1. Home  » 
  2. Finance

What is Harvest Finance? How does Harvest Finance Work?

Harvest Finance is a digital tool that helps people earn more money from their cryptocurrencies by automatically investing them in ways that make them grow, and its native token FARM lets users have a say in how it operates.


 

by Kavitha

Updated Apr 09, 2024

Article continues below advertisement
What is Harvest Finance? How does Harvest Finance Work?

What is Harvest Finance?

Harvest Finance is a smart savings for money in the digital world. It helps to make more money from your cryptocurrencies without much work. All you need to do is just put your digital coins in a special vault, and the method Harvest Finance does all the hard work of finding better ways to grow money.

FARM is like a special badge you get for using Harvest Finance. FARM helps you to decide how things work in Harvest Finance as a result you can get additional coins as rewards. Harvest Finance started in September 2020, but nobody knows who exactly made it. People who do this are called Harvest devs. Right now, there are about 681 thousand FARM coins out there, and they're worth about $18.21 million altogether. 

Article continues below advertisement
Article continues below advertisement

How does Harvest Finance Work?

When you invest your money in Harvest Finance, you receive some special coins called fASSET, which indicate how much you invested. These coins get burned once you withdraw money, but you get money according to your investment growth.

People who run Harvest use a strategy called “timelock” to keep it safe. Whenever they earn extra coins based on their investments, they use them to buy more digital money. So your money keeps growing.

There is also another group of users called the “Council of 69" that decides what Harvest should invest in. They come up with ideas, and then the people who own the special coins called FARM vote on which ideas are the best. If the idea receives more votes, then that idea will attract more investors.

Article continues below advertisement
Article continues below advertisement

Pros and Cons of Harvest Finance

The tabular column below shows the pros and cons of Harvest Finance which an investor should consider before investing;

Pros

Cons

Low fees

Risks of hacks due to operating on Ethereum blockchain

Earning interest immediately

Lack of customer support

High liquidity

Unstable interest rates

Community-driven

-

What is Harvest Finance? - FAQs

1. What is Harvest Finance?

Harvest Finance is a digital tool that helps users earn more money from their cryptocurrencies by automatically investing them in ways that make them grow.

2. How does Harvest Finance work?

Harvest Finance works by allowing users to invest their money, receive special coins called fASSET indicating their investment, and then earn money based on the growth of their investment. Additionally, a group called the "Council of 69" decides on investment strategies.

3. What are the pros and cons of Harvest Finance?  

Pros: Low fees, earning interest immediately, high liquidity, community-driven.
Cons: Risks of hacks, lack of customer support, unstable interest rates.

4. When was Harvest Finance launched?  

Harvest Finance was launched in September 2020.

Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.