We’re excited to announce that the ORBS-BUSD pool on PancakeSwap has been added by Beefy Finance to their active vaults!
You can find the Orbs vaults on Beefy Finance at the following link: https://app.beefy.finance/
Beefy Finance is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings. It is one of the leading vault protocols connected to multiple chains, including BSC.
Beef Up Your Orbs Strategies on BSC
Beefy Finance employs automated strategies aimed to optimize yields from liquidity pools by compounding yield farm reward tokens back into your initially deposited asset. This provides a huge advantage over attempting to do this manually, saving on personal time and transaction fees, as well as manual errors. For example, looking at the current data, we can compare the rates between PancakeSwap and Beefy Finance –
PancakeSwap: Beefy Finance:
Despite what the name ‘Vault’ suggests, your funds are never locked in any vault on Beefy Finance: you can always withdraw at any moment in time.
As always, exercise caution when working with 3rd party technologies and educate yourself regarding the risks involved.
Side Note: What is the Difference Between APY and APR?
APR stands for Annual Percentage Rate, while APY is Annual Percentage Yield. The difference is that APR does not include compounding effects. For example, If you were to invest $100 with 100% APR, you would make $100 in profit.
If, however, you reinvest your profits regularly, you will compound your interest. This calculated over a year gives you the APY. The more often you compound your interest, the greater the difference between APR and APY.
As can be seen above, this difference can be quite significant, making Vaults very attractive products for DeFi users.
What Are The Beefy Finance Vaults and How Do They Work?
Vaults are investment instruments that employ automated strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compounded interest.
Liquidity pool (LP) vaults, such as Orbs, work by reinvesting the fees awarded to LP participants. Beefy Finance vaults regularly harvest these rewards, sell it, buy more of the LP’s underlying assets, and then reinvest to complete the cycle thereby achieving a compounding effect.
Beefy Finance charges a fee for this service
When someone deposits into the Beefy Finance vaults, they receive MooTokens as a receipt. Whenever you want to withdraw the tokens that are staked for you in the vault, you need your receipt (mooTokens) which you hand in to redeem the deposited tokens + yield.
Beefy Finance users should hold on tightly to the mooTokens i.e. deposit receipts and not sell or exchange them to strangers or you will lose ownership of your staked assets in the vault.
This is another great integration for the benefit of the Orbs community, more to come in the near future!