During red periods like the one we have been experiencing over the last week, the best strategy to not lock up money in crypto is definitely to use some yield farming service where it is possible to earn interest on stablecoins or your own cryptocurrencies. There are already dozens of products on the net that offer such services and we’ve reviewed almost all of them, so today we’re going to dedicate this article to one of the few we missed: Beefy.Finance! Great name, isn’t it? Beefy Finance is a fully decentralized yield farming project that focuses its strategies on different blockchains such as: Binance Smart Chain, Avax, Heco, Polygon (which is booming in the last days thanks to the arrival of AAVE on its sidechain) and Fantom. Let’s see how Beefy works and why you should use it to earn significant yields!
What is Beefy Finance?
This cute name with a beef logo is actually a very powerful passive income machine that will help you earn extra money by simply staking your cryptocurrencies. Beefy Finance is a DeFi non-custodial project, so you only need to connect your wallet to participate in their strategies to add funds into their vaults. Don’t be alarmed, even though they are called vaults, in reality the funds remain yours at all times and can be withdrawn at any time of the day as there is no particular locking or vesting.
When you add your cryptocurrencies on their app, Beefy Finance will use secure and already tested strategies that will guarantee you major financial returns, as your money will go to provide liquidity in the various liquidity pools, AMMs and different DeFi strategies. In short, a bit like how Yearn Finance and other top products in the industry work, so a good alternative if you are looking for higher yields. Yearn Finance is known to be a project that is already used by millions of users and therefore offers a lower yield due to the already very high TVL. That’s why there are these alternatives, which usually have lower TVL but higher yields and therefore higher risks!
However, we have to remember that one of the first strategies invented by Beefy Finance went online as early as October 2020 on the BSC network, improving the yield on that sidechain which at the time was not yet as popular as it is now. When a platform is online for this long, obviously this is a sign of confidence and high ambition on the part of the devs behind the project, so the risks should be minimal. Like every similar platform, Beefy Finance also has a governance token called BIFI which you will now learn more about!
The BIFI token of Beefy.Finance
The BIFI token has a very small maximum supply: only 80,000 tokens! Obviously, with this kind of supply, the price will be very high and right now it is $1270. If we do the math, the fully diluted market cap of the project right now is over $102 million. So at first glance, this might seem like a high market cap, but if we consider that the Total Value Locked in the project is over $600 million, then these numbers might even be too low. Remember that the BIFI token touched a low of $3 and a high of $4000, so at the moment the price is closer to the highs than the lows. All DeFi tokens are suffering at this time, so such a correction is more than normal. Obviously, we advise farming the token instead of buying it, as this is the best strategy if you want to be exposed to token governance in all these projects!