What is Harvest Finance?
Harvest Finance is a decentralized yield farming protocol that automates the process of optimizing returns on user-deposited assets across multiple DeFi platforms. Launched in September 2020, Harvest Finance leverages smart contracts to pool user funds into “vaults” that execute yield-generating strategies, aiming to maximize profits through efficient management and automated compounding.
Harvest Finance operates on Ethereum and has extended its reach to other blockchains, including Binance Smart Chain and Polygon. Users can deposit a variety of ERC-20 tokens into the protocol's vaults, where these assets are strategically allocated to earn the highest possible yields.
The platform's native token, FARM, serves multiple purposes, including governance, staking, and incentivizing user participation. FARM holders can stake their tokens to earn a share of the protocol's revenue and participate in governance decisions, ensuring community involvement in the platform's development and management.