Beefy Finance (BIFI): Review of Cryptocurrency Token and Profitability Optimizer for Binance Smart Chain
Beefy Finance is a profitability optimizer on the Binance Smart Chain. There are already a number of similar solutions for Ethereum’s DeFi protocols, but the BSC has a slightly different issue. While it makes sense to focus on gas savings on Ethereum to avoid high commission costs, fees are already low, so the focus is on automation to deliver the highest returns with the least amount of interactions.
BIFI is a token for decentralized project management. Has a maximum emission of 80,000 BIFI. Of these, 74,000 have already been distributed among community members, and the remaining 6,000 remain for the founding team, but access to them is blocked for time.
The editorial staff of Btcnewsweb.com offers an overview of the main features of the project and its token, which is currently traded only on decentralized platforms, but may appear on the Binance exchange in the near future.
03/16/2021 Binance (binance.com) has listed the Beefy Finance (BIFI) token. Trading is available in BIFI / BNB, BIFI / BUSD pairs.
BIFI token price to USD
|Name||Price||Market Cap||Supply||Change % (7D)||Performance|
|Blockchain||Binance Smart Chain|
|Current issue as of 06.02.21||74 000 BIFI|
|Total emission||80 000 BIFI|
|Course for 02/06/21||726 $|
|Market Capitalization as of 06/02/21||58 636 570 $|
|Social network||https://twitter.com/beefyfinance; https://t.me/beefyfinance|
|Exchanges||PancakeSwap, StreetSwap, trade.bscswap.com/#/swap; https://classic.openocean.finance/exchange/bifi|
Beefy Finance (BIFI) to Binance USD (BUSD) chart
BIFI / BUSD price chart on Binance exchange:
How the protocol works. Vaults
The essence of the interaction is to create and use storages – Vaults, similar to the usual DeFi pools. A warehouse is an investment vehicle that uses a specific set of strategies to automate the best available profitable farming opportunities. Anyone in the community can create strategies and then submit them to the public court for voting.
Vaults liquidity can be expressed in any asset. Some assets are provided as collateral for others. The earned profit can be reinvested.
Working with vaults allows you to save on commissions, maintain a normal ratio of collateral to debt, automatically reinvest profits and optimize for optimal profitability.
There are two main types of repositories:
✅ Money Market: Uses stablecoin lending platforms such as Fortube to maximize returns on various coins (BUSD, DOT, DAI, USDT, LINK, ETH, or BTCB).
✅ Native Token Pharming: Allows you to invest various assets in order to make a profit in the form of a native BIFI token.
When a user deposits any coins, they receive called mooTokens, which symbolize the user’s share in a particular vault. Only the type of asset that you have brought in can always be withdrawn from the Vault. There are risks here – for example, you invested 10 BNB and withdrawn 10 BNB, but BNB itself could fall in value during this time. Also, a commission of 0.1% is charged for withdrawing funds.
Beefy Finance video review (more videos here):
Strategies at Beefy Finance
Beefy strategies are modular smart contracts that tell vaults what assets to process and where to sell them. The rewards received are regularly collected, exchanged for the original vault asset, and again deposited for complex farming. Every connection between Vault and strategy is hardcoded and the code is completely immutable, so once they are created, they cannot be stopped. No one can technically change repositories and strategies.
To release a new strategy for any asset, you need to create a new storage and smart contract. There are currently several strategies for lending through Fortube and FRIES. As the number of strategies grows gradually, the developers plan to create a dashboard and filter tools for the user experience.
Members can post and discuss their own strategies on Discord https://discord.gg/yq8wfHd on the #strategies channel. There will be a template to help you get started.
The purpose of BIFI tokenomics is to create incentives for the growth and sustainability of the Beefy protocol. The inflation-free model aims to reward early adopters and effectively incentivize token holders who contribute to the future of the protocol. Many modern economic models in DeFi take advantage of token inflation to drive high annual rates. In the short term, this sometimes works great, but in the end it hurts most holders, and only benefits those who use various active mechanisms to squeeze the maximum possible profit.
Beefy takes a simpler approach. Token holders have the right to participate in all past, present and future cash flows under the protocol, which is achieved through a pool of rewards. Currently, vault users’ protocol fees and other forms of income are shared among BIFI stakers. Also, token holders are positioned as partners providing capital for the development of the company in exchange for high profitability with minimal risks.
The BIFI rate increased by 770% in January 2021 and at the beginning of February is $ 726.
Beefy Finance is a protocol that took as a basis the traditional implementation of pools for profit, but worked it out in a new way for BSC. Judging by the team’s attitude, this is just the beginning – the developers plan to actively innovate further. An inclusive community management system aims to attract many like-minded people to the crypto space, supporting further developments. The project is currently focused on establishing itself as the leading profitability optimizer at BSC, however, in the longer term, members of the BIFI community have expressed a desire to move to a cross-chain system.