Harvest Finance: Crypto Passive Yields Through Farming

Yield aggregators, decentralized protocols that invest crypto funds on your behalf automatically and optimize the investment across a variety of liquidity pools, represent one of the hottest growth areas of the decentralized finance (DeFi) industry. They’ve become popular in the last two years, particularly with the rise of the category leader, Yearn Finance. In 2020, another yield aggregator, Harvest Finance, made headlines by amassing over $1 billion in total value locked (TVL) in just a few weeks after its launch.

Let’s take a closer look at the two-year-old Harvest Finance, and discuss its benefits and potential as a more mature project.

What Is Harvest Finance?

Harvest Finance (FARM) is a crypto asset management protocol that optimizes your funds by depositing them into a variety of liquidity pools on other DeFi platforms. A classic yield aggregator, Harvest Finance employs a variety of investment strategies to automatically deposit and manage your funds, freeing you from the necessity to manually sift through countless DeFi protocols and pools. As such, the platform is a great tool to earn passive crypto income. Additionally, Harvest Finance empowers beginners to join the ranks of yield farmers without the need to dive into all the complexities of the industry.

Harvest Finance allocates your funds to DeFi protocols via Ethereum, BNB Chain, Polygon and, most recently, Arbitrum. There are more than 30 protocols used by Harvest Finance. These include the majority of the popular DeFi platforms — Curve Finance, Uniswap, Compound, SushiSwap, Lido and more.