FARM is an Ethereum token that powers Harvest Finance, a yield optimizer that moves funds around the decentralized finance (DeFi) ecosystem in an effort to generate yields. FARM can be used for staking and yield farming on Harvest Finance.
What Is Harvest Finance (FARM)?
Harvest Finance is a farming protocol that automates the process of yield farming for users. Yield farming is a process of locking up the holdings in a smart-contract-based liquidity pool and generating rewards. Moreover, yield farming involves lending crypto using DeFi (decentralized finance) protocols in exchange for a fixed or variable yield rate. According to the website, thus, using the Harvest protocol, users trading in the cryptocurrencies may generate profit from DeFi platforms with the help of the latest farming techniques. All the more, Harvest aims to be a tool for yield farmers of all sizes to obtain automated access to the highest yield available across a variety of DeFi protocols.
The main reason behind using Harvest Finance protocols, according to the FAQ section, is to avoid manual farming procedures, which may be time-consuming for an average user. Harvest Finance automates farming with regular harvesting on more than 100 different farms. Hence, the protocol provides an automated, simple, and affordable method for yield farmers to get involved in yield farming.
In addition, as this website cites, Harvest aims to utilize multiple strategies that are adaptable and future-proof. Using these strategies, various past and future assets can be farmed through Harvest. Besides, Harvest aims to make it simple for outside developers to contribute and be rewarded for their efforts with consistent and straightforward designs.
Further, the Harvest platform utilizes its governance token, FARM, which is used to provide incentives to yield farmers using the platform. Moreover, FARM is an Ethereum token used for staking and yield farming on Harvest Finance. One of the unique features of the FARM token is that it gives the holders the right to a performance fee derived from Harvest's yield farming techniques. The performance fee is used to purchase FARM tokens in the open market, which in turn is distributed to the users staking FARM in the profit-sharing pool. However, each strategy may focus on a different type of asset. Additionally, the FARM token receives its value from the profits made through various deployed strategies.
History of Harvest Finance (FARM)
The Harvest Finance platform was introduced anonymously on September 1, 2020. With a circulating supply of 0 at launch, the FARM token was released without any premining and funding from venture capitalists or investors.
How Are New FARM Tokens (FARM) Created?
Harvest Finance is a staking as well as a yielding platform that allows users to earn FARM tokens by facilitating the exchange of coins like ETH, WETH, USDT, FARM, and more. To participate in staking, users must first have FARM, which can be obtained through Harvest's yield farming pools or by purchasing FARM from the open market. Afterwards, FARM must be staked in the profit-sharing pool, which compounds automatically.
Once the FARM is purchased on the open market, it is dispersed pro rata per second to all the people who have staked in the profit-sharing pool over the course of one day, with each additional reward added resetting the payout period. As a result, the profit-sharing pool's instantaneous reward rate swings throughout the day. Thus, for this pool, a 7-day average of the reward rate is displayed under stats on Harvest.finance. Additionally, one can check the current rate by reading the contract directly.
Further, there is an auto-compounding feature implemented to the profit-sharing pool to correct the observation that the FARM reward token supplied to users needs to be claimed and restaked on a regular basis. Thus, whenever a user adds funds to or removes funds from the profit-sharing pool, the rewards for all users are instantly collected and restaked in order to improve their profits and save long-term stakers' gas (fee).
How Many FARM Tokens (FARM) Are There?
FARM tokens have a maximum supply of 690,420 FARM coins.
How to Buy Harvest Finance (FARM)
Users can trade FARM using Coinbase's centralized exchange. The token is available on Coinbase.com and on Coinbase Android and iOS apps.
