DeFi by Design EP#67: Multichain Yield Optimization with Beefy Finance

Transcript

welcome to d5 by design where we talk all things blockchain and cryptocurrency while striving to educate empower and enrich it's your boy andy and welcome back to the defy slate youtube channel smash the like button on this video that really helps us out and sit back and enjoy the content thank you very much what is going on defy slate fam welcome back to the d5 by design podcast uh super stoked to have we so from beefy finance on the podcast today um and and we're in the midst of some choppy markets but you know builders built that's really why we're here and uh continuing to provide value to the ecosystem overall is beefy finance we're gonna dig into what beefy does how they contribute value and some of the newest

updates that are coming out really um at some of the cutting edge uh technology on in d5 right the beefy is uh a uh their multi-chain optimizer which of course you've heard us uh preach about the multi-chain several instances over here um so you know when when you're profit maximalist you're not really uh specific to one of these chains you're kind of looking to drive the most value possible out of all these chains and beefy helps uh to drive that value so i uh i'm gonna pass it over to wiso for a quick introduction and then we'll dig into everything that beefy has to offer there what's going on wiseau hey how's

it going oh yeah thanks for having me on yeah um so i'm in charge of strategic partnerships i'm also one of the lead devs over at bc finance so been part of the dow since february of 21 so just over a year now and beefy itself is about a year and a half old so one of the og d5 products especially in in the multi-chain world uh since you know we launched when bsc pretty much um i mean immediately when bsc launched to optimize all those farm yields over there so but it's been fun so yeah solid yeah um i mean finance smart chain

had like you know pretty pretty uh immense apys that were going on at one point um and those have tapered off a bit i think kind of as the overall market is is starting to recede you know people are more risk off nowadays uh versus a year or two ago when uh there was a flurry uh of flaming hot ball of money that was flying all over the place and uh the incentives were were super hot and they were they were um and seven incentivizing most of these pool twos just out the wazoo uh with token emissions and and you know farming uh was very profitable um just by by sitting in these pools

usually taking some risk by having exposure to one of those sides of the lp um but then you know ultimately the the emissions would would pay off uh for any decline in in uh price of those assets due to inflation or general generated emissions um so you know optimizers and kind of auto compounders or something that we've seen you know really across a lot of these different chains like it seems like the starter kit to launch an l1 ecosystem at this point is you get your uniswap clone you get your decks you get your lending and borrowing uh ecosystem give it ave or been key on avalanche or you know what have you and then the third and a

little bit less i guess utilized is this auto compounder yield optimizer sort of application that you know we've seen yearn on mainnet some other instances on some other chains um and and beefy is providing that really you know starting from finance but branching into several different chains um could you unpack kind of the the strategy of launching one of these yield optimizers you know you guys were one of the first ones to do it uh what were some of the trials and tribulations of launching that protocol and you know what you've learned over the course of a couple years now of uh of a mainnet uh app in production

yeah so we originally were a fork of urine v1 and so we went over and launched on bsc initially was because of all of the the crazy farming that was kind of going on there so you know pancake swap launched um there was a whole bunch of dexes that were like launching i think venus launches the lending protocol uh and so there's an opportunity there to really maximize the emissions by you know doing the outer compounding so deposit your lp token into uh beefy you know we sell sold the cake for uh more whatever the lp is added liquidity for you and and deposited it back into the farm so creating compound interest and i mean at the time when the yields

were crazy i mean the apis were insane uh and so that really kind of got everything kick-started right on bsc it was really just a project to i think personally you know um the initial developers just wanted to actually just compound for themselves right it's like okay well now we can do this as a service as well and because back in 2020 eth was like super expensive to do anything so there's a lot of like awesome innovation happening um you know comp uh initially launched you know the cop token and incentives for their lending product um you know urine was kind of doing its thing uh uni launched you know the uni token sushi you know did their version and so all of a sudden there's

like all these awesome things happening over on heath but then farming was just like super expensive so you know you wanted to lean on like an optimizer because then you didn't have to pay for all the gas of doing all the manual you know optimizing yourself but then vsc launched right and it was like wow like this unique opportunity to like really kind of take advantage of all this money rushing into you know a cheaper transaction chain and so you know we we developed there and obviously for like i think the better part of the beginning of 2021 um the ecosystem was exploding so there was you know different dexter's popping up there's different protocols we had saw uh algo coins we saw um you know you know we did a lot of like

