Harvest Points Its BuyBack Mechanism to Bancor
As Bancor’s $FARM Pool surpasses Uniswap on liquidity depth, Harvest points its Buyback Mechanism to Bancor
Dear Farmers and Bancorians,
Today we have exciting news for both communities. Harvest has officially pointed its buyback mechanism over to Bancor. This results in constant buying pressure of the $FARM token, happening right at Bancor.
A short story on Harvest’s buyback mechanism:
For most farming strategies (vaults), Harvest Finance has a rule that 70% of profits go directly to stakers, with the remaining 30% going to FARM buyback. Harvest then uses that 30% to purchase $FARM on the open market.
Till now, Harvest was purchasing $FARM on Uniswap as it had the deepest $FARM liquidity pool. With Bancor’s Community effort (1, 2), Bancor’s $FARM / $BNT pool has become the deepest one, making it economically attractive for Harvest to switch over its buyback mechanism.
Harvest purchases $FARM from the open market, with trades frequently happening throughout the day.
Head over to the bottom of the farmdashboard.xyz to see all on-chain trades involving $FARM.
Buybacks on Uniswap have been marked by the 🚜 icon so far and in a few days, this tracker will also show buybacks on Bancor marked with that icon.
We are excited to see Bancor DAO succeeding on this mission.
It’s the beauty of decentralized ecosystems where people from across the world can come together, vote on something that brings prosperity to their ecosystem, and make it happen. 👏
Bancor is a decentralized liquidity protocol that offers a simple and safe way to trade crypto and earn yield on your favorite tokens. The protocol is made up of a series of smart contracts designed to pool liquidity and perform automated trades with no counter-party. Users stake their tokens in exchange for trading fees, liquidity mining rewards, and voting rights in the Bancor DAO.
Unique to Bancor is the ability for users to stake and maintain single-asset exposure and with protection against impermanent loss. Bancor generates millions in transaction fees for its liquidity providers and BNT holders per month across 1000s of tokens including ETH, WBTC, LINK, MATIC, FARM & more.
About Harvest Finance
Harvest is an asset management platform that maximizes yield for assets deposited by users. Harvest reduces gas costs and develops cutting-edge strategies to become the stop-shop of yield farming in DeFi.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information may be accurate. Consult a financial professional before making any financial decisions.