You can build your wealth passively by putting your crypto to work for you through staking, lending, yield farming and other DeFi solutions.
These help you systematically grow your portfolio without taking the unnecessary risk of trading.
However, except you're playing with a reasonable amount of money, and you're "DeFi savvy" you may not be making a lot to make it worthwhile.
More so, with the ever fast-changing DeFi landscape and increasing transaction fees, it's hard to stay on top of your game.
It is hard to manually balance and rebalance your portfolio, harvest and reinvest your earnings in order to take advantage of compounding.
And that's why yield optimizers and vault projects like Yearn Finance, Harvest Finance, Beefy Finance, JetFuel, etc. have become very popular.
What are yield optimizers?
Yield optimizers are decentralized protocols or smart contracts that are programmed to automatically farm, harvest, reinvest the harvest and compound your earnings without you having to lift a single finger other than depositing your crypto with them.
These protocols algorithmically scan the market to find the best yield farming opportunities and compound your earnings multiple times a day to give you the highest possible returns on your investment.
Some harvest and reinvest your returns 4 or 6 times daily. Which is why you will some crazy APYs on some of the yield optimizations platforms we will be talking about soon.
Top 3 yield optimizers on BSC
You already know that I stopped using Ethereum chain for any purposes since late December 2020.
And that has proven to be one of the best decisions I ever made last year.
Aside from the fact that BSC is infinitely faster and cheaper than Ethereum, the APYs I found there are awesomely crazy.
Imagine earning 1.5%+ every day for months.
That's what I have been enjoying on the below yield farms on BSC since I joined them.
AutoFarm
Beefy
JetFuel
Let's take a closer look at each of the below.
1. AutoFarm Network (AUTO)
AutoFarm Network is an automatic yield farming protocol and yield optimizer with arguably the lowest fees among its competitors.
The project is built on both the BSC and Huobi Eco Chain (HECO).
The project's main is to optimize users' yield at the lowest possible cost.
AutoFarm uses its proprietary dynamic harvesting optimizer to determine the most optimal compounding frequency and enable enable the highest APYs for users.
AutoFarm also has a DEX aggregator that routes your swaps across multiple DEXs to help you get the best rates.
The DEX aggregator works by splitting your trade across multiple DEXes to ensure the best prices and lowest slippage possible.
Moreso, your trades are guaranteed to beat those whale bots that front-run ordinary users.
The platform native token (AUTO) is currently trading above $3,000. Up from $600 a few days ago.
Autofarm is known for its low fees. The platform charges an 0.1% controller fee, an AUTO buyback rate of 1.5% on all harvest profits, and an entry or deposit fee of 0.1% on capital.
These fees are similar to what the other platforms charges. The only difference is that, whereas you pay the 0.1% fee on deposits on Autofarm, you pay the same fee on withdrawals on other platforms.
So technically, you will most likely pay more on other platforms, given that your withdrawals will be higher than your deposit if your farming was successful.
But on Autofarm you pay that 0.1% only when you deposit.
For example, if you deposit $100 and farmed it into $5000 you will only pay a 0.1% fee on $100 on AutoFarm and 0.1% on the $5000 on other platforms.
Making Autofarm more appealing because you actually pay a lesser amount.
2. Beefy Finance (BIFI)
Beefy is the first and only yield optimization platform on BSC that I have used so far, and I would be testing others very soon.
Beefy is a yield optimization protocol on the Binance Smart Chain that leverages the low transaction fees on BSC to automatically help users farm, harvest, reinvest, and compound their tokens or LPs.
I think I got hooked because of the simple and easy to use user-interface, as fees have not been a consideration for me so far on BSC.
But soon I will be exploring other platforms just to expand my experience.
Holders of the BIFI token, enjoy governance rights and privileges and a portion of all vaults' performance profits.
Beefy charges a 0.1% withdrawal fee on all vaults, a dynamic performance fee, and a 0.5% call fee during every harvest the protocol performs.
The performance fee is only charged to users who manually call the harvest function rather than wait for the protocol to harvest at its own time.
3. JetFuel Finance (FUEL)
Jetfuel.Finance is an aggressive yield farmer and DeFi ecosystem on the Binance Smart Chain.
The project is a one-stop-shop for DeFi users with its range of DeFi products and services such.
Yield farming and yield optimization
An AMM with a bridge between Ethereum and BSC
Lending and borrowing platform
Launchpad
Staking platform
Everything you need under one roof.
Jetfuel automatically harvests and compounds your yields for you every 4 hours (6 times) in a day.
Which makes it able to provide unbelievably high APY to users on its platform.
I am currently farming the FUEL token with 1.5 APY since late December 2020, till now but only Beefy.
I find the Jetfuel platform a little complicated, compared to competitors and I wasn't ready to use it yet.
Plus I am kinda comfy with Beefy being my first love on BSC.
So I will take my time. Probably, I will take some profit and stake FUEL on the Jetfuel staking platform sometime soon.
Because the returns are much higher compared to what you get farming it on Beefy.
I have a dedicated review post on JetFuel that you can reference here.
Conclusion
Yield optimizers on Ethereum cannot in any way compete with those on BSC.
This is because, on BSC, transactions are faster (takes on 1 to 3 seconds) and far cheaper compared to Ethereum.
Therefore, yield optimizers on BSC are able to perform multiple complex operations and transactions to help generate greater yields for investors.
On Ethereum these multiple steps will be too expensive for the protocols and thus, it's not possible.
So, the returns you get on BSC-based yield optimizers will always be far greater than ordinarily possible.
And the above 3 are the best and well-respected yield farming and yield optimization platforms you can consider using on BSC.
ps: All DeFi risks are present and all teams are anonymous. Always DYOR!
Have you used any of the above BSC-based yield optimizers? What's been your experience so far? Share with us in the comments section below.
Thanks for the update.