Beefy Finance
Beefy Finance
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Certik Fairyproof
Certik Fairyproof
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Last updated: Aug 14, 2023
Beefy Finance is a decentralized, multi-chain yield optimizer that allows users to earn compound interest on their crypto-assets. It offers a set of investment strategies to automatically maximize rewards from Liquidity Pools, Automated Market Makers (AMMs), and yield farming opportunities. Thus, Beefy acts as a decentralized bank that stores its users' cryptocurrency funds in vaults, automatically distributing them among profitable yield farming projects with the highest rewards.
Beefy first went live on Binance Smart Chain (BSC) on October 8, 2020 and later expanded to many more blockchains (more than ten as of this writing).
Beefy Vaults are the main product of Beefy Finance. These investment tools can automatically harvest, sell, invest, and reinvest locked assets to achieve compound interest and high yields. Typically, profits are automatically reinvested (compounded) several times a day.
There are two types of vaults on Beefy: Money Market vaults and Native Token Farming vaults. Money market vaults utilize different lending platforms (e.g., Venus on BSC), to get the highest possible returns on the underlying coins (e.g. BUSD, BNB, LINK, DOT, DAI, USDT, ETH, or BTCB). Native Token Farming vaults take advantage of the high yields of popular farms by investing another asset to earn, sell, and combine the profits of a native reward token.
Once an asset is deposited into a vault, the user is given special mooTokens that represent their share of the vault. A mooToken is an interest-bearing, tokenized proof of a deposit made by the user into the Beefy vault. The mooToken is unique to each vault. So, for example, when a BIFI is deposited into a BIFI Maxi vault, the user receives mooBIFI tokens.
Beefy vaults automatically generate additional assets in the form of compound interest. Accordingly, mooTokens received by the user, increase in value relatively to the corresponding vault asset. The number of mooTokens in the user's wallet remains unchanged, but the number of vault tokens for which they can be exchanged increases. This is also the reason why mooTokens do not match 1:1 with the number of tokens originally invested.
Any member of the Beefy Finance community can develop new investment strategies and submit a vault request, which will be discussed in Beefy’s Discord in the #whiteboard channel. Beefy’s strategists rank the potential investment strategies based on their APY, TVL, and sustainability. The strategies with a top priority will be listed first.
To connect to Beefy Finance, wallets such as MetaMask, Binance Chain Wallet, MathWallet, Trust Wallet, SafePal App, Wallet Connect can be used.
Navigate to the Explore tab if you want to see all the available vaults and your portfolio on the Beefy Finance platform. The vaults can be filtered by blockchain or vault type, as well as sorted by date.
After selecting a suitable vault, click on it and select the Deposit tab in the new window to add two assets into the vault. Depending on the vault type, you will find two options of depositing LP tokens. The LPs vaults require users to deposit their tokens into a pool on a third-party platform (e.g. PancakeSwap) first, to receive LP tokens, which then can be deposited into a Beefy Finance vault. The second vault, called Single Asset, allows users to deposit only one token which will be automatically farmed for more tokens. The earned tokens are deposited back into the vault.
Beefy Finance fees include 4.5% of the harvest reward charged by each vault. That 4.5% on profit is split: 3% goes back to the reward pool and BIFI stakers, 0.5% goes to the treasury, 0.5% to the strategist who developed the vault, and 0.5% to the one calling the harvest function. These fees are already built into each vault's APY and daily rate. You don't have to calculate them yourself.
In addition, some vaults have a 0.1% withdrawal fee. The withdrawal fees stay in the vault and are distributed to vault members.
$BIFI is Beefy Finance's native management token. After an initial distribution of about two months in Q4 2020, 72,000 tokens became available to the community, with 8,000 locked for the founders. All 80,000 BIFIs will be in circulation by July 2022.
By depositing tokens into BIFI Maxi vault, BIFI earnings pool or any BIFI liquidity vault, or simply by holding this token in their wallets, users can participate in Beefy Finance's DAO management decision processes. It doesn't matter which network the user holds the BIFI on, as the management scheme is compatible with multiple blockchains.
BIFI tokens placed in BIFI Maxi storage allow users to accumulate more BIFIs. BIFI is not an inflationary token, meaning that no more BIFI tokens will be issued. That is why BIFIs are repurchased in the open market to be distributed to everyone who has staked in the BIFI Maxi vault. That is why the BIFI rewards for everyone staking in the BIFI Maxi vault are actually the tokens repurchased in the open market.
Beefy has certain security standards and before a new vault is created, the project has to pass a set of so-called “SAFU rules” (a.k.a. safety rules). Beefy verifies the contracts and tokens of each project; ensures that there is enough liquidity and that migrator functions are removed. Moreover, each new vault on Beefy is tested before going live.
In case any suspicious activity is detected in a yield farm, the staked funds are transferred from the farm back to the strategy contract to ensure that assets are always available for stakers to withdraw.
Beefy’s team is a diverse group of anonymous people from all around the world. However, team members can be contacted online through the project’s official Telegram and Discord, and some of them can be met in person at various conferences they attend. Being decentralized, the project welcomes anyone to join the community and develop. Beefy Finance team consists of anonymous developers known as @superbeefyboy, @roastyb1, and @sirb_beefy.
Beefy Finance has partnerships with many projects in the industry. A win-win savings game Moonpot is powered by Beefy and was built by Beefy developers. And cybersports betting platform BetU selected Beefy as the main native token yield optimizer.
On the liquidity side, Beefy works closely with projects such as Scream Finance, SpiritSwap, VVS Finance, BeethovenX and LaCucina.
Beefy Finance users, especially institutional investors, can insure assets deposited on Beefy with Nexus Mutual and InsurAce, platforms providing insurance protection against losses on DeFi platforms.
Beefy Finance did not provide a publicly available roadmap.
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Last updated: Aug 14, 2023
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