CVP Proposal - Beefy (Multi-Chain Yield Optimizer)

Beefy is a Decentralized, Multichain Yield Optimizer that allows its users to earn compound interest on their crypto holdings. Beefy earns you the highest APYs with safety and efficiency in mind.

Through a set of investment strategies secured and enforced by smart contracts, Beefy automatically maximizes the user rewards in the DeFi ecosystem.

Beefy has a proven track record of excellence in its services offered. Safety is also our number one priority when it comes to user experience. Beefy also won Binance’s prestigious Most Valuable Builder (MVB) award in 2021. During the recent crypto boom of 2020/2021, Beefy’s vaults were trusted to manage over one billion dollars of TVL.

Features:

:white_check_mark: Support for 15 blockchains with DAO governance

:white_check_mark: Yield-optimization across Liquidity Pools, Rewards Pools, and Lending

:white_check_mark: Safety Scores and deposit insurance opportunities

Read Docs: https://docs.beefy.finance/
Web: beefy.finance
Discord: Beefy Finance
Certik Audit: Beefy Finance - CertiK Security Leaderboard
Explainer Video: Beefy Intro

Why Beefy?

Optimize your yield with Beefy in order to:

  • Automate the compounding process efficiently. There’s no need to mess around with reinvesting and gas fees yourself.
  • Access one of the largest ranges of supported blockchains offered by any multi-chain Yield Optimizer.
  • Easy enter liquidity pools with just a single token using Zap.
  • Take part in exclusive earning opportunities only on Beefy with their escrow coins (beJOE, beFTM, binSPIRIT).

How does Beefy work?

Getting to grips with Vaults

Vaults are the core of the Beefy ecosystem. In a Beefy vault, you earn more of the asset you stake in it, regardless if this is a liquidity pool (LP) token or a single asset. For example, Vaults where you stake BTC-BNB LP will earn you more BTC-BNB LP over time.

Despite what the name ‘Vault’ suggests, user funds are never locked in any vault on Beefy. One could always withdraw from a vault at any moment in time. Beefy also does not own user funds staked in vaults.

In return for depositing your tokens, you’ll receive mooTokens. These are interest-bearing, tokenized proofs of your deposit that can be exchanged for your share of the Vault. Beefy also takes a roughly 4.5% fee (variable by Vault), most of which is redistributed to users who stake the platform’s token $BIFI.

Earn extra yield on top of your vault earnings with boosted projects!

With Beefy, there’s always a way to gain exposure to some of the most innovative and new projects around. Our Beefy Launchpool service promotes exciting projects across various chains. With Launchpool promotions, Beefy boosts certain Vaults with partner tokens in order to give the best APY on fresh ventures.

What do you mean by yield?

Yield is simply the return gained on your investment. Imagine you have $10,000 of BUSD and you get a 12.5% annual return. After 12 months, you will have made $1,250in yield. After five years, you would have $16,250.

With Beefy, we take this yield and reinvest it to start compounding. In our example, after 5 years you won’t have $16,250 when compounding. You’ll actually have $18,020.

How do I deposit into a Vault?

Using Beefy’s services requires only three things: a wallet that can connect to DApps, an asset you want to deposit, and crypto to pay your transfer and gas fees. Let’s take the BNB Vault and BNB-CAKE LP Vault on BNB Smart Chain as examples.

  1. First, you’ll need to connect your wallet to the Beefy DApp using the Connect Wallet button in the top right corner.
  2. Next, choose your desired vault. In our case, the BNB Vault or the BNB-CAKE Vault.
  3. On the Vault page, input the amount you want to deposit. Don’t forget you’ll also need BNB to pay your gas fees when depositing. For a Vault that uses Liquidity Pool tokens, you have two options. You can either deposit into the particular Liquidity Pool yourself (in this case on Pancake Swap), or you can let Beefy do it for you with the Zap feature.
  4. To Zap, you only need to have one of the assets in your wallet. You can of course also do it with both assets. Beefy will then take the crypto you provide, make sure it’s in equal amounts, and deposit it into the Liquidity Pool for you.
  5. Once you’ve successfully deposited, you’ll receive mooTokens as a receipt. You can use these to get back your original stake and earned interest.
  6. You can also Zap out of LP Vaults and choose to withdraw all in a single asset or equal amounts of both.

