Network - Binanace Smartchain
Date Launched - 30th June 2021
What is Beefy Finance?
Beefy.Finance (BIFI), launched in 2020, is a yield optimization tool on the Binance Smart Chain that helps maximize the return from yield farming. Yield farming is the practice of staking or lending your crypto assets to a smart contract-based liquidity pool in order to generate returns or rewards.
The lender is known as the liquidity provider and the fund where the money is kept is known as the liquidity pool. Yield farming protocols incentivize the liquidity providers (LPs) to lock up their crypto assets in the liquidity pool.
These incentives can take the form of percentages of transaction fees, governance tokens, or interest from the lenders. Yield optimization is the usage of data analysis tools to maximize the performance of yield farming projects.
Through a set of investment strategies secured and enforced by smart contracts, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.
The main product offered by Beefy Finance are the 'Vaults' in which you stake your crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite the name 'Vault' suggests, your funds are never locked in any vault on Beefy Finance: you can always withdraw at any moment in time.
How does Beefy Finance Work?
$BIFI can currently be found in several decentralized exchanges including 1inch and PancakeSwap. To buy $BIFI you need to buy the native coin of the network that Beefy is on, and then you need to head over to an exchange where you can swap the native coin for BIFI which can then be staked and yielded etc.