What is Beefy Finance?

Updated on 12 September, 2022 11:04 AM
1 min read

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    Beefy Finance is a multi-chain decentralised platform that works towards yield optimization. It allows users to earn compound interest on their cryptocurrency assets. Simply told, Beefy Finance is an autocompounder who reinvests the trader’s yield profits in order to boost their gains.

    Introduction to Beefy Finance

    The Beefy Finance ecosystem is currently worth more than $300 million overall. On the Binance Smart Chain, these funds are present.

    Through a number of investing techniques that are protected and enforced by smart contracts, Beefy Finance optimises the user's returns. This covers the potential for yield farming within the DeFi ecosystem, such as automated market-making (AMM), liquidity pools (LPs), and many others.

    In addition to being a DeFi protocol, Beefy Finance has other distinctive qualities that make it different from other yield optimizers in the ecosystem. The platform aspires to use these qualities to set itself apart from its many rivals.

    Origin of Beefy Finance

    Beefy Finance started in September 2020. Although its creators and crew are unknown. Beefy Finance has opted to maintain their anonymity. Beefy Finance first collaborated with Binance. On the Binance Smart Chain network, it first appeared. The website claims that this will not stop it from adopting other networks that aid in its expansion.

    How does Beefy Finance work?

    Boosting yield is what Beefy Finance does. Liquidity pools are used in yield farming to lock tokens inside a farm pool. On the other hand, yield optimizers employ a variety of algorithms to determine which yield farm reward initiatives offer the best value. Essentially an automated service, the yield optimizer seeks out the highest return on cryptocurrency investments. It helps to increase yield.


    How to Get Started with Beefy Finance?

    Start by going to the website of Beefy Finance. Once there, select "Launch App" from the menu. This will take you to the website's app area. You must then prepare your cryptocurrency account. Beefy Finance sets itself apart from other DeFi platforms by supporting a variety of blockchains. Continue by selecting the wallet you want to connect.

    Do not worry as your assets should be protected because the platform is secure. When users are joined, the vaults and liquidity pools will be visible. The website displays both all of the pools that are currently open as well as those that they have access to and each pool displays the participating crypto coin pair.

    A lot of crucial details are provided by every available vault or pool. An APY, among other things, is provided by Beefy Finance, and based on these, you can filter your findings. Click the "Add Liquidity" button after selecting the pool you want to join. You can buy the token if you don't already have one. Use the "Buy Token" option for this.

    It works similarly to depositing crypto into Beefy Finance Vaults. Select the token you want to deposit first and after that simply select the “Deposit” option.

    Tokenomics of the Beefy Finance Token - $BIFI

    The platform's native coin, $BIFI, is used on Beefy Finance. The token is used in the governance process. This is a component of Beefy's efforts to develop a decentralised cryptocurrency ecosystem.

    There are 1 billion BiFi tokens available. 100 million BiFi tokens, or one-tenth of the total supply, were available at launch. It is divided into two ways. First, there are 50 million BiFi tokens that can be mined in BFC/ETH liquidity pools or staked in BiFi. 50 million BiFi tokens are additionally initially accessible on Uniswap.

    Owners of the BiFi token have the ability to vote on changes to the platform. But BIFI tokens can be used to gain access to a range of financial services on BiFi, such as trading, insurance, investing, and insurance.

    Finally, BiFi will guarantee future fee payment for multichain services. On top of the multichain middleware platform Bifrost, BiFi was developed. By doing this, Beefy Finance wants to make Ethereum's competition.

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