Harvest Finance

What is Harvest Finance?

Harvest Finance, symbolized by the FARM token, functions as a decentralized finance (DeFi) protocol designed to offer users automated exposure to potential returns within specific DeFi protocols. Its objective is to enhance the accessibility of yield farming by automating the procedure and maximizing potential returns through cutting-edge farming techniques. FARM serves as the governance token for Harvest Finance, allowing holders to participate in voting on proposals related to the FARM operational treasury and granting them a 5% fee from Harvest operations.

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Recent Video Interview

Main points of the interview:

• Harvest Finance simplifies yield farming by aggregating opportunities across various DeFi platforms.
• The importance of choosing reliable projects amidst the "Wild West" of DeFi.
• Harvest Finance's approach to minimizing risks and maximizing yields for users.
• The expansion of Harvest Finance into Binance Smart Chain and other protocols for broader profitability.

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Automated Compounding Mechanisms

One of Harvest's key features is the automated compounding of any earned rewards. Periodically, the platform sells earned rewards through automated compounding mechanisms, enhancing the user's deposited amount. This process aims to increase the user's earning power for future rewards, transitioning from Annual Percentage Rate (APR) to Annual Percentage Yield (APY).

Protocol Earnings Pool and iFARM:

The Protocol Earnings pool, a modified SNX-style staking pool, distributes FARM to participants over a one-day duration, with rewards resetting upon each new addition. iFARM, an interest-bearing token, utilizes the same vault architecture as other Harvest vaults, offering advantages such as lower gas costs and transferability between addresses. Composability of iFARM enables users to explore external opportunities, enhancing flexibility in utilizing compounding shares.

The FARM Token

The emission of the FARM token occurs weekly over a four-year period from its launch. The distribution is as follows:

70% of FARM tokens serve as rewards for liquidity providers, decentralized market liquidity provisioning, market-making services, and the creation and maintenance of deployed strategies, including associated payments. Unused tokens are held in a Strategic Reserve wallet for the same purposes. Weekly emission details are regularly disclosed on the Medium blog or official Twitter account.

10% of FARM tokens are allocated to the Operational Treasury, covering core team salaries, community contributor rewards, and operational expenses, including any legal fees supporting Harvest operations and contributors.

20% of FARM tokens flow to the original founding Development Team.

The community contributor team actively monitors the weekly distribution of incentives, aiming to maximize benefits for liquidity providers and FARM token holders.

Harvest Finance Team Background

Launched in 2020, Harvest Finance emerged during a period when yield farming gained significant traction in the cryptocurrency space. Developed by an anonymous team, the protocol was created to enable users to automatically engage in asset farming, capitalizing on the potential for high returns from cutting-edge DeFi protocols. Since its inception, Harvest Finance has undergone continuous development, expanding its repertoire of farming strategies and consistently adapting to the dynamic landscape of decentralized finance.

Harvest Finance Project Development

Harvest 3 has launched with a revamped DeFi yield farming platform, offering users a simplified experience. Users can start with any token, and the platform handles the complexities of yield farming. With a serene and uncluttered interface, Harvest 3 allows users to make deposits using any wallet token in collaboration with Wido Labs. The process eliminates the need for manual acquisition of complex LP tokens. Each farming opportunity has a dedicated page with interactive charts and statistics for easy monitoring of APY, TVL, and deposit performance. The Portfolio feature consolidates all farming positions in USD, and the Profit Sharing page is revamped for easy tracking of $iFARM earnings, keeping users updated on both FARM and USD earnings.

Harvest Finance Price Analysis

As of November 24 2024 Harvest Finance has a marketcap of $36M. This is {{percentagefromath}} from its all time high of $628.46. In terms of its tokenomics, there's a total supply of 690K with 97% currently outstanding. Keep in mind Harvest Finance has a fully diluted value of $37M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.