Since 2017, the decentralized financial app DeFi has taken the world by storm and has grown in the last year and is still in full swing. As a new paradigm of decentralized financial services DeFi is a transformative force for business, and its development has so far shifted from a competition of technology and mechanisms to a competition of product power.
What is the originality of Beefy.Finance as a decentralized multi-chain revenue optimization platform? How are the generated revenues constituted? What can users get from the Beefy.Finance platform? What is the role of its token BIFI, and why did Beefy Finance choose HECO and MDEX to cooperate with? What should be the future development?
We invited Amanda, Beefy China Community Manager, and Boyang, Beefy China Community Operations, to share their insights on the topic of “Talking to DeFi’s Star Project Beefy.Finance: Achieving Liquidity Mining Once and for All”.
Below is the transcript of the live broadcast.
Media: Beefy.Finance is also the first time to come to our Coin World Community AMA, people still don’t know enough about it, so first of all, please ask Amanda to give us a brief introduction of what Beefy.
Amanda: Beefy.Finance is a decentralized multi-chain revenue optimization platform that enables users to continuously earn compound interest from their digital assets. Through a series of investment strategies secured and executed by smart contracts, Beefy Finance is able to automatically maximize user returns from various liquidity pools (LPs), automated market making programs (AMMs), and other farming opportunities in the DeFi ecosystem.
The main product offered by Beefy Finance is the “Machine Gun Pool” (Vaults), where you can pledge your digital assets. An investment strategy tied to a specific machine gun pool will automatically increase the amount of your tokens by compounding any yield farm reward tokens back to the assets you originally deposited. Despite the name, your funds are never locked in any pool at Beefy Finance: you can withdraw them at any time.
DeFi is unique in that there is no need to obtain authorization or trust, and anyone with a wallet backed by us can trade directly without a third party. When you have pledged assets in a machine gun pool, you still have 100% control over your digital currency assets.
Media: So the user’s funds are never locked in any pool of Beefy.Finance and the user can withdraw at any time. So what is the originality of Beefy.Finance compared to existing products in the market today?
Amanda: Beefy Finance has several key advantages over other existing yield optimizers. beefy.finance returns the majority of platform revenue to users who hold BIFI tokens.
- With BIFI tokens, you essentially own shares of a “company” that pays dividends on its revenue.
Beefy Finance has over 10 smart contract developers who carefully test and evaluate our vaults, investment strategies, new platforms and smart contracts before releasing them to the public. beefy also actively encourages developers to participate in project optimization.
3、Beefy Finance can be flexibly deployed on top of more than one blockchain.
- More people are involved in testing and reviewing, and any bugs are shallow and traceable. We believe that the broader the source code is used for public testing, review and experimentation, the faster bugs of all forms can be found. This is a principle that Beefy has always adhered to.
5, Beefy provides unique strategies not found in other yield optimizers, such as finding liquidity pool pairs only on Beefy.
6、mooVault yield optimizer has a very high APY, and its performance is better than many yieldfarming project competitors.
- It supports the use of decentralized wallets that are officially authorized by Coinworld with a high level of credibility.
Media: So it seems that these 7 unique features are still quite attractive to users, and Beefy Finance also returns most of the platform revenue to users who hold BIFI tokens. So specifically, what can users play in the Beefy community?
Amanda: Beefy is a yield farming optimizer. New DeFi players may ask what yield farming is, and simply put, yield farming is a way to generate interest on cryptocurrency assets.
We are entering an era of global cryptocurrency competition, where more options bring more transactions, and more transactions generate more transaction fees. If you want to benefit from a complex farming investment strategy but lack the time and patience to spend your days frequently clicking and moving digital assets around, then Beefy will be your number one choice.
Think of it this way, Beefy is a one-and-done yield farming platform that works on a daily basis while quietly running in the background to generate revenue. While users join Beefy to safely automate and maximize the ROI of their holdings, Beefy offers a vision of how a group of people with superb technical backgrounds can safely and collectively build the future of global finance to outperform the giants of the traditional financial world.
Media: In this way, Beefy can be said to be a boon for some “lazy” people, who usually don’t need to worry about it, but the platform will run quietly in the background to generate revenue. Can you tell us how the revenue generated by Beefy.
Amanda: Most of the vaults available on Beefy Finance receive a 4.5% earnings bonus, but this is already factored into the APY and the daily exchange rate you see on each vault. So what you see is what you get. Performance fees on the profits of user machine gun pool assets are primarily returned to the holders of BIFI tokens. The composition of the revenue reward is as follows: 3% is returned to BIFI token holders, 0.5% is returned as inventory, 0.5% is returned to the developer of the machine gun pool, and 0.5% is credited to the revenue function. Each Vault is charged a 0.1% or less access fee.
Media: You also just mentioned that the performance fee on the profit of the user machine gun pool assets is mainly returned to the holders of BIFI tokens. What is the use of BIFI tokens? What can users do with BIFI tokens?
Amanda: BIFI actually has three layers of properties.
First, like other cryptocurrencies, BIFI is a digital asset that can be used for trading.
