FARMUSD
Harvest Finance / United States dollar
crypto Coinbase

Harvest Finance is an asset management platform which seeks to maximize yield for assets deposited into Harvest vaults. The protocols vaults execute various yield farming strategies; the profits from these strategies are split between liquidity providers and rewarding users staked in their profit sharing pool. Harvest Finance is a yield aggregator allowing users to pool deposits into vaults, this collectively reduces gas costs which further drives higher yield for users. The protocol is comprised of vaults into which users can deposit a variety of tokens including stablecoins like USDC, or more exotic assets like Sushi LP tokens. Each vault has an associated strategy which determines how deposits will be utilized in order to maximize yield. Vault strategies typically deposit their holdings into an incentivized decentralized finance protocol, such as Curve, and periodically sell the farmed tokens on the open market. Strategies are implemented by the core development team, and are also subject to a timelock mechanism which essentially provides depositors a withdrawal window should they disagree with the deployed strategy. The farmed tokens are sold for more of the underlying assets that users initially deposited into the Harvest Finance vault. In return for deposits, users are given an fToken (for instance, fDAI). The fToken represents a depositors share of the vault, and is also an ERC-20 token. Depositors can stake their fToken back into the protocol to earn FARM tokens. The accrued FARM tokens can be claimed by the user at any point. Claimed FARM tokens can also be staked into the Harvest Finance FARM profit sharing pool which providers stakers with additional FARM. In order to provide this additional FARM, a 30% performance fee is taken when the yield harvest function is called for a vault. The 30% fee is used to buy FARM on the open market which is then allocated towards the FARM profit sharing pool. New FARM tokens are emitted weekly with 70% allocated towards liquidity providers, 20% allocated towards the development team, and 10% allocated towards the operational treasury. The operational treasury is used as a funding source for other projects that could be beneficial for Harvest Finance, as well as paying for community creativity contests. Community members can propose ideas for how the treasury should allocate funds, but ultimately the core development team controls how the treasury is spent.