Everyone in the Crypto world has heard of Binance – the popular digital currency exchange that has been functioning for many years now. Binance has a US specific crypto exchange, Binance US. Beefy Finance runs on top of Binance Chain and Binance Smart Chain.
Running parallel to the main Binance blockchain, the independent Binance Smart Chain launched recently to empower the development of decentralized applications, with full support for Ethereum-based tools, as well as for an enhanced experience with digital assets. But with DeFi trading, it is necessary to generate higher return yields.
Sounds complicated? Worry not, because you can learn how to beef up your yields with this detailed Beefy Finance Review!
What Is Beefy Finance?
Operating on the latest Binance Smart Chain, Beefy Finance is a yield optimization tool that assists in utilizing liquidity pools by providing automated investment strategies. How exactly this works can be read about later in this review.
- What is yield optimization? By staking or lending digital assets to smart contract based liquidity pools, liquidity providers get cryptocurrency rewards in return.This process of generating high returns is called yield farming, and the optimization techniques used to strategically improve or maximize the benefits of yield farming is defined as yield optimization.
By being an effective yield aggregator, Beefy Finance gives users an opportunity to effortlessly become liquidity providers with high rewards.
Beefy Finance Founder
Inspired by the yield aggregation projects on Ethereum under Yearn.finance (YFI), this Binance Smart Chain yield optimizer was founded by a group of skilled developers, known by the pseudonyms @0xbeefy, @superbeefyboy, @sirbeefalot_bnb, and @roastyb1. Other members have also contributed to improving the protocol by creating and conducting test strategies, and so on.
When Was Beefy Crypto Finance Created?
The yield optimizer Beefy Finance was launched in late 2020, fully focusing on improving liquidity on the Binance Smart Chain. The Governance token distribution contracts were published on September 22nd, and the first set of vaults opened later in October that year.
Beefy Finance Investors
According to information provided by the developers, the protocol and its governance token, BIFI, has no investors or venture capitalists; the token is bootstrapped.
Is Beefy Finance Decentralized?
Ranked in the top five DeFi projects, Beefy Finance is partnered with the popular decentralized cryptocurrency wallet, Trust Wallet and works by acting as the aggregator for the liquidity pools on the blockchain. This brings up the question, what exactly is a liquidity pool?
- In short, a liquidity pool is a set of locked up assets under a smart contract, which is in essence, decentralized. This means two things: Users are allowed to exchange cryptocurrency pairs in a decentralized manner, without any intermediary or third party, by paying an affordable service fee. On the other hand, this is a chance for liquidity providers to stake (temporarily lock assets) their tokens to earn a percentage of transaction fees as yield in return.
Seeing as Beefy is an optimizer built on a smart chain that utilizes decentralized liquidity pools, Beefy Finance is in fact decentralized.
Is Beefy Finance Non-Custodial?
Offering assistance to liquidity providers, Beefy is more or less, just a tool that helps improve strategies used in trading on the Binance Smart Chain. It allows users to move tokens at a lower cost but generate higher annual percentage yield (APY). And as previously mentioned, liquidity pools eliminate the need for a centralized custodian. Beefy Finance only provides innovative investment strategies and automates the reinvestment process so that users do not waste time and money.
How Does Beefy Finance Work?
Everything sounds great about the tool so far, but how does the platform work?
Beefy is targeted to optimize automated investments and secure high yields at a considerably low cost. Strategies are coordinated by the community and BIFI token holders, so the protocol is constantly improved. Moreover, there exist staking pools to incentivize DeFi projects and improve yield farming strategies.
Beefy Finance uses a unique feature to maximize yield optimization; mooVaults. What do these vaults do? Vaults are also smart contracts under which investors can lock up their assets and receive rewards in return. A token is provided as the reward so users can deposit into these vaults. There are multiple vaults on the platform, and the transaction fees collected from each are distributed to the BIFI token holders.
How To Use Beefy Launchpool?
A Launchpool allows users to use their tokens to farm a different token. If you stake more tokens, your earnings of the other token will proportionally increase. So, how exactly is the Beefy Launchpool used?
To start with, you must participate in beefy vaults, where you can stake your tokens. Once your assets are staked, you will receive mooTokens as a ‘receipt’.
These tokens are essential to use the Beefy Launchpool, so head over to the Launchpool and choose your desired vault. By staking mooTokens in these Launchpool vaults, you can earn a different token such as BNB in return.
This is referred to as ‘boosted’ vaults, and your assets can be unstaked at any time you wish, even after the vault is finished.
