Exchange Harvest Finance (FARM)

FARM is a token powering Harvest Finance — an aggregator platform designed to help its users maximize their yield farming profits. Harvest Finance was launched in September 2020.

As DeFi space grows, so does the popularity of yield farming — the way for crypto investors to earn passive income on their funds after locking them into smart contracts. For example, one may become a liquidity provider (LP) by lending their money to a DeFi entity, which pays interest on those deposits.

Yield farming can provide handsome rewards, but there are some complications, too: to get the best interest rates and account for losses, yield farmers have to use increasingly elaborate schemes of taking profits, closing out their positions, reinvesting, and so forth. Also, as with all crypto, all transactions have associated fees and gas costs, which are not always feasible for small investors. Harvest Finance solves these issues by:

• Gathering large pools of currency from its users and investing them in bulk to spread out the costs;
• Automating the farming process by reselling, compounding, and staking users’ funds.

70% of the profits generated by Harvest go back into farming pools to get more yield. Another 20% get distributed as rewards for farmers who staked their FARM tokens into the Rewards pool (also denominated in FARM). The remaining 10% is used to increase the value of iFarm — Harvest’s yield-bearing token.