more profitable. So, what is Beefy Finance, and how do yield farming optimizers work? If you want to understand more, check our Beefy Finance review.
What is Beefy Finance, and how does it work?
Beefy Finance – also known as Beefy.Finance – is a decentralized yield farming optimizer that is completely trustless and permissionless. Built natively on the Binance Smart Chain (BSC), they have a total amount of liquidity and collateral locked inside their protocol of approximately $463 million, making it one of the biggest platforms built on the BSC as of the time of writing this Beefy Finance review. They are a multichain network that connects the blockchains of HuobiEco, Avalanche, Polygon, and Fantom.
Beefy Finance’s aim as a yield farming optimizer is to develop and construct a series of smart contract-based investment strategies that combine different liquidity pools, automated market making (AMM) services, and other yield farming possibilities. These methods would basically identify the ideal location for users to put their money while also allowing their funds and profits to be compounded and reinvested without them having to do it themselves.
What Makes Beefy Finance Special and How Does It Work?
Beefy Finance is able to assist its customers optimize their profits by automating those investments – that is, letting smart contracts handle your earnings and assets for you – since human engagement with the fast-moving world of DeFi may be hazardous. To get the most out of these investments, whether it’s a liquidity pool or yield farms, you need to schedule and arrange your stakes correctly. The Vaults, Beefy Finance’s inaugural investment strategy, became online on October 8th, 2020.
Yearn.Finance is said to have influenced the developers of Beefy Finance. However, Beefy Finance is far from the only yield optimizer operating in the blockchain sector at the moment. So, how does Beefy Finance differ from the competition in terms of programmatically strategizing its pools and farms to maximize the greatest returns for its customers?
Here are a few notable characteristics that Beefy Finance has over its rivals, according to our Beefy Finance review.
1. Multi-Chain Flexible Networking
Many yield optimizers now work on a single chain, usually Ethereum or the Binance Smart Chain, which are the most popular for DeFi-based applications. Others may provide dual-chain compatibility for these two blockchains, as well. Beefy. Finance, on the other hand, can find the greatest and most profitable investments since, as we stated earlier, it operates over five different blockchain networks, giving its customers additional options.
2. Investment Strategies That Are Specialized and One-of-a-Kind
Aside from being able to discover a wide range of investment opportunities throughout a vast multi-chain ecosystem, Beefy Finance also has its own unique and distinct methods that you won’t find anywhere else. There are certain liquidity pool pairings and vaults, for example, that have extremely high returns when compared to their competitors. Beefy’s own native cryptocurrency, BIFI, makes this even more appealing, as we’ll see later.
3. Increased Accountability and Security
Getting people to trust you is just as essential as providing them with a platform that can earn them a lot of money. As a result, at the time of writing this Beefy Finance review, the company employs more than ten smart contract developers who thoroughly test and evaluate each vault and feature.
Not to mention that it is an official partner of the Trust Wallet, which is also Binance’s official wallet software, and that its open-source code is publicly accessible for testing and bug patches.
4. Quick and Low-Cost Investment Strategies
Beefy Finance not only knows how to work, but they also know how to work efficiently. Their yield optimizer can reinvest or compound your assets thousands of times each day, shifting funds quickly to maximize your prospective returns. Furthermore, all compounding costs inside the network and vaults are amortized across all vault members, making Beefy Finance much less expensive to use than some of its competitors.
Overall, the cost for utilizing Beefy Finance’s Vaults is a performance fee by default. Each Vault will have its own charge, which will be deducted from the harvested rewards at a rate of 4.5 percent. This 4.5 percent fee is then divided as follows: 3 percent goes to the reward pool, which is then distributed to all BIFI token holders; 0.5 percent goes to Beefy Finance’s treasury fund; 0.5 percent goes to the strategist who designed the specific Vault; and the final 0.5 percent goes to the person who calls the harvest function.
What Can You Do to Supplement Your Income with Beefy Finance?
Now that we know more about Beefy Finance and what makes them different from other yield optimizers, let’s have a look at what they have to offer their customers and what you can accomplish with them. The Beefy Finance dApp provides access to their four major products.
Beefy Finance operates in a very straightforward manner. The Vaults, the company’s primary product, each have their own strategy, which entails optimally optimizing – or farming – for returns depending on your assets. This may be as simple as farming the rewards from your staked assets and reinvesting them back into a liquidity pool, or as complex as compounding the amount of interest earned to effectively increase the number of assets you have staked and therefore raise your potential returns.
To attempt to harvest profits from those liquidity pools, money markets, and yield farms, this whole process is automated and performed many times a day for each Vault. This procedure would have been done manually if yield farming optimizers hadn’t been invented. However, this may lead to inefficiencies such as having to spend a lot of time, paying a lot of money in transaction costs, not being able to maintain collateral to debt ratios, and not being able to rapidly optimize and reinvest those profits.
