7 Reasons Why this Super dApp could be the ‘Chosen-One’ to Compound Your Crypto?

Abhishek Ranjan
4 min readFeb 10, 2022

This multi-chain yield aggregator non-stop brings the highest yields on your deposits — multiple times a day.

Who doesn’t love big and juicy profits? And, it's a real cherry on the cake when these profits are non-stop and tax-free! This has been made possible with the first of its kind multi-chain yield optimizer — Beefy Finance. Beefy allows you to harvest automatic yields many times a day on your crypto deposits to set in the compounding effect on your deposits. The harvested yields upon undergoing compounding can be as high as 3000%.

But, that’s not all. Here are 7 solid reasons why this super dApp could convincingly multiply your money without risking any of it!

  1. Military-grade security - The one thing that you do not want to happen to your investments is to see them succumbing to a technological exploit. Beefy Finance’s robustness and safety for its investors are ensured in three strategic ways. Firstly, Beefy Finance operates with over 10 smart contract developers at its bay whose sole job is to carefully test and review their vaults, investment strategies, new platforms, and smart contracts before releasing them to the public. Secondly, Beefy Finance makes its smart contract codes available for public scrutiny and testing. The idea here is to identify potential bugs and fix them before they can be exploited. Lastly, it’s not just the team and the community’s vigilance Beefy Finance relies on but there is an external audit conducted by non-other than the pioneers in blockchain security — Certik. Now, with your investments secured let’s look at other winning reasons to use Beefy Finance.
  2. Highest yields to choose from - At the time of writing this article, Beefy Finance is operating over 800 vaults on 13 top blockchain protocols that include the likes of Binance Smart Chain, Avalanche, Polygon, and Fantom. Some of these vaults are generating APYs greater than 3ooo% for their liquidity providers. The APYs on stablecoins are also in juicy double digits and the highest amongst all other Defi protocols.
  3. Auto-compounding in native LP tokens - Beefy Finance has created automated strategies to compound the rewards gained from a liquidity pool. This allows for regular harvesting of rewards from the Liquidity pool (LP) vaults, selling them, buying more of the LP’s underlying assets, and then reinvesting to complete the cycle without any manual intervention. As your liquidity share grows in a LP so do your incoming rewards which can then be harvested for reinvesting.
  4. Leveraged Borrowing and Lending - Most Beefy single asset vaults utilize decentralized marketplaces for lenders and borrowers. By depositing your initial asset in the vault, Beefy deposits it into the lending marketplace and borrows against your token at safe levels of collateral. The borrowed tokens are redeposited into the platform, and once again used as collateral to borrow more tokens. This cycle is repeated multiple times to generate as much interest as possible from the lending interest and the reward token, which is used to buy more of your originally deposited assets. This strategy is also known as a folding strategy. It is noteworthy that this “leveraged” multi-lending and multi-borrowing is only with the deposited vault token, so there is no liquidation risk due to token price swings.
  5. No Locking Period - While using Beefy’s vaults it’s on the user to decide how long he/she is willing to stake their tokens or when to withdraw them. Furthermore, Beefy Finance doesn’t own the user funds staked in the vaults. Lastly, to prevent possible exploits from bad actors the vaults have a withdrawal fee.
  6. Intuitive User Interface - It doesn’t matter whether you are a full-time investor or just started to get your hands dirty you will end up liking the no-brainer simple-to-use UI that Beefy Finance operates with. Standard dropdowns and familiar search filters make investing with Beefy Finance smooth and transparent.
  7. Vault Insurance - Beefy Finance offers its users the choice of getting their investments insured with InsurAce.io - a decentralized insurance protocol, at a very nominal premium of 2.9% annually. This protects the DeFi users’ investments against smart contract risks in case of an unfortunate event of Beefy’s smart contract failure. Insurance is completely optional and is up to you to decide if you want it on top of Beefy’s other prevailing security measures.

Since its inception, decentralized finance or DeFi has created numerous earning opportunities for its participants with occasional setbacks. For the first time in the history of finance, a small investor like you and me has the luxury of seeing double and triple-digit returns on our investments.

With Beefy’s all grounds covered what is stopping you from strengthening your financial position?

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Disclaimer: This information is only meant for educational purposes and is not financial advice. DYOR before investing.