It wouldn’t be Beefy without top-grade earning potential

Before a new earning opportunity gets Vaulted on Beefy, the project has to pass a stringent set of security rules:

  1. Contracts have been verified in the block explorer
  2. Enough liquidity must be present for swapping farm token rewards
  3. Rug/migrator functions are either completely removed or time-locked sufficiently
  4. Farm token emission rates have to be time-locked (if farm token pairs are being Vaulted)
  5. Farm token holders with >5% circulating supply are not EOAs or multi-sigs
  6. All proxy implementation changes must be time-locked

All of these factors together make up the Beefy security score. This lets out users know at a glance the kind of risk they’re exposing themselves to when investing. Beefy is also accredited with a Certik audit that demonstrates the security of its Vaults and Smart Contracts.

Diving deeper into the Beefy Safety Score

The Beefy Safety Score helps educate users when making a decision to enter a particular Beefy Vault. The Safety Score isn’t necessarily perfect or guaranteed, but it’s nevertheless a useful tool

The Safety Score that a Vault can show ranges from 0 to 10. 10 is the best, and 0 is the worst. It is technically possible for vaults to score less than 0, in which case only a 0 will be displayed.

Risks are distributed in three main categories:

  1. Beefy Risks: Risks that we add by serving as a platform.
  2. Asset Risks: Risks of the asset being handled by the Vault.
  3. Platform Risks: Risks of the underlying farm or platform used.

Each category is responsible for a percentage of the total score. Each category is itself divided into multiple subcategories.

All vaults start with a perfect score of 10 and are subtracted points whenever they have qualities that increase risk.

Beefy doesn’t just earn, it also shares with $BIFI holders

$BIFI tokens are revenue shares in Beefy, through which staked holders earn profits generated by Beefy. $BIFI is also the way we let the community have their say when it comes to platform governance.

Platform revenue is generated from a small percentage of all Vault profits and distributed back to those who stake $BIFI in our reward Vaults.

The revenue sharing mechanics let you stake $BIFI to either:

  1. More $BIFI in a BIFI Maxi Vault,
  2. Blue chips like $ETH, $BNB, $FTM, $MATIC, $AVAX, and more in the BIFI Earnings Pools.

The supply of $BIFI is limited to 80,000 tokens and is available on popular decentralized exchanges like Binance, 1inchexchange, and PancakeSwap.

Beefy’s escrow tokens provide users a Unique Value Proposition

Tokens like Beefy’s beFTM and beJOE allow users to turn locked tokens into liquid assets. Many protocols incentivize the long-term locking of tokens with higher rewards, especially if staked in large amounts.

For many investors, this approach isn’t practical or doesn’t fit in with their investment strategies. Our Beefy Escrowed tokens give stakers access to maximized Validator Node rewards that typically aren’t available to individual investors. By combining the staking power of all Beefy users, we can maximize our rewards and voting power together.

The tokens are loosely pegged to their underlying asset (e.g beFTM and FTM) and can be staked on the Beefy platform and in farms on major DEXs. For example, with beFTM you can:

  1. Deposit beFTM in the beFTM Vault for compounded interest in the form of more beFTM.
  2. Deposit beFTM in the WFTM Earnings Pool for simple interest with WFTM rewards.
  3. Stake in beFTM-FTM liquidity pools on all the major DEXs on Fantom.

Why is Beefy a good fit for the Metis community?

As our twelfth-supported blockchain, Metis has already proved popular with Beefy users. Beefy’s yield optimization services now support millions of dollars in TVL on the blockchain and continues to grow. With comarketing support, we look to offer even more long-term and sustainable utility to the Metis ecosystem as required.