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HUGE DeFi News – BSC Yield Farming Goes Live On Harvest Finance

Harvest Finance is a decentralized, cryptocurrency “robo adviser” that automatically moves your cryptocurrency to different DeFi protocols so that you can be sure to get the highest interest rate as well as saving on gas from manually moving your funds. It’s a great option for maximizing profit with minimum effort, but unfortunately high ETH gas prices made Harvest finance especially difficult to useuntil Harvest Finance recently announced that it will now be offering Binance Smart Chain farming strategies in addition to its traditional Ethereum chain strategies. In this post, show you some of the costs savings and higher yields that you can enjoy by employing a BSC farming strategy on Harvest Finance. 

ETH Gas is High….Who Knew?

It’s not really a surprise to anyone in crypto at this point, but fees on the Ethereum network are absolutely insane and have made it exceptionally difficult for “normal” investors to use Ethereum based DeFi products. For example, just to enable Tether as a lending asset on Compound Finance costs almost $20 USD. The high transaction fees on Ethereum mean that it can take a long time of lending to simply break even on the transaction cost. Consider that lending $100 USD at 10% interest would take almost TWO YEARS of lending to break even and recover the $20 transaction fee required to unlock Tether on Compound, and that’s not including the fee to actually deposit funds into the protocol. 

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Great News From Harvest Finance

Binance Smart Chain offers the ability to lend crypto with significantly lower fees than Ethereum, but some people may feel uncomfortable lending on a new chain. Not only does lending on BSC require people to install a new wallet and use a new crypto, but the actual protocols themselves are different. Instead of using Compound Finance, someone on BSC might have to use Venus Finance which means that they are not only having to adapt to a new wallet and a new crypto, they are also having to adapt to a new protocol and user interface. By contrast, Harvest Finance now gives people all of the benefits of ending on BSC with the additional benefit of using a familiar interface and platform that they already know how to use. 

I don’t want this article to be an ETH vs BSC article, but I do want to point out that the ability to lend on BSC is a great option for crypto users because it gives them one more choice of how they want to use their crypto as well as some unique advantages when lending compared to ETH. 

According to the Harvest team, some of the key points to consider are that 

  • Transaction costs are lower which means more net profit for farmers
  • There is a constant influx of new farms with high yields
  • Farming on BSC has a reduced profit share fee from 30% to 8%

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In my opinion, the lower transaction fees and influx of new farms are two HUGE benefits. As I pointed out earlier, ETH is so congested that it can take years of lending to earn enough interest to cover the initial transaction cost and break even. By contrast, lending on BSC is much cheaper. Further, it appears that yields on BSC can be quite a bit higher than on Ethereum. This isn’t true in every case, but at least when comparing stablecoin yields on BSC vs ETH there is a considerable difference, and yields on BSC (left) are several times higher than ETH (right). 

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I would imagine that this disparity is because BSC is relatively newer and rages haven’t been arbitraged down to a level of parity yet. I don’t know how long rates on BSC will remain higher than ETH, but at least for the time being, it is something that I want to use to my advantage. 

How It Works

As I alluded to earlier, one of the main benefits of lending BSC on Harvest vs another platform is that Harvest will already be familiar to people who have used it for ETH farming. In order to lend on Harvest, you simply go to the main page and select whether you want to employ an ETH or BSC farming strategy.

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Click the appropriate box and you will then be asked to connect your wallet. After connecting a wallet, find the asset you wish to lend and unlock it. After the unlock, you will be asked to sign a separate transaction for the actual deposit. Altogether the unlock as well as initial deposit cost me a grand total of about $.25 USD, so the cost is a welcome relief especially coming from the Ethereum ecosystem. 

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After that, you will see your funds in Harvest. You have the additional option of staking your f tokens for earning additional FARM rewards if you choose to do so. This will require another (small) transaction.

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Summary

Harvest Finance was the first yield aggregator that I used, and although there are a variety of other yield aggregators that I also like, Harvest Finance remains my favorite. I think part of it is the simple fact that I enjoy the memes and the Farmer Chad persona that the protocol has created, but at the end of the day, Harvest Finance delivers an easy to use, trustable product that allows me to make money in DeFi without a lot of hassle. I think that incorporating the Binance Smart Chain farming strategies to Harvest Finance is a great step and shows Harvest’s dedication to offering a great user experience of all of us humble crypto  farmers. 

As always thanks for reading, nothing is financial advice, and you should do your own research.

References

https://twitter.com/harvest_finance/status/1379547069984034817

https://twitter.com/harvest_finance/status/1379786938635280385

https://harvest.finance/

https://compound.finance/

https://dappradar.com/rankings/category/defi

Image credits

https://www.publish0x.com/@Owl-Yoda

 

 

 

 

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