lending services even like uh services like belts popped up so we were able to optimize their yield so like all of a sudden all these new products were popping up and there was all this opportunity for us to uh you know do our thing on top of those protocols and then you know it went through that cycle of you know boom bust and all of a sudden i think once some of these other uh opportunities these other blockchains started to pop up it was like all of a sudden you see the tbl right starts to shift you know somewhere else so then we saw avalanche launch and like i think we actually launched an avalanche in april of last year and polygon and uh you saw like at least initially there was a you know

a pretty decent size like launch of you know at polygon and there was the whole iron finance thing and we picked up on top of that and then there's like this gigantic uh chasing of these really high yields um over on polygons so uh you know we kept developing as a product and what we realized is that you can't be like you know uh completely dependent on one chain especially if you're going to be in these alt chains right these non-heat chains and you're gonna be a non-east product uh you have to be multi-chain um you saw a lot of products that like built on psc last year had initial success and you know if they if you look at them and they're not a multi-chain product now

um i mean their tvl is like one tenth 120th of where it was and it's really impacted the protocol we made a decision early on uh to be a multi-chain product so you know we launched over on avalanche we launched over on polygon we actually got a whole new user base over there people that weren't on vsc uh and we were able to become like one of the larger you know players in those specific networks then we launched on phantom and we continued our evolution um basically and wherever the opportunity was so these new blockchains that are popping up you know we ended up being part of like the core you know d5 products right so like like you mentioned there's lending there's dexes

and then there's the optimizers right the autocomponders um i think of beefy as like we're a middle layer d5 product and that's what we kind of establish ourselves now so there's like this first layer of like you know you have decentralized exchanges right and you have um blending protocols like compound ave or any sort of other ones that are like producing emissions and so then we built on top of those protocols and now we optimize those yields so you're always earning more whatever you deposit you're getting compound interest and then the best part is you get like this receipt token so we call them loot tokens but it's initial it's essentially your receipt for you know your share of whatever the vault is

well it the receipt token can be essentially interest bearing an interest bearing token and so now we're seeing uh protocols built on top of bus and using our receipt tokens uh for all of these different unique uh opportunities so you know we have a partnership with uh you know a cross-chain partnership with my finance uh or cheetah and so they're using our mood tokens as collateral so now you have like this interest bearing collateral right so you're borrowing at zero percent interest against your interest rate collateral which is sort of like a super paying loan so we're seeing all now these unique uh interactions with um you know our protocol on top of us so when we go and we talk to all these

different networks about you know hey uh you know it doesn't make sense for beefy to get launched there and a lot of them are reaching out to us saying hey we'd like to have you know uh you know beefy building our ecosystem you know really work that kind of like middle layer protocol which is like developing now this like interest bearing product and then now you know others can you know build on top of us and so that's where you start to see really i think like the money legos start coming into play and you know now we're gonna see i think even further along in uh 2022 to 20 you know 2023 as we get this next year there's all these innovations and now people are building on top of everybody else and so you're going to see all these really unique opportunities we've already

actually i think if you really wanted to look at all of the crazy defy opportunities that are possible um look at the stuff that's happening happening over in phantom uh there's just so many opportunities to earn tremendous yields over phantom uh you know the solidly launched was a new product that you know gave us a lot of opportunities and obviously that uh is going through its own issues but uh you know i think that you're seeing a lot of like the you know protocols building on top of each other and being able to do a whole lot of things over in phantom and so we're hoping that as we go to all these different networks all these different blockchains um you know we can be a part of that i guess like building of the different eco

of the ecosystem and having all these interactions all these different protocols to you know one you know build on top of them and be able to optimize the yield but then have people build on top of us and be able to utilize beefy yeah yeah mute the uh yeah the uh the lines between application and protocol are are increasingly blurred you know to me what protocol always meant okay it means that you can build on top and kind of it's a it's kind of at the base of the tech stack and you can build some applications on top but now we have applications that

provide a base layer for other applications to build on top of and like you're saying this this points to the money lego picture as more complete than uh bifurcation between protocols and applications since even an application that might be two or three legos up you know has you know a set of like nubs on top that you can go stack another lego on you know be in an application or some other platform and that that leads to more uh scalability um in terms of vertical integrations horizontal and and so on which is is i mean it's really bullish right for all

