Beefy Finance becomes the highlight of Yield Farming on the Binance Smart Chain network

• Beefy Finance project overview
• Token BIFI of Beefy Finance project
• Should invest in Beefy Finance at this time?
• summary

Beefy Finance and the BIFI token have seen over 70,000% growth in less than 7 months. So what makes Beefy Finance so attractive to investors? We will learn more about it in this article.

Beefy Finance project overview

Beefy Finance is a solution to help investors (investors) optimize farming productivity ( Yield Farming ) and is built on the Binance Smart Chain (BSC).

What problem is Beefy Finance born to solve?

To better understand Beefy Finance, let's take a look at the Yield Farming activity that has been taking place on the Ethereum network . As we all know, investors participating in Yield Farming will be called Yield Farmer. 

They will put their existing cryptocurrencies into protocols that support Yield Farming (such as Compound, Curve, …) and then receive a profit (APY) based on the amount of assets they have. contribute to the protocol.

Their assets will be used by protocols for purposes such as lending or creating liquidity pools for swapping assets. Depending on the protocol, each asset class will have different levels of profit.

Thus, investors wishing to participate in Yield Farming they will have to (1) find suitable protocols that support the type of assets they are holding, and (2) consider the profit level between different investors. protocol to maximize the profit they receive. Sadly, this is completely manual, which makes it difficult for investors to choose the best option to optimize profits. And Beefy Finance was born to solve this problem.

Basically, we can understand Beefy Finance as a place to aggregate Yield Farming options from all existing protocols on the network. When investors use Beefy Finance, instead of having to manually search for the right plan, Beefy Finance will help them automatically search, analyze and choose the most optimal plan to help them maximize profits from this activity. .

Why choose Binance Smart Chain (BSC)?

It can be said that Ethereum is the first Blockchain to support this form of Yield Farming. The major monuments known on this network include Yearn Finance, Curve or Compound, etc. However, the biggest problem that the Ethereum network is facing is the Gas fee. High gas fees lead to a lot of limited network activities, especially small transactions.

The protocols on the Ethereum network are mainly focused on optimizing Gas fees to reduce the burden and attract more participants. For example, when you use the MetaMask wallet for swap operations, the system will automatically search for protocols that match your needs and choose for users the protocol with the cheapest fee. But with BSC, this becomes redundant. On Binance Smart Chain, Gas fees are much lower than Ethereum's Blockchain.

Since now, the cost of moving between protocols is no longer an issue, this concern will be ignored. The protocols on BSC, instead of focusing on optimizing Gas fees, they will automatically optimize the user's liquidity strategies to seek the highest profit. This is the reason why Beefy Finance chooses BSC as a destination for its solution.

Preeminent features available on Beefy Finance

To help optimize farming profits on Beefy Finance, the Vault system plays a key role in this. Vault system here is understood as an investment tool. It uses predefined strategies specifically for Yield Farming purposes. They will automatically invest, reinvest, etc. to bring compound interest to participating investors. The Vault strategy here is a form of smart contract. It tells Vaults on the network what kind of assets need to be "farmed" or where farmed assets can be sold, etc.

Thus, by using Vault system, it allows to fully automate Yield Farming activities of investors. Now, instead of having to manually like before, the only thing investors need to do is connect their wallet to the protocol and "leave" it to the Vault system to handle. The first Vault on Beefy Finance was opened on October 8, 2020. And at the time of writing this article, Beefy Finance currently has 245 active Vaults after 7 months of launch.

245 Vaults is live on Beefy Finance. Source: Beefy.finance.

Beefy Finance's development team

Beefy Finance's development team is comprised of a group of developers and community managers. They run and develop the project completely anonymously. The project's development team, they want everything to be objective to provide the best user experience. 

Token BIFI of Beefy Finance project

BIFI is the native governance token of the Beefy Finance project. These token holders have the right to participate in voting on the protocol's operations.

