What is Beefy?

Beefy is a yield optimization protocol that builds on existing DeFi protocols such as Silo to maximize rewards. This is via auto-compounding where external rewards are converted back to the principal token, increasing the user’s yield exposure.

Beefy’s vaults can be found here (make sure to search for ‘Silo’ to find our markets).

How does Beefy work?

Silo provides incentives to users in the form of token rewards that must be manually claimed. This can be an inconvenient and gas-intensive process for most users.

When you deposit in a Silo Beefy vault, your deposit routes to Silo via the Beefy contracts. Beefy will automatically claim rewards and convert it back to the original token which is then redeposited.

This does two things:

  1. Removes the need for users to manually claim rewards

  2. Maximizes capital efficiency as you constantly grow your deposit size

What are the risks of using Beefy?

The primary risk of using Beefy is smart contract risk from Beefy Vaults as well as the underlying yield-bearing protocol (that’s us!). Beefy has had multiple audits including from OpenZeppelin and Certik which can be viewed here.

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