Top 5 Revenue Aggregators at a Glance: Features and Comparisons

Yield Aggregators are protocols that automate the process called “yield farming.” Yield farming is a term used to define the following processes:

  • The investment will incur an agreement for interest (or income).
  • Collect these returns, usually paid as native tokens of the investment agreement (also known as “harvests”)
  • Sell these tokens in DEX
  • Earn the corresponding interest and can reinvest in the same agreement, thereby expanding the size and return of the investment
  • In profitable cases, repeat all steps

How does the Yield Aggregator help investors?

Completing all of these steps manually requires a lot of time, knowledge, and interaction with different blockchains and protocols. The main benefits of using a revenue aggregator for management are cost reduction, optimization of the harvest cycle (as the protocol is constantly scanning the network), and reduction of the time required to manage all investments.

By using the yield aggregator protocol, the only step investors need to do is to transfer the assets to their smart contract and receive a receipt for that transaction. It will then deploy the funds into different investment strategies. They will manage positions and be responsible for the re-investment work. The Thome protocol will also add new policies and automatically deploy funds to these new opportunities.

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Top 5 Yield aggregators by TVL – Source: Footprint Analytics

This article will introduce the top 5 revenue aggregators by TVL and explore their main characteristics.

 Yearn Finance

Yearn Finance was one of the first revenue aggregators, launching on July 17, 2020. Its prototype is the iEarn protocol published by Andre Cronje on the Ethereum blockchain. Currently, it is deployed on the Ethereum, Fantom, and Arbitrum chains, with plans to expand to Optimism.

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Yearn Finance TVL by chain – Source: Footprint Analytics

While it focuses primarily on the Ethereum chain, Yearn Finance began integrating other chains in early 2022 as it identified new opportunities.

Features of Yearn Finance

Its main product is yVaults, where investors can deposit assets for long-term returns (gains). They have a large number of available assets (more than 100) to choose from, and investors can filter their searches by APY (annualized return), total assets (TVL per vault), or assets available in the wallet.

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Yearn Finance – yVaults list

When the asset icon is clicked, a specific vault page opens, where more information can be found, such as a description of the investment strategy related to the vault. Each yVault can process 20 policies simultaneously.

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Yearn Finance also offers an exchange function (called “Zap”) in deposits. For example, if an investor wants to deposit funds in a DAI vault but does not have a DAI token in his wallet, he can use a different token, and the protocol handles the exchange and vault deposit.

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Yearn Finance Token: YFI

Yearn Finance’s native token is YFI. The token holder can actively participate in the governance of the agreement. However, one proposal provides some freedom for different groups of contributors working on the agreement. This means that not every decision will be submitted for a vote.

Currently, token holders do not receive any part of the agreement’s revenue. The proposal that is running is for the treasury to buy back tokens from the market, reducing the supply in circulation. The change is approved by the governing body, which opens up the possibility of sharing a portion of the revenue with token holders.

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Yearn Buyback page

Advantages and disadvantages of Yearn Finance

merit

  • Investors can make deposits using tokens from different vaults
  • Constantly update the strategies used to generate revenue

shortcoming

  • Token holders do not receive a share of the platform’s revenue

Beefy Finance

Beefy Finance went live on BNB Chain on October 8, 2020, becoming the first revenue aggregator on BNB Chain. Later extended to other blockchains (currently more than 15), the following image shows Beefy Finance’s TVL on each chain.

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Beefy Finance TVL, Breakdown by Chain – Source: Footprint Analytics

Beefy is not available on the Ethereum blockchain, but when we look at Assets Under Management (AUM), Polygon ($78 million), BNB Chain ($66 million), and Fantom ($55 million), its strong presence makes up for it.

Features of Beefy Finance

Its main product is also Vault, but its subdivision is different. Instead of building asset vaults and tying them to different strategies, Beefy Finance creates new vaults for each strategy it develops. It currently has 646 vaults.