Secondly, BIFI is also a governance token for the Beefy Financial platform. This means that when you hold a BIFI token, you have the right to create and participate in voting on future proposals for the platform.
A third interesting aspect is that the BIFI token itself can be pledged on the Beefy platform, thereby earning a return on cryptocurrency assets, as well as interest through yield farming.
Media: What was said before was all about the various operations and benefits that our users can have on the platform. How do automated market makers benefit from Beefy Finance?
Amanda: It is clear to all that holding cash on hand means losing money in an inflationary market. In this new era of global monetary competition, with the influx of more and more asset classes, trading of assets becomes a decentralized, 24/7 opportunity to optimize the returns of your portfolio. This new opportunity applies not only to digital currencies, but also to fiat currencies, NFTs and individual tokens. Transactions between asset classes are very frequent and will happen across all asset classes.
So the future of asset management will become that all that you have will be continuously put into the market. The global liquidity of assets will mean that traditional market buyers and sellers will take a backseat to automated market makers that can scale to global yield farming. through a series of smart contracts and investment strategies, Beefy Financial will automatically maximize the returns of users in the DeFi ecosystem, allowing automated market makers to automate the optimal allocation of assets.
Media: After all this talk, I believe we all have some understanding of Beefy at this point. As far as I know, Beefy is cooperating with MDEX, why did you choose to cooperate with MDEX?
Amanda: MDEX is the leading decentralized trading platform on the Firecoin ecosystem HECO, and has recently successfully launched on BSC, our partnership is very close. MDEX users are able to benefit from Beefy’s automation and efficiency while providing liquidity to automated market makers.
With the successful launch of BIFI on MDEX, we are working side-by-side with the MDEX team to explore additional incentives, and we are also focusing on cross-community promotions to boost revenue and TVL for users in both communities.
Media: And for MDEX users, how will they benefit from Beefy Finance?
Amanda: Through a series of smart contracts and automated investment strategies, Beefy Finance provides a great expansion of the liquidity of the assets users put into MDEX. As an example, take two liquidity pairs, MDX- BNB and MDX- USD, the liquidity pair on MDEX has a very high annualized return, but if pledged with Beefy Financial, you will get almost double the profit for the same assets.
This is achieved through two main leverage effects. First, we automate the compounding of interest on the user’s assets. Second, we sell all MDX rewards, which results in more assets for pledging as well. The result is that your pledged assets will automatically earn more in a fully automated step, without the need to repeatedly trade MDX tokens.
Coinworld: You just said that MDEX is the leading decentralized trading platform on the Firecoin ecosystem chain HECO, so let’s go one step deeper and ask why Beefy chose to work with HECO?
Amanda: HECO’s features are very much in line with Beefy’s expectations for the blockchain. As we are striving to make DeFi easily accessible and available to all, it is critical to develop on a fast, cost-effective and decentralized public blockchain. Another reason is that HECO and Ether have good compatibility, because our strategic know-how was developed in that environment.
Coinworld: After learning so much about Beefy’s current development, I believe you are more interested in its future path. So let’s talk about planning for today’s last question. What is Beefy Finance’s future development path and what are its plans on the Firecoin ecosystem?
Amanda: We are very happy that Beefy Finance and HECO have reached a partnership. By pledging BIFI tokens on the Beefy platform, users get revenue, and now with the partnership with HECO, users in the HECO community can also benefit from it. Thanks to our eco-partners MDEX and Firecoin Wallet, we believe that more and more users will learn about the benefits of using Beefy. This way, we can create more machine gun pools and services for HECO, which also benefits the global Firecoin market.
- What is Beefy’s marketing and mass adoption strategy? What message do you want to convey to the community through the AMA today?
A: Our goal is to expand our business into China with partners like MDEX. However, we believe that DeFi is for everyone. We are seeing tremendous growth in Southeast Asian countries as well as European and African countries. However, China is our number one target. Our current marketing focus is on user education. We prioritize security and sustainable returns for our users. So we hope to help the growth of the DeFi community through Beefy Finance.
2、How is Beefy’s token economy model designed and what are Beefy’s core values? What is the destruction mechanism?
- Can Beefy follow up on the action to improve the revenue of stable coins, and does Beefy have any better solutions to the current security problems?
A: We at Beefy pay a lot of attention to security issues. Our contract has been audited twice by Certik. As an additional layer of security, we have a “panic button” for each vault, which means that when we find a problem, we can deal with it immediately.
- What is the total number of tokens in the Beefy project, how many are currently in circulation, and how are they allocated?
A: The supply of BIFI is limited to 80,000, available on top exchanges such as Binance, 1 inchexchange and Pancrakeswap.
5、Coinan and Firecoin are both on the chain, is there any difference? Which is a better choice for investors?
A: Currently, we rely on arbitrage between the two chains. Revenue comes directly from the machine gun pool on each chain, and only BIFI holders who have pledged assets on that chain can share in the revenue. This means that senior users can transfer their BIFI to the HECO chain once they find out which chain has a higher REVENUE/Token, and will eventually keep transferring assets between chains, so the returns are actually equal.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/conversation-with-defi-star-project-beefy-finance-enabling-liquidity-mining-once-and-for-all/
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