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What We Do
As Decentralized Finance (DeFi) has grown, it has become increasingly common practice for protocols to provide token rewards in return for utilizing their platform, generally in the form of 'staking' tokens or providing liquidity to the protocol which allows it to function. Depositing funds with a protocol with the intent of collecting these rewards is referred to as 'yield farming' or 'liquidity mining.'
Harvest Finance publishes smart contracts on the public blockchain with preprogrammed yield farming strategies, where users can deposit assets and the automated strategies will yield farm on the users behalf at various 3rd party protocols. If any rewards are earned, periodically the Harvest strategy will sell any earned rewards through automated compounding mechanisms to increase the user's deposited amount, potentially increasing their earning power for future rewards. (APR v APY)
The intent of Harvest is to automate the manual process of yield farming that a user would otherwise be doing themselves, and through automated compounding of any earned rewards increase the user earning power from APR to APY.
Last modified 3mo ago