Beefy’s approach is “Set and forget,”, which makes the app one of the easiest to use within DeFi platforms. Basically, you just need to deposit any supported asset into the vault and leave it there until you want to withdraw.
Beefy offers a variety of investment strategies that are represented in the form of vaults.
The highest APYs are usually to be found in new vaults connected with one of the new DeFi projects. These vaults can offer an APY in the thousands of percent, but they are also riskier (as represented in the Beefy safety score) because the assets are usually very volatile, which means they can go up or down a lot in terms of USD value or there is a higher chance of an impermanent loss (IL).
On the other hand, the vaults with the highest safety score are mostly stablecoin liquidity pools (LP) positions on reputable platforms. These come with a lower APY, usually no higher than 10%.
The optimal strategy could be to use the vault with the token(s) you are already holding as an investment.
Risks

• ‍Impermanent loss - Assets deposited can decrease in monetary value (less in USD) but usually, the user can withdraw a higher number of tokens than was originally deposited.
• Smart contract risk - As with any smart contract, the ultimate risk is that an investor's funds can end up stolen or unable to be withdrawn. Beefy does take steps to quantify the security risks of smart contracts and will only interact with ones that meet a specific set of requirements after excessive testing to make sure the underlying platform does not contain so called 'rug pull' functions. Each vault’s safety is expressed by the Beefy Safety Score.
• Contagion risk - Beefy offers a variety of mooVaults, only a small portion of which are likely to fail at any given time. Concentration risk may occur if Beefy only has a limited selection of mooVaults available, or if many of the mooVaults are tied to the same assets or projects. To mitigate this risk, Beefy has established guidelines (called Beefy SAFU Practices) for evaluating and accepting projects into their Launchpool program. While the protocol cannot guarantee the solvency of any Launchpool project, it does perform due diligence to ensure that none of the accepted projects are rug pulls, which refers to a sudden and unexpected withdrawal of funds from a project.

The biggest competitor for Beefy is Yearn Finance (token YFI), whose TVL is 400 million USD (Jan, 2023) compared with Beefy’s TVL of 260 million USD. Yearn Finance is available only on 4 chains, where Beefy is available on 18. Yearn Finance gained a lot of popularity in DeFi in summer 2020. Other similar protocols are Harvest Finance, Idle Finance and Badger DAO.

Beefy finance is an easy-to-use platform to earn yields without needing to watch many parameters. After you deposit, everything is done automatically in the background.