the composability that is possible in the ecosystem because we don't really know what applications are possible until the more primitive one gets built and each time you know that one that new one is deployed it opens up a new realm of possibilities for all the different new primitives that could be stacked on top of that of that recently built lego um it's yeah i think composability and scalability are really the uh the takeaways from kind of this this increasingly complex network of applications um that ultimately has more niche use cases and um kind of deeper depths that

someone can dig into and generate generate income and increase their capital efficiency um you you brought up you know a very timely uh issue or you know whatever you want to call it about about andre and the the uh kind of devs leaving and you know even some pretty recent uh applications that they that they built over on phantom but it doesn't seem to have phased uh your your perspective on uh the the yields over at phantom and the the opportunities there you know what what's your overall take on andre and uh his partner leaving the ecosystem you know andre probably just felt what like all of us as developers feel right

you can put a lot of like time and effort into building a product um and people expect it to be like 100 perfect right when you launch it and that's just not i guess fair to the development team we're trying our best to launch uh new innovation and what andre built with zodly was important because it basically decentralized the process of incentivizing liquidity tools so you know like right now if you're a protocol and you want to launch let's say you want to like launch your token on pancake swap right and you want to incentivize that lp you pretty much got to go to a pancake and be like hey how much is it going to cost me and then they can go ahead and you know

set a certain missions aside for you know that specific lp and you know solid we sally was supposed to like you know get rid of that right like basically like it decentralized that process where the voters you know themselves were the the token holders and then you know based upon um you know which lp position you voted on you know you actually earned the trading fees for that uh that gauge and so it was supposed to incentivize people to vote correctly based upon trading volumes and and so it's like it was an experimental piece of software that he you know clearly wrote that it was an experimental piece of software that had issues and i feel like he got so much hate

because it didn't work right you know it was like you know basically hey i don't have to deal with any of this and so i guess that's where as a developer right you kind of feel that sometimes because you're just trying we're trying to build we're trying to create and we think we don't get any leeway you know so it's like okay well things don't work 100 how they're supposed to um you know you hear about it i think you know that gets tiring after a while and i think you kind of get burnt out so i think that's kind of what happened but overall like that phantom ecosystem is still exploding so to say like oh well you know one person leaving really is going to make it a huge difference um it's kind of short-sighted

there's still a lot of things that were developed even before solidly was even announced that it was going to launch um and we're still continuing to to build i mean i i know specifically all of the tests in the phantom ecosystem and they're all really engaged in continuing to build and you know create innovation and more opportunities and i think uh you know all solidly did was really increase attention uh to the ecosystem you saw the tbl i mean skyrocket uh since the announcement of all of that and then you know that was obviously a bunch of protocols were kind of like going in there to like you know vamp the rewards but i in general like a lot of that money that was over on ethereum

you know went to want to go play in the playground that is phantom and so you know that money really hasn't left that money still wants to be there still want to play around with the innovation and i think you know phantom themselves has put a very uh lucrative incentive program for people to build there and there's still going to be people building their um to one you know get the incentives but there's money there there's people that want to to play around in the innovation um so i i think there's still like you know a ton of opportunity in phantom i think the same with you know i think polygons do you know trying to do something similar they're they're doing a tbl based incentive program uh you know avalanche still has its core

builder base so i still think i think there's a lot of opportunities in some of these uh these chains especially with the incentive programs that they're kind of putting up now are there any l ones that are up and coming that have an incentive program that's very lucrative for developers they're all starting to so so what happened was phantom kind of like set the standard right it ended up being like not just lucrative but like super super lucrative uh incentive program so if you can build there and you can grab tbl you're gonna get paid for it uh what what's what they notice i think with all these other um

i mean not even just l ones you know even l twos have noticed is that if you want people to common ecosystem the ecosystem to really kind of thrive you have to incentivize it so people are playing around with a whole different um i guess kit of ideas right so some of it's okay well we'll base the incentives on tvl so like phantom did uh some of them are like basically transaction mining so uh you submit your court contracts and we'll monitor for the amount of transactions and we'll pay you a rate based upon the amount of transactions that your contracts are you know processing and then you know some of them are grant funding which is i think kind of like the past

right it's kind of you know hey here's my idea let's go um write it up and then submit it to a few people who decide whether or not they think the idea is any good and whether they should give you funding which there's a lot of politics in that and so i think you know those who like kind of like traditionally like leaned upon grant funding is like a way to incentivize their new protocols have seen people kind of like shy away from it so i think they needed a more kpi led program in order to really kind of sustain uh like a good ecosystem of new products yeah and ultimately i mean it's a centralization risk right like these