General information

• Symbol: BIFI
• Contract: 0xCa3F508B8e4Dd382eE878A314789373D80A5190A
• Blockchain: Binance Smart Chain
• Token Standard: BEP-20
• Token Type: Administration Token
• Total supply: 80,000 BIFI
• Circulating Supply: 76,000 BIFI

The role of the BIFI . token

Investors who own BIFI tokens can use it at the protocol in one of the following two cases:

• Governance Participation: By holding BIFI, investors have the right to make proposals and vote on protocol operations. 
• Staking: Those who hold the BIFI token and stake it in the admin group will receive a portion of the fees paid by users who perform farming on Beefy.Finance. This reward will be paid in wBNB and BIFI.

Note: Here we see an additional wBNB coin. Those are fees collected from Vaults in the process of investors performing Yield Farming. This fee is sent to and processed by the RewardPool smart contract as wBNB. Anyone who deposits their BIFI in the RewardPool or BIFI Maxi vault will receive the corresponding share.

How to own BIFI?

There are two ways we can get these BIFI tokens:

• Method 1 : Buy back on exchanges. We can now buy BIFI with BIFI/BUSD pairs; BIFI/BNB or BIFI/USDT.
• Method 2: Provide liquidity to Liquidity Pools on BSC.

After the initial 2 month distribution period, 72,000 BIFI tokens were made available to the community with 8,000 BIFI locked to the founding team. And at the time of writing this article, the number of BIFI in circulation has reached 76,000. When the number reaches 80,000, then the only way to own BIFI is to buy and sell it on exchanges. 

Where to trade and store BIFI

The BIFI token has a trading volume mainly through PancakeSwap and Binance with a daily trading volume of about 3 million USD. 

The nature of BIFI is a token according to BSC's BEP-20 standard, so it is suitable for wallets that support this standard in which it is impossible not to mention Binance's Trust Wallet. 

Price movement of BIFI . token

Beefy Finance has had a spectacular makeover from the time of its launch until now. At the time of writing this article, the price of one BIFI coin is trading around the $2,361 threshold. According to CoinGecko, at the peak of 1 BIFI cost up to 4,116 USD (March 16, 2021). Compared to the initial price when the project was launched, BIFI has witnessed a growth of more than 70,000% after only 7 months of launch.

BIFI copper price fluctuations. Source: TradingView.

Should invest in Beefy Finance at this time?

To have the most overview of the project, to help readers have the necessary knowledge for making investment decisions, I will summarize some perspectives related to this project as follows:

Advantages: The biggest advantage that Beefy Finance brings is optimizing profits for investors when they join Yield Farming through this protocol. This means that if you are a "lazy" person to learn, or you simply do not have too much knowledge about Yield Farming, Beefy Finance will help you do this.

Cons: In fact, the model nature of Beefy Finance is not new. It is simply taking advantage of low fees on the BSC network to offer a more optimal solution for users. Therefore, in terms of ideas, Beefy Finance is nothing special.

Price Volatility: The BIFI token has seen a massive bull run. This can be due to the following two reasons. First, it somewhat "follows" the proliferation of the BSC network. Recently, BSC has been noticed by the community and assessed that it may become "Ethereum Killer" in the near future. Second, the supply limit is low. Similar to Yearn Finance, Beefy Finance only has a maximum of 80,000 tokens. Hence, here are two possible reasons for such a sudden spike in prices.

Whether to invest in BIFI or not will depend on the perspective and judgment of each person. Based on the analysis coming from personal opinions, you can consider it as a source of reference information for making investment decisions in the future.

Summary

Beefy Finance is seen as a copy of the monuments in the previous Yield Farming industry. By cleverly taking advantage of the blooming of the Binance Smart Chain network, Beefy Finance has also reaped certain successes. TraderH4 hopes that through this article you have better understand Beefy Finance, don't forget to share if you find it useful.

• Impossible Finance protocol on Binance Smart Chain suffers from Flash loan attack
• Binance Smart Chain Launches Bruno Update With BEP-95 Burning BNB Mechanism