Hello, —I’m Redmption, a Community Manager with Harvest Finance—
Today, I’d like to propose the addition of $FARM as collateral on Aave. FARM is a profit share and governance token for Harvest Finance, an automated yield farming platform, which has been delivering incredible value to DeFi farmers for 15 weeks, recently exceeding $590M in deposits and currently 2nd ranked in Assets on DeFi Pulse.
With an AUM now exceeding yEarn’s, we believe the addition of $FARM as collateral on Aave would sustain an attractive market. It would also enable additional strategies for FARM holders that could eventually be harnessed in a FARM vault that employs rehypothecation strategies like lending on Aave to generate yield.
Profit Share - The $FARM token has actual value in receiving 30% of all profits generated by liquidity providers at Harvest Finance. By providing cash flow even in down markets at a P/E ratio of less than 3, users see Harvest Finance and $FARM as a haven against bear markets.
Harvest has the technical expertise to deploy a FARM vault that could harness Aave’s credit delegation to leverage staked FARM for additional yields.
Harvest is a community enhanced project, with multiple initiatives to fund the Ethereum ecosystem via grants, and through strategic partnerships with newly forming projects like Perp.fi and Benchmark. The FARM token is also utilized for voting on initiatives that impact the platform and community.
Aave users love Harvest Finance! Harvest Finance accepts single currency deposits such as DAI, USDC and wBTC. With such low rates offered by Aave, blockchain analytics show users leverage their assets at Aave for stable coins to deposit at Harvest Finance. Those users in turn gain $FARM rewards, which if approved as collateral could then be deposited back at Aave for leverage.
Harvest Finance is entering its 15th week of production, and each week has implemented changes that bring additional integrity and value to the platform such as a supply burn and emissions reduction, multiple security audits, implementation of the 12 hour strategy timelock, and being the first automated yield farm to deploy UNI and IDLE strategies. I believe a quality project such as Harvest Finance which combines quality development with deep community integration is an excellent candidate for the Aave platform.