grant programs um there's also um you know the the bureaucracy of getting approved and whatnot and yeah build it and they will come like there's there's no blockers that need to be uh introduced kind of artificially um if the money's there there's incentive structures that are capable through through smart contracts that can be initiated in a decentralized way um which removes a lot of the i think bureaucracy from from several different systems um grant programs being being you know one of the most prominent in d5 um you mentioned

uh kpi driven incentive mechanisms which seem to really generate some more um there's some there's some interesting use cases coming out actually from universal market access uma that are introducing some kpi options tokens which i think will be really interesting for incentives yeah yeah and and if an l1 utilizes those for an incentive structure um that allows you know anyone to uh claim some of the the treasury of an l1 or an l2 like you mentioned um it could really bootstrap an ecosystem and fuel growth yeah which it is i mean super exciting that even

though there's i mean it seems saturated to the gills right like all these l ones all these l but twos and chains incentive structure comes along you know yeah the it the the and correct me if i'm wrong on here because i'm i'm not in the depths as deep as you are in in programming and leading a dev team but it my take is that developers and builders are um just as unsticky as a lot of this liquidity right like we see a lot of mercenary capital flowing around if there isn't better incentives on a different chain the the liquidity will flow there very very quickly

are developers and builders kind of the same way you know if there's an incentive structure that uh is more lucrative to build on a different layer too will you know projects migrate or builders abandon some of their projects and go rebrand on a different chain you know have you had an experience with some of uh some of those shifts in strategy yeah you know what's funny the so beefy beefy is fine like bp is a multi-chain product and we're one of the larger ones so if we build on something we're going to like sustain it so we'll be there trying to continue to build um you know trying to launch new new vaults trying to make new partnerships with projects

but i think that there are like ecosystems that you know they kind of built up and they had maybe a little bit of a run and so you had some developers there that maybe launched a amn or i don't know some other protocol and it's just kind of like now it's kind of flailed out right because it's you know the money's left to run somewhere else and you'll see them go and like probably abandon those protocols and go some and go build somewhere where you know either there's more money so there's more tdl or there's better incentives i think you're going to see even more increasingly is the amount of l1's and l2's that are coming in the next now three months or so four months and uh so it'd be interesting if they

even like are where's this money gonna come from so i think it's important like we're talking to like a lot of these l1 and l2s that are just kind of launching and it you know if you've been in like crypto since like 2017 it's some of these like tokens that you you heard of you just didn't know what they actually did because you maybe just like saw them on like finance or something and like all of a sudden now they're launching as like a layer one or an evm you know version of whatever they were trying to build and uh you know so then they're trying to like okay well now how we're gonna get all this you know tv all over there and some of them just aren't going to succeed because they're all like competing at once and you know they're still obviously the ones that are

existing that are competing and they're still heath so you know where's all this money going to come from and so i think what's important to a lot of these l ones and l twos is to get really brand recognized um protocols to come and build because their feeling is that if they can get a couple legit product protocols if you can get a curve you can get beefy you can get um you know ave to come and build in your in your ecosystem it sort of legitimizes your ecosystem and so we've seen a lot of that is that there's a lot of competitiveness of these different l1's now saying okay well we need these

big name brand name protocols because if we just have a few you know like three native protocols that are building here no one's going to really pay attention to us um so it will be interesting to see how i think over the next few months you know one like some of these already like established um like i mean like moon river right which was a kusama um evm which really was like what i guess like test net for polka dots um you know moonbeam i guess it's assumed that that one's gonna exist on itself and it's going to you know supposed to be its own ecosystem what we've seen is like a lot of the money's left there

and we don't see a whole lot of active development so what's going to re-engage those people to continue to build there and you know what's more engaging to build there or do you want people to build on moonbeam which is actually the polka dot evm or pair chain so um i think you're starting here there's like a lot of these like existing ones that we're going to see okay well if the tbl's sort of kind of left when the developer talents kind of left you know where does that kind of leave them what are they going to do if they've already ran an incentive program how are they going to reincentivize people to to build their is the change is going to kind of you know die out and then you know will that happen with some of these new launches will there be like an initial rush