The Vaults are the first thing you’ll notice on Beefy Finance’s dApp, where you can view their individual APY and TVL values. However, all Vaults have a fee of between 0.05 percent and 0.1 percent when depositing or withdrawing. Some Vaults, such as the ‘BUSD/USDT/USDC/DAI,’ have over $84 million in liquidity and are still paying out 30 percent or more APY. Others, such as the ‘SDUMP-BUSD LP,’ promise profits of 95 billion percent or more. Keep in mind that high rewards usually imply great risk.
The ability of such Vaults to function is based on what are known as Strategies. Strategies are immutable, hardcoded smart contracts that instruct you what assets to farm and where to sell the assets you’ve farmed. This is then multiplied and reinvested using automation. Regular users may create their own Strategies by contacting the Beefy Finance Discord channel beforehand. Users that create the techniques that vaults depend on may earn a part of the fees in this way.
3. Barn Of Faith
Beefy Finance is interested in investing in and incubating additional initiatives in addition to its own dApp. Beefy Finance, as a partner of Binance’s Trust Wallet, enables users to invest up to $1,000 in TWT or BIFI tokens in the Barn Of Trust – or Barn Trusts – to help support third-party dApps. In exchange, those users will get a proportionate return in the project’s tokens, with a total of $25,000 in dApps tokens being given to Beefy users.
4. Start-up pool
You may see a “BOOST” sign next to certain Vaults as part of Beefy’s dedication to assisting other projects. These are protocols that have partnered with Beefy Finance in order to list and advertise their own pools, tokens, and farms. As Beefy Finance remains one of the most popular yield optimizers on the BSC, these Launchpool vaults may help new projects acquire more credibility, while users can benefit from the excellent yields that these Vaults provide.
What Is The Native Cryptocurrency Token of Beefy Finance?
The Beefy Finance network’s primary cryptocurrency is BIFI, which is designed as a BSC-native BEP-20 governance token. As a result, users may use their BIFI tokens to submit ideas and vote on network-wide changes in governance pools or the BIFI MAX Vault. Aside from decision-making, we mentioned in our Beefy Finance review that BIFI token holders may receive a share of the performance fees paid out for the Vaults collectively.
With a supply limit of just 80,000 BFI, the tokenomics of Beefy’s BIFI tokens are intended to be deflationary. The community received 72,000 BIFI tokens, with the remaining 8,000 BIFI tokens reserved for the founding team. BIFI tokens have risen in value since its creation, reaching $724.36 at the time of this Beefy Finance analysis. BIFI is the 474th most valuable cryptocurrency, with a market value of $52,154,026, according to CoinMarketCap.
Conclusion of the A hefty financial assessment
General, our Beefy Finance review was extremely complimentary of its network and the overall variety of the Vaults it has to offer, as well as the fascinating earnings for its users and the plethora of little details that properly complete the Beefy Finance experience. The only complaint we have, and it’s not Beefy’s fault, is if the BSC as a whole has weaknesses in light of recent big flash loan exploits against PancakeBunny, a fellow yield optimizer.
Otherwise, there’s a lot you can do with Beefy Finance if you want a simple method to automate and optimize your DeFi returns as much as possible, without having to worry about high fees or wasting time managing your cryptos. It’s also a nice benefit to be able to switch between blockchains with a single click. Our Beefy Finance review comes to the conclusion that this may be one of the finest DeFi yield optimizers available.
Beefy Finance Review
Values of the Project
Model of Tokenomics
Sustainability in the Long Run
Users may automate their DeFi investments and asset management, such as compounding and reinvesting returns, in a matter of minutes.
Built as a multi-chain network that can transition between DeFi projects — liquidity pools, AMMs, farms, and so on – on up to five distinct chains in real time.
Offers a wide range of Vaults with attractive payouts, as well as specifically created Vaults that are only available on Beefy.
A collaboration with Binance’s Trust Wallet, as well as an active team of developers, has added credibility and trustworthiness.
Beefy has cheaper costs than other competing platforms, as well as lower total network fees, since it is based on the more scalable BSC blockchain.
Through Launchpool and Barn Of Trust, users may simply invest in other projects outside of Beefy.
Concerns about security have been raised in the wake of many significant vulnerabilities, such as flash loan attacks against BSC-based protocols.
Beefy Finance is a cryptocurrency trading platform that offers users the opportunity to trade in over 100 different cryptocurrencies. The best defi coins are those that offer the most gains to their traders.
Frequently Asked Questions
Is beefy finance a good investment?
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How does beefy finance make money?
Beefy finance makes money by making their users more productive.
How do beefy finance vaults work?
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