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Beefy Finance Vault selection

Vaults can be filtered by chain, asset type, and APY, Daily Return, TVL, and Security Score. When you click any vault, an overview page appears.

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Beefy Finance Vault Page Overview

On this page, you can access additional information about the vault, such as a description of the strategy used, the assets that make up the vault, and charts containing past metrics. Beefy Finance also offers “Zap” functionality, but the functionality is limited. It only applies to certain vaults, and the exchange is enabled for the assets that make up that vault.

Beefy Finance also offers an upline option where investors can buy cryptocurrencies in fiat currency and then deposit them in their vaults.

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Beefy Finance Page for Buying Crypto

Beefy Finance Token: BIFI

Beefy Finance token is BIFI. It can be used for governance (voting on proposals to improve the protocol). Investors can deposit it in two special vaults. BIFI Maxi and BIFI Earnings Pool.

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BIFI staking Vaults

The first is to distribute the revenue share to token holders, purchase BIFI in the marketplace, and then distribute it to the pool participants. Since no new BIFI is minted, this buyback and allocation increases the relative share of each token holder.

The second pool distributes the generated revenue (in the blockchain’s native token) to the pool’s participants. Each chain will distribute a different token.

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BIFI Revenue Sharing Pools

Pros and cons of Beefy Finance

merit

  • The protocol has a large number of assets and chains to choose from
  • The protocol shares revenue with token holders

shortcoming

  • The protocol is not deployed on the Ethereum mainnet
  • Zap has limited functionality

Badger DAO

BadgerDAO is a decentralized autonomous organization (DAO) focused on improving the utilization of Bitcoin in decentralized finance (DeFi) across multiple chains. It launched on December 3, 2020 and currently runs on Ethereum, Polygon, Arbitrum, and Fantom. The following figure shows the distribution of TVLs between chains.

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Badger DAO TVL by chain – Source: Footprint Analytics

Most TVLs are focused on Ethereum, but this also reflects the asset that Badger DAO is focused on: wrapping Bitcoin into other blockchains. Most of them are available on the Ethereum mainnet.

Key features of Badger DAO

Its main product is the vault (also called sett), which works in the same way as other yield farming aggregators, but focuses more on tokenizing BTC to automatically earn money.

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BadgerDAO vaults page

Investors pay for insurance in inventory. The smart contract then puts these assets into work to execute the selected strategy for the specific sett where the user deposits funds. Badger does not provide “Zap” functionality to exchange required assets.

Investors can increase deposit yields by holding native assets in the agreement. The ratio between these native and non-native assets will determine whether it can be promoted.

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Boost Calculator

Badger DAO Token: Badger

Badger is the native governance token of BadgerDAO, so its holders can make proposals for DAO. It has a maximum fixed supply of 21 million and can also be used as collateral across different DeFi platforms.

Holding Badger in your wallet increases your APY in other Sett Vaults as part of the Badger Boost system.

Advantages and disadvantages of Badger DAO

merit

  • This protocol provides a high amount of APY for BTC to enter DeFi.

shortcoming

  • The agreement does not share revenue with token holders
  • There is no Zap feature

Autofarm

Autofarm is a protocol that provides a suite of DeFi tools. It was launched on BNB Chain in December 2020 and has now expanded to a total of 19 chains. The following illustration shows the TVL distribution between all chains.

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Autofarm TVL by chain – Source: Footprint Analytics

Autofarm TVL continues to focus on BNB Chain ($34 million), but TVL from Polygon ($7.18 million) and Cronos ($5.41 million) also has a share.

The main features of Autofarm

It proposes two products: a yield aggregator and an exchange aggregator. The best route for the exchange aggregator is to make the exchange that the user wants. It is available in BNB Chain, Avalanche, Cronos and Polygon. So, while it doesn’t provide native Zap functionality, in these public chains users can exchange assets without leaving the protocol interface.

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AutoSwap Page

The main product is also the vault. Investors can use filters to select chains, assets and orders by APY.

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Vaults Main Page

When you click a vault, its page opens with detailed information about the vault’s performance, the policies it uses, and the assets.

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Vault page with detailed information

Autofarm Token: Auto

Auto is Autofarm’s native governance token. It is used to vote on the number of Autos that will be burned or distributed as revenue to Auto holders who put them on the Auto Vault. The vote is held once a month.

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Governance Vote Page

Autofarm pros and cons

merit

  • The protocol shares revenue with token holders

shortcoming

  • The interface is cluttered
  • There is no Zap feature

Idle Finance

Idle Finance is a protocol that has a set of products that allow users to algorithmically optimize their digital asset allocation in the leading DeFi protocol. Iteration went live on May 18, 2020, and its TVL is shown in the image below.

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Idle Finance TVL by chain – Source: Footprint Analytics

Despite its launch on Polygon on November 10, 2021, almost all of the liquidity remains on the Ethereum mainnet.

Key features of Idle Finance

It proposes two products. Best yield and Tranches. The best yield products are designed to automatically get the best yield from different loan agreements, so investors don’t need to do this manually.

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Best Yield Selection Page

If the asset is not in the investor’s wallet, it can be purchased in fiat currency or cryptocurrency.

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Fiat On-Ramp Page

There are two types of Tranches products: beginner Tranches and advanced Tranches. The main difference between them is the risk exposure. Junior Tranches can achieve better results by taking additional risks.

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Tranches Main Page

When an investor clicks on any one lot, the page of the vault is loaded and all the information about it can be obtained.

Idle Finance Token: Idle

Idle Finance token is Idle. It is used for governance and can be pledged to increase the return on insurance inventory. The agreement is also used to incentivize investors to deposit assets on the agreement.

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Voting Page

Idle Finance advantages and disadvantages

merit

  • Tranches with clear risks

shortcoming

  • Available only on the Ethereum mainnet
  • There is no Zap feature

index

  • TVL Variation

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TVL Variation, last 120 days – Source: Footprint Analytics

Looking at TVL changes over the past 120 days, Yearn Finance’s value has fallen sharply (from $1.2 billion to $500 million), while Beefy Finance has fallen from $420 million to $300 million. Yearn Finance is primarily affected by the downside of Luna+3AC.

  • TVL By Chain

Ethereum remains the preferred investment destination because it deploys more DeFi protocols and is part of a revenue aggregation strategy that provides new protocols for new tokens.

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TVL By chain – Source: Footprint Analytics

This also helps explain why Arbitrum and Optimism made it into the top 5, as it recently launched a campaign to retain users and protocols (Arbitrum Odyssey and Optimism token airdrops).

Tokenomics comparison

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Each revenue aggregator has a different strategy for its native token. Badger and Idle use it to boost rewards in the vault. All agreements are repurchased with profits to reduce circulating supply. But Beefy Finance is the only protocol that takes a portion of the revenue and shares it with token holders (with their BIFI revenue pool).

Key implications for investors

A yield aggregator is a protocol that takes over all the burden of managing income farming from investors. Nowadays, one can be used in almost all available chains.

For investors, there are two clear opportunities:

Use it to manage their investments. All you need to do is look for the protocol or chain that corresponds to the asset that offers the best return and make a deposit there. They have options for different risk profiles.

To invest in their tokens. Almost all revenue aggregation protocols have their own tokens. In addition to the price changes associated with the market and protocol performance, the best token is to make its owner eligible for a portion of the agreement’s revenue.

This article is from the Footprint Analytics community contribution. Footprint Community is a global, mutual, data community where members use visualized data to co-create compelling insights. In the Footprint community, you can get help building links to exchange learning and research about blockchain related to Web 3, Metaverse, GameFi, and DeFi. Many active, diverse, and highly engaged members inspire and support each other through the community, and a worldwide user base is built to contribute data, share insights, and drive community growth.

The above content is only a personal opinion, for reference and exchange only, and does not constitute investment advice. Feedback is welcome if there is an obvious understanding or data error

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/top-5-revenue-aggregators-at-a-glance-features-and-comparisons/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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