uh okay well now there's like this money flowing in because there's developers because there's funding for these developers uh to build there um but once like that kind of like initial funding or initial um you know boom kind of like you know shakes out what's gonna happen it's kind of it's the same thing would be a cbs he's kind of going through it right now it's like what do we do how do we get people to come back and build that bsc again um right now it just seems like as a developer it's just so much more exciting to build everywhere else so you know i think they're trying to figure out i think they really but they really launched themselves as a b chain so they're trying to go through like this re-imaging they're trying to do you know a different incentive program

they're trying to re-engage the builders that are inside the ecosystem um but they're i mean they're gonna go they're going through whatever i think a lot of these other chains are going to go through is okay after your initial boom and the money sort of left like what are you going to do how are you going to get that money back so i i i think i think we've seen it already with some we're going to see it you know with the new ones that we're going to see with some that are like currently i guess within their i guess boom cycle right like you know i think phantom did a good job because it created a whole lot of excitement you know avalanche has its own i think kind of like maxi crowd know but what happens if the the money or the developers start leaving

how do you get them back yeah the the chains that have started to build kind of their own maximalist crowd could see a bit more sustainability than you know the ones that were you know really just popped up for another instance of l1 yeah to generate some money velocity generate some flow back and forth and just kick start the cycle one more time kind of like you know throw in the wheel of fortune uh flywheel kind of getting it getting it spinning and ramped up again on another chain with a fresh batch of incentives

we're seeing a lot of that liquidity dry up and migrate back to the chains that have sustainable incentives and i i heard a great analogy in uh lisbon for for eth lisbon and it was uh comparing because the question here is really when these incentives dry up what happens to the liquidity and it it was a comparison to uber eats incentives kind of when uber first started if you referred a friend you could get first it was 15 bucks off your next order and then it was 10 bucks if you referred a friend and it was five bucks and now

there's no incentive everyone knows uber eats everyone's familiar with it if you you know frequently use it it's you get you get what you get um and it does provide a service but there's not an incentive to continue attracting new users to the service and it brings a question of you know it to me does it require new money entering the system to kickstart the flywheel again and and provide a fresh batch of incentives or is there latent value that is

kind of discovered and created and brought brought to the surface that you know enriches a community is able to provide value that wasn't uh tapped into before and doesn't require new money flowing into the system but actually taps into an a previously unknown source of value that again can kick-start the flywheel without um a new entrant and and fresh money into the system yeah i think the incentive piece is something that a lot of these i think networks and protocols have to kind of figure out think about um

pretty much a lot of these decentralized exchanges go through this like initial launch cycle where i mean the apy is like insane right like you like two three weeks you know after launch it's like i think we had something was like a billion percent if you like something like that like it was a couple percent a day yeah everyone's on harvest where that they were compounding like just the numbers wouldn't fit on the screen and then within a week or two it all it dwindles down into you know a thousand percent but it wasn't the 10 trillion that it was previously yeah and so you have like those like you know initial like let's say three or four

weeks that you know liquidity comes and farms it like it's like heavily right and not they're only there really to take it and sell it for whatever they're trying to find basically auto like basically we'll do what we do and and that's why they utilize us a lot is uh you know they just want more with a deposit asset nobody really wants the dexa's governance took it uh and the reason if you like look at all the charts of like dexes and they're just tokens a lot of them especially when they're you know high emissions um you know just keeps going down right um because there's just this you know constant cell pressure so i think a lot of protocols are trying to figure out okay well you know how do we kind of offset this emissions because obviously we want our

token to succeed but if we don't if we like scale back emissions then we lose liquidity we lose tbo and so there's a that that's a growing pain right now i think for a lot of the exchanges a lot of i think protocols right because if you want to incentivize people to use your protocol right now it's you have to have some sort of emissions and people are going to go use their protocols that have like the best emissions so i think we're going to start to see more you know beefy we don't have any emissions we just build on top of other protocols but what we do is we share a lot of we share our earnings right so um

our fee structure is for all of our harvests you know we charge 4.5 fees which is some of the lowest in all the ecosystems um but three percent of those fees of the 4.5 goes to uh like basically an earnings pool so if you have beefy you could stake it and you can earn portion of the protocol earnings um so we're net positive in in earnings you know we have zero emissions and we just distribute all of our earnings to our stakers um i think that a lot of these protocols you know you're going to have to start doing that right it's not going to be like okay well you know protocol just keeps all of the earnings themselves they're going to need to be able to distribute their earnings to incentivize the continued use of the protocol