You can take a lot at the Beefy Launchpool here.
What Is MooToken or MooBIFI?
On the Beefy main app, there is an array of different vaults to choose from. By staking in these vaults, you get a ‘receipt’ called mooToken, which gets automatically saved into your wallet.
For example, suppose you stake ETH, then you will receive ‘mooETH’! mooTokens can be collected and used to ‘boost’ your earnings by participating in the Launchpool.
So then, what is mooBIFI?
Essentially, mooBIFI refers to a similar ‘receipt’ you are given when you stake in the Maxi vault, where the rewarded token is more BIFI (native token).
You can check out what ‘BIFI’ is down below. The mooBIFI that you accumulate can then be used in Beefy’s ‘Barn of Trust’, which is a place to stake TWT (Trust Wallet token) and mooBIFI to earn FRONT (Frontier) tokens. These Beefy coins are BEP20 tokens.
Beefy Launchpool Boost
Beefy Finance boosts the vaults in their Launchpool for a short time period; the latest Launchpool boost announced on Twitter on March 27th featured a boost of mooAutoWBNB, where users can earn both wBNB and NAUT tokens in return!
How awesome is that? These APY boosts technically last for a few days (5-7). If you’re interested, you might want to download the Beefy Finance app and get started right away!
What Makes Beefy Finance Unique?
Compared to many other yield aggregators, Beefy offers numerous strategies such as liquidity pool pairs and mooVaults, which improves the annual percentage yield (APY) at a large scale.
A primary feature that makes Beefy unique is the native governance token, BIFI; not only is Beefy an optimization tool, it also allows users to contribute to the platform further by using these tokens to vote and make decisions.
Beefy has many entertaining options to choose; you can simply stake in the ordinary vaults to increase your APY, or if you’d like, you can take part in the Barn of Trust to earn a completely different token. Overall, Beefy Finance is rated as one of the ‘most organized’ systems out there.
What Is Beefy Finance Coin BIFI Token?
Of the unique characteristics Beefy Finance possess, the native token is unquestionably number one – Do you want to know why?
Beefy’s own native token, the BIFI coin is used for governance and transaction fees for the vaults. Holding BIFI tokens is really beneficial, as a percentage of money earned in vaults is given to BIFI holders.
Moreover, with BIFI, you will be eligible to vote on proposals and influence decision making.
You can also stake these tokens in the Maxi vault, which will give you a yield of more BIFI, or the GOV vault, where you can earn Wrapped BNB tokens instead. Isn’t that just exciting?
Governance tokens are designed to improve protocols with the cooperation of users who hold them. These token holders have influence over decisions and new idea proposals.
That being said, by holding BIFI tokens, you will gain the authority to involve in maintaining Beefy Finance; you can vote on proposals and influence the final decision making process.
BIFI 90% Supply Distributed To Users
With around 80,000 BIFI tokens minted, Beefy FInance means to distribute 90% of this supply to its community members; as the governance token can be used to participate in the voting process, experienced users can contribute to decentralize decision making on the network.
The remaining 10% BIFI token is vested to the Beefy Finance team.
Beefy Finance Liquidity Pools
Some examples of liquidity pools on the platform include:
- EPS – BNB LP
- 1INCH LP
- BTC – BNB BLP
- BSCX – BNB LP
But there are plenty more available pools, such as for BCH, ETH, USDT, CAKE and so on! So be sure to check it out.
What Coins Are Supported In Beefy Finance?
Worried that the underrated token in your portfolio wouldn’t be on Beefy? Rest assured!
There is an extensive list of coins supported by this amazing tool, and it covers a wide range, from popular cryptocoins to lesser known ones!
A few common examples are given below:
Beefy Finance Vs Yearn Finance
Bringing yield optimization to the decentralized world, Yearn Finance was the first and most popular optimization project that was built on Ethereum.
However, the tool continues to encounter high gas fees (transaction cost), which makes its expensive usage impractical.
The protocol directly inspired Beefy Finance to bring similar but slightly modified approaches to the Binance Smart Chain, but with a relatively low transaction fee.
In the table below, a comparison between Binance’s Beefy Finance and the Ethereum blockchain equivalent, Yearn Finance, is detailed.
|Beefy Finance||Yearn FInance|
|Blockchain||Binance Smart Chain||Ethereum|
|Governance Token||Yes (BIFI)||Yes (YFI)|
|Supported Networks||BSC, HECO, AVALANCHE||Ethereum|
|Total Value Locked||$424.80M (BSC)||$266.6M|
Beefy Finance Yield Optimization – Beef Up Your Pool Yield
Well, if you are now interested in finding out more about Beefy Finance by firsthand experience, here’s what you can do next:
Head over to the official app website and get started with instantly beefing up your yields! The optimizer is fairly easy to use and has a detailed FAQ in case you face any difficulty. On the page, you will see a list of available liquidity pools; by simply clicking on them, you can immediately start staking your tokens.
