Beefy
How to Start
Introduction
Decentralized finance (DeFi) has gained significant popularity in recent years, offering new and innovative financial tools and services built on blockchain technology. One such protocol is Beefy, which aims to provide users with an opportunity to automate and maximize the return on investment of their holdings. If you are new to DeFi and interested in exploring the world of Beefy, this article will provide a guide on how to get started.
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How to start?
Supported Wallets
MetaMask / WalletConnect / Coinbase Wallet
Contracts
BNB Smart Chain contract for token BIFI: 0xca3f508b8e4dd382ee878a314789373d80a5190a
Platform Functions
(Multichain) Search
By searching for a specific token, you’ll quickly find every vault and chain the asset is available on. There’s no need to mess around with filters; just search and find the token with a click.
Vault page
Each vault has its own vault page with full details on the vault, assets, TVL, APY, historical APY strategy, deposit options, withdrawal options, and vault boost.
Historical rate: The TVL, APY, and price charts for any particular vault are clearly displayed.
Safety score: Each vault shows a detailed breakdown of the Safety Score computed by Beefy’s developers during their strategic assessment.
Strategy: A vault’s strategic description explains what happens at smart contract level with deposited funds.
Asset Details: A description of all the assets involved in this particular vault, with links to all important information about the asset.
Latest Harvest: Users can easily see when the vault was last harvested.
Deposit / Withdrawal: It is described in detail later in this article.
Insurance: Available insurance for the pool.
Where to Put Tokens
The first step to interacting with Beefy consists of going to website and connecting your wallet to the platform by clicking on the “Connect Wallet” button. The button can be found at the top of the page.
After clicking “Connect Wallet,” you will be able to select the relevant wallet.
In the last step, you need to approve the connection in the wallet.
After the previous steps, you are ready to fully interact with the platform. To get started with the earning possibilities that Beefy offers, you will need to learn how to deposit the funds in a vault.
First, go to the Beefy app page, where you will see all the vaults available and represented by their blockchain logos. Then, according to your preferences, use the filters to find the vault into which you want to deposit.
As an example, I have chosen to highlight the wstETH-LDO vLP vault. It is important to note that a comprehensive set of information is readily available for review. This includes, but is not limited to, the Total Value Locked (TVL), historical rates, price, Annual Percentage Yield (APY), Daily APY, the blockchain network, and the platform on which the tokens will be deposited.
Once the selection of the appropriate vault has been made, the next step is to select the token to be deposited. In this instance, the "available" section of the vault displays that it recognizes the amount of 0.001953 $wstETH (a wrapped version of $stETH) in the wallet. However, in case you don't possess any of the specified tokens required for deposit, you can acquire them any time by clicking the "Buy Token" button.
To continue with the deposit process, first click the "Max" button to deposit all the $wstETH tokens in the wallet, followed by clicking on the "Deposit" button. You can also choose a lower amount.
If it is the first time you are depositing in this vault, you will need to grant permission to the vault's contract and allow it to access your funds.
After clicking the “Deposit” button, there will be two required transactions: one for approving the spending permission and one for the actual deposit.
Once the transaction has succeeded, a confirmation message with a block explorer link will appear. Note that your wallet now holds a tokenized proof of deposit called a "mooToken," which refers to an interest-bearing, tokenized proof of deposit that you will receive at the moment you deposit in a Beefy vault. Keep the mooToken and don't lose it, as it is required to withdraw the tokens from the vault.
If transaction is not successful, a Transaction error message appears describing the error issue.
To withdraw from Beefy vault, you need to use the ‘Withdraw’ tab and choose the asset you want to withdraw. ‘BeefyZap’ will then take care of everything else. With one click to Withdraw, it will unstake the Liquidity pool (LP) token, sell the assets into your chosen asset using 1inch API, and withdraw the desired asset into your wallet.
Sources
Analyst Opinion
We have guided you through the process of depositing and withdrawing assets to and from the Beefy app. We also described the Beefy vault screen.
In the Opportunities and Risks article, you can read more about the opportunities Beefy provides.