Harvest Finance : The reality of APYs

  1. But what about APYs of 300–600% like you are seeing displayed on Swerve.fi? This is where understanding APY is important, and may be very misleading by these projects who display these HUGE returns on your money invested. Why is it misleading? Well if you really did read this fine piece of literature, and understood point 1 above, then you would see that you are only achieving APY if you spend a ridiculous amount of gas through various steps to sell that SWRV and compound the earnings with your base investment. Most humble farmers do not know this important fact, or simply cannot afford the costs of constantly compounding.
APYs for depositing USDC
  1. The second APY listed is the stacked earnings you can gain from depositing the fAsset you receive when depositing to Harvest Finance to earn $FARM. These assets are not automatically staked for you because the fAsset can be sold on the open market. Selling on the open market enables smaller depositors to directly obtain fASSETs (fUSDC, fUSDT, fDAI) without paying high gas fees on the ‘Farm’ page. Smaller depositors will be able to stake their directly obtained fASSETs into the ‘Earn’ page and start earning $FARM right away.
  2. If you made it this far, time for some juicy alpha. Ready? There is a third pool you can stack for more of that sweet sweet nectar! Shhhh…

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