But before that, you must connect your crypto wallet to the system.
How To Connect Wallet In Beefy Finance App?
Are you willing to experience Beefy Finance? If you answered yes, then remember that it’s necessary to know which wallets Beefy Finance supports.
Some of the wallets you can try out are
- Metamask Wallet
- Trust Wallet
- Math Wallet
- Binance Chain Wallet
On the Beefy Finance app you just launched via this link, you will see the option to connect your digital wallet. Click on it and pick the wallet of your choice. If you are a new investor and do not have a wallet, be sure to create one so that all your cryptocurrencies can be stored securely.
Pretty simple, right? Now you’re one step closer to improving your yields!
Beefy Finance App
The Beefy Finance app redirects to the liquidity pool page, where you can select from a huge list of various different token pools. Here, you can navigate through features such as the unique “Barn of Trust” addressed earlier.
Beefy Finance Barn
The Barn of Trust on Beefy Finance, in partnership with Trust Wallet, allows users to stake their proof of vault tokens, mooBIFI, or Trust Wallet tokens, TWT, to earn Frontier cryptocurrency rewards in exchange. Stay updated with Beefy Finance on their social media (handles provided below) to be notified when the barn opens and never miss a chance!
Beefy Finance Vote
To maintain the governance system on Beefy Finance, BIFI holders are able to vote on proposals that define new features or improvements to the system. Invest in some BIFI tokens and you too can become eligible to participate in voting!
Beefy Finance Fees
Now coming to the question; does Beefy Finance ever charge you for its amazing services? Here’s the good part, there is no fee imposed on depositing your assets. However, only a 0.01% charge must be paid as withdrawal fee for when you decide to unstake your digital assets.
As for additional charges, there is a call fee of about 0.55% for each harvest. In conclusion though, you will not be charged a big sum!
Pros And Cons Of Beefy Finance
Although still new to the DeFi ecosystem, Beefy Finance tackles the challenges of Binance Smart Chain and enhances the opportunities available to community members. Let’s take a look at the key benefits Beefy Finance offers:
- Above all, a desirable feature of this protocol is that thanks to the intelligent strategies proposed, even small investors are given the opportunity to generate large yields that otherwise only whales and experienced yield farmers are skilled at.
- Another benefit is the affordable transaction cost. As Binance Smart Chain does not have the issue Ethereum struggles with (high gas fees), the transaction fee is considerably low.
- By implementing on-chain governance, community members can take part in decision making to provide the best improvisation to the protocol.
Meanwhile, let’s address the possible drawbacks of Beefy Finance. While the tool is overall, a great creation and is packed with loads of benefits, there are chances of risks.
- Unequivocally, one of the most apprehended risks regarding liquidity pools is impermanent loss. Impermanent loss occurs when the price of assets locked in a liquidity pool changes after provision. At the time of withdrawal, users will face a loss due to this reason. The larger the price change, the bigger the loss is.
Beefy Finance Alternatives
As the practice of yield farming attracts popularity, a great number of revenue optimization projects have been created. Beefy Finance is one of the top three favoured optimizing tools, the other two being Ethereum-based Yearn Finance and another large yield aggregator, Harvest Finance.
Here are some of the best yield optimization alternatives that work like Beefy FInance:
If you’re interested in yield farming on the Binance Smart Chain, bear in mind that the all new Beefy Finance is the first and currently, the only yield-generating protocol to be launched on the chain.
Beefy Finance Social Media Handles
Key Takeaway – Beefy Finance Crypto Review
- Beefy Finance is a yield optimizer that maximizes your APY by providing automated investment strategies so there is no need for any manual work with your yield farming.
- The governance token, BIFI, can be used to involve in improvising the network and maintaining governance.
- There are numerous liquidity pools to choose from, and you can earn rewards in the form of the token you provide as liquidity.
- Additionally, Beefy Finance offers extra features such as staking mooBIFI to earn FRONT tokens.
As it stands, the optimization tool is already full of perfected features and minimal disadvantages. But since the genius protocol was just launched into the decentralized world, there is great room for development, so make sure you stay alerted on updates from Beefy Finance!
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates