8/20/2023 0 Comments Harvest finance yield farming![]() We will also in fact give it some leeway and assume that this 55.47% was over the whole year for our thought experiment and devalued at a constant steady rate. With some rough calculations, the token has devalued 55.47% against BTC from Octountil today. We also won’t take into consideration its initial volatile period of true price finding at the release of the coin. Here, we will make another simple assumption that the relationship between FARM and BTC is decreasing over time. Rounding USD values to 2 significant figuresĬonsidering FARM rewards must be taken out and swapped for bitcoin, we also need to look at the long-term general trend of the value of FARM to BTC:.A BTC price of 34,000 USD (rough current price) at the end of the investment period.Assuming each calendar month is exactly 1/12th of a year.Using the higher yield Beefy.Finance BTCB vault.Trading in FARM rewards for bitcoin at the end of the investment period.What I’m looking for here is getting the maximum BTC value (in USD) out of my investment at the end. Let’s assume we have 0.1 BTC to invest in both projects and see exactly how much we get back after a year. This already makes the actual payout when measured purely in BTC a bit more tricky to calculate… What you will actually receive is 4.51% in WBTC and 13.76% in FARM rewards, the platform’s token. When we look into the details, however, the APY given by Harvest isn’t paid out completely in WBTC. Comparing Each Platform’s APYĪt first glance, a whopping 18.27% APY offered by Harvest Finance seems like a safe bet for yield farming your WBTC.īeefy Finance has two vaults on offer for staking your BTCB, one offering 15.58% by yield farming the Venus DeFi platform and the other 3.93% via ForTube To demonstrate my point, let’s take a look at the Ethereum based Harvest Finance yield optimizer and compare it to Binance Smart Chain’s Beefy.Finance. It looks simple… but unfortunately, it’s just not that easy. Naturally, the first thing to do is look for the highest annual percentage yield (APY) out there. Once you’ve gotten Wrapped Bitcoin, you’re ready to start farming some yield. WBTC/BTCB are pegged tokens trading 1:1 with Bitcoin, allowing you to essentially use BTC with all of the fancy features that come with the Ethereum or Binance Smart Chain networks.Ĭheck out this guide on how to use Wrapped BTC in DeFi and also how you can get your hands on some. All I need to do now, however, is exchange my Bitcoin for Wrapped Bitcoin (WBTC) on Ethereum or the BTCB Bitcoin pegged token available on Binance Smart Chain. To start playing around with all the fun DeFi DApps out there, I first need to somehow get my Bitcoin onto the Ethereum blockchain or Binance Smart Chain.Īt one point in time, we would have had to stop right here. Of course, there are a lot of options when it comes to yield farming tokens, but many enthusiasts are in the same position as me and just want to earn some yield from their BTC that’s sitting around. I’m a bit of a Bitcoin maximalist, and it’s also a pretty good store of value. In my case, I’m looking to invest and earn in Bitcoin. The time spent figuring it all out also needs to be factored in, as exchange rates can be volatile in short time periods when it comes to crypto. It’s really a combination of how your yield is paid out, what crypto you want to be exposed to, and the fees needed to get your yield where you want. But after sorting through all the options available, one thing is clear:ĭeFi yields on Ethereum-based projects can be very misleading. In fact, DeFi investors are known to spend a lazy Sunday afternoon comparing APY’s like a regular, old bond broker. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.With the rise of DeFi, squeezing the most returns out of your crypto investments has become a bit of a no-brainer for crypto-savvy investors. compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. ![]() Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. We may also receive compensation if you click on certain links posted on our site. We may receive compensation from our partners for placement of their products or services. While we are independent, the offers that appear on this site are from companies from which receives compensation. All international money transfer servicesį is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions.
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