What Is Beefy Finance (BIFI)?
BIFI is the native token of Beefy Finance, which is a multi-chain yield optimizer. It essentially allows users to hold their crypto assets and this way generate passive income. Since Beefy Finance is multi-chain, as of writing this, it allows users to access various DeFi applications across 16 different chains. Analyze the Beefy Finance price chart above to see how the BIFI price changes over time.
Crypto vaults are the main product provided by Beefy Finance. A vault is an investment instrument that employs automation to continuously invest and reinvest funds that have been placed, which contributes to high amounts of compound interest. In other words, a vault is a place where users can stake their digital assets to generate interest. The interest is automatically maximized by employing smart-contract-secured investment strategies.
Beefy vaults automatically increase the amount of deposited assets by compounding it with Beefy reward tokens. Besides, to prevent malicious parties from misusing the vaults, each one has a deposit or withdrawal fee of 0.1% or less. Though the fees are rewarded back to that certain vault’s stakers.
Apart from deposit and withdrawal fees, there’s also a daily performance fee that takes 4.5% of the daily rewards generated by a certain vault. But then, again, the major part of the fee (3%) goes back to stakers. The remaining portion is distributed between the treasury, vault strategists, and the person who initiated the harvest function.
Additionally, keep in mind that users can withdraw their assets from the Beefy vaults whenever they want because they are in full control of these assets.
The Purpose of BIFI Tokens
Beefy Finance tokens have two main purposes – governance and staking.
In terms of governance, BIFI tokens provide holders with the power of voting in Beefy’s DAO. Thus, BIFI holders are able to decide upon decisions considering the future development of the Beefy Finance crypto project.
In terms of staking, BIFI tokens can either be staked in Beefy vaults or BIFI earning pools. When users stake BIFI in vaults, they get a share of the Beefy Finance revenue. When they stake in BIFI earning pools, they are rewarded with BIFI tokens and a portion of the revenue of Beefy as well.
Tokenomics of BIFI
Beefy Finance coins have a max supply of 80 thousand. This makes the tokens deflationary, which means that the BIFI price might increase once the supply becomes more scarce.
However, if you intend to purchase Beefy Finance tokens, be aware that the BIFI price is subject to fluctuation. This means that, apart from rising, it could also fall. This essentially occurs as a result of the volatility of the entire crypto market having an impact on the Beefy Finance price, in the very same way, it affects the pricing of other crypto assets.
