Beefy (BIFI Token)

What is Beefy?

Beefy is a Decentralized Finance (DeFi) Yield Optimizer project, that allows its users to make more crypto with crypto. DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middlemen. Beefy caters its users by making it easy to get a yield on their crypto capital in a safe and decentralized manner. Through a set of smart contracts and several investment strategies, Beefy automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem. This provides a huge advantage over attempting to do this manually yourself. Beef up those yields!

The project consists of an anonymous team, directly inspired by the yield optimization projects that had been developed on the Ethereum network. As a team that has been part of the crypto world for many years, we are strong proponents of “Don't Trust, Verify”. This is why data such as our governance token distribution contracts are open for anyone to verify that everything will work as intended. We are committed to this idea of radical transparency, which is especially important in nascent ecosystems like Decentralized Finance.

Beefy offers complex strategies that are simple and intuitive for any investor to take part in through the Vault offerings on the platform. The first set of vaults went live on October 8, 2020 on the Binance Smart Chain (BSC), making Beefy Finance the first Yield Optimizer on BSC. Beefy later expanded to many more blockchains (currently 15+ and counting), establishing itself as THE Multichain Yield Optimizer.

For all the vaults deployed on every blockchain, Beefy has its multiutility token BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake BIFI. As a decentralized project with a deeply ingrained crypto-mindset, there is also a robust governance system in place to put the decision-making power in the hands of those invested in the project by governance mechanisms build around BIFI.

What is BIFI?

BIFI is the multiutility token of Beefy. The utility is twofold: BIFI stakers earn a part of the revenue generated by Beefy, and both holders and stakers are entitled to vote on important governance decisions.

For all the vaults deployed on every blockchain, Beefy has its multiutility token BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake BIFI.

The revenue sharing mechanics entail you can stake BIFI to either earn more BIFI in a BIFI Maxi Vault, or earn blue chips like ETH, BNB, FTM, MATIC, AVAX, and more in the BIFI Earnings Pools.

The supply of BIFI is limited at 80,000 tokens and available on various exchanges.

What makes Beefy unique?

There are a few key reasons as to why Beefy differs from a large number of Yield Optimizers out there today.

1. Safety is Beefy's number one priority. Before a Vault is released, the code has to pass a stringent set of SAFU rules.

2. Beefy largely distributes platform revenue back to those who stake BIFI. With staked BIFI, you essentially hold a revenue share in Beefy.

3. Beefy has talented, industry-leading smart contract developers who carefully test and review the vaults, investment strategies, new platforms and smart contracts before releasing them to the public. Beefy is also actively encouraging developers to contribute and engage to make Beefy an even better product.

4. Beefy is flexible and operates on various blockchains.

5. Beefy offers unique strategies that other yield optimizers simply do not have. This includes Vaults that you can find only on the Beefy platform.

6. Beefy has many recognized partners. This provides the project with credibility and improves overall trust.

What is $BIFI?

$BIFI tokens are revenue shares in Beefy Finance, through which holders earn profits generated by Beefy Finance when staked, and are entitled to vote on important platform decisions.

$BIFI, otherwise known as BIFI, is the native governance token of our project. By staking it in a BIFI Maxi vault, the BIFI earnings pool or any BIFI liquidity vault, or by simply holding this token in your wallet, users can take part in the DAO decision-making governance processes of Beefy Finance. It does not matter on which chain you hold or stake BIFI, since the governance snapshot is multi-chain compatible. Governance proposals are submitted on https://vote.beefy.finance/#/ and users are encouraged to vote. Users do not need to un-stake their tokens to participate in the voting process. This incentivizes much more voter participation as it means users don’t miss rewards.

For all the vaults deployed on every blockchain, Beefy Finance has its native governance token $BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake $BIFI. The revenue sharing mechanics entail you can stake $BIFI to either earn more $BIFI in a BIFI Maxi Vault, or earn blue chips like $ETH, $BNB, $FTM, $MATIC, $AVAX, and more in the BIFI Earnings Pools.

After an initial distribution period of around two months back in Q4 2020, 72,000 tokens were supplied to the community with 8,000 being locked for the founding team. All 80,000 BIFI will be in circulation by 2022-07-06. The distribution via the "governance pools" and detailed info about the timelocks are found here.

$BIFI staked in the BIFI Maxi vault allows users to accumulate more $BIFI. In order to distribute BIFI to anyone who has staked in the BIFI Maxi vault, $BIFI buy-backs from the open market are performed as the token is non-inflationary and will not mint any more BIFI tokens, ever.

To get your hands on BIFI, head to one of the many liquidity pools or exchanges.

How is the protocol revenue distributed?

All revenue generated on the platform from vault fees is sent to and handled by the RewardPool smart contract in the form of the native token of the chain. Anyone who stakes their $BIFI in either a BIFI Earnings Pool or a BIFI Maxi vault receives their proportional share.

What’s the BIFI Maxi vault?

The BIFI Maxi vault allows users to stake their $BIFI much like in the native token earnings pool, but receive instead their rewards in $BIFI. By staking their $BIFI, each participant converts and compounds their share of the protocol’s revenue into more BIFI tokens. As no more BIFI tokens are to be minted, these are provided to stakers by buying BIFI from the open market with the native token of the blockchain.

This Vault is for users that want to convert and compound their share of the protocol's revenue in more BIFI tokens. As BIFI has no inflation, the strategy market buys BIFI with native token rewards.

How Does Beefy Finance Work?

We know that entering the crypto and DeFi arenas can be confusing and disorientating. We know that many have lost money in altcoins and have high levels of scepticism about this new opportunity.

So let's break down what Beefy does in language as close as possible to how the current financial world works.

1. You know what interest is:

You have $10,000 in your bank account and you earn a 12.5% annual return on your investment. After 12 months, you receive a deposit of $1,250 as an interest payment. After five years, you have $16,250.

2. You know what compound interest is:

It's interest on interest. You get interest on the initial amount you put in, and you get interest on the interest already accumulated from the previous years.

So with compound interest, after 5 years you won’t have $16,250, you'll actually have $18,020.

3. Here's what Beefy interest is:

When you take your crypto and stake it on Beefy we find ways to add to the compounding of your asset. If one of the platforms we use gives away a promotional coin on top of any interest, then we take that promo coin and sell it for more of what you staked.

The result is a significantly higher overall annual return.

When Beefy combines your 12.5% annual compounding interest with the 14.2% interest of another site's promotional coin, you get 28.02% APY on Beefy.

Beefy's BNB Venus vault is doing just that. At the time of writing, you get 28.02% APY for your BNB.

After five years, you won't have $18,020, you'll have $34,386; all in the asset you actually staked.