um and start to offset some of the emissions so i you know then it's like i think you're creating a positive loop in the more you know use of the protocol itself you know the more earnings the protocol is getting the more you can incentivize the liquidity and the protocol um so that's where you have to kind of get into that i think um but these like high emissions where they're just kind of printing something out of like thin air and then uh you know has initial value but as you continue to print it and the supply continues to expand it's like you know it starts to get dumped into the ground and you know then people just don't know how to get out of that that you know basically downward spiral that they're in

but yeah i mean even networks have to figure it out right like you have to how do you got to continue to incentivize your use of your network or people to build on there without you know giving out gigantic grant funding or you know incentives um so how do you do that yeah that's where that's where men are separated from the boys and you have these sustainable projects that are uh net positive in you know if you take your emissions um as an expense and you you take your income uh from the value that's that's generated by the service you can generate you know a cash flow positive type of of uh strategy and

i don't know the percent i'm i'm going like north of like 80 or 90 percent on the ones that are that are not cash flow positive um since yeah yeah even though 95 of these projects are in like heavy emissions tons of inflation and not generating uh real value from their service it's all the staking revenue from from those emissions and it's a it's a it's a consequence of the times i guess in a sense but but like we're starting to see competition as a as a part of the ecosystems primarily between layer ones at the moment but as these layer well

you know right now we're seeing layer one start to compete with each other in terms of tvl and if we dig a bit deeper into each of those these uh layer one and protocol level uh ecosystems the the applications are starting to battle for tvl as well kind of in inter chain um you know initially it was okay uniswap and sushi swap and you know when sushi swap launch you had the the max mass exodus over there as a result of the incentive programs but ultimately it was um like a new brand on the scene that segmented from uniswap um and also started to go multi-chain and

compete with the native applications that you described and it was something that we we kind of saw early on um is the the dichotomy between uh a reputable brand that legitimacy legitimized itself probably on mainnet and then started to go multi-chain versus these native applications that were born on an evm compatible not not a main net chain and initially it was like oh this new l1 you know it's it's quick it's cheap um it's going to be around forever so this application is going to do great and it's going to be sustainable but then

you have all these layer ones that start to pop up they all solve the same problem and provide the same level of scalability and those native applications didn't didn't have any merit anymore once the brand recognized applications went multi-chain sushi swaps on every chain um we we're now even seeing uniswap on polygon which i haven't looked too deep into the analytics but i imagine a bunch of quick swap liquidity you know hopped off went over to uniswap and and probably the same for other other decentralized exchanges on polygon and the point being here you know we're kind of seeing a consolidation in you know all of these protocols that were able to

kick-start their a flywheel of their own through emissions are you know kind of slowly drying up when the the the tvl isn't isn't ballooning as a result of a bull market so i think the the choppy markets could could provide um kind of a breather for the ecosystem the legitimate projects are going to continue to provide their real value and have a cash flow positive ecosystem that continues to evolve and and probably enrich their token holders but these native applications i think avalanche is kind of a uh uh you know

story of its own like they they do have like a bit of a maximalist kind of audience and community but all of these other layer ones and and ecosystems that don't have the stickiness that avalanche or mainnet or polygon do could see their native applications start to dry up when we have you know legitimate and i say legitimate but really it's the cash flow positive applications that are starting to go multi-chain and capture tvl from from those native applications yeah i mean the uh you know we actually launched it since we launched on bsc we're like not immediate we're actually not on the

mainnet which is rarity right because we're one of the larger tdl protocols we have over a billion uh tbl and we're across the 14 different chains but we're not on east so that like initially led to i guess a little bit of uh something overcome right like not being a mainnet protocol and then having to like legitimize yourself on all these different networks and so i mean we've been able to do that we've been around for a year and a half so it's a lot easier but i mean you're right like a lot of these like the ones that launched on let's say polygon or uh anywhere avalanche phantom you know some of them are just like

forks they're just uh you know maybe touched up the ui have a different you know uh theme but the base contracts and everything are just like you know forks of somebody else's contracts so there's not really any innovation going on there so you know initially they filled the void and the void was hey there needs to be some sort of decentralized exchange or um a lending protocol on this network and you know obvi's not there you know yourself's not there suicide's not there um so you know we'll build that void but you can't just you can start it as a fork and you should like i mean like a lot of us did right like you know bp was initially a fork but we've evolved and we continue to innovate

we have to find new ways to you know create revenue we have to um be able to build on top of all sorts of protocols and create partnerships with um you know people to utilize the bp platform even more uh i i think you see a lot of these protocols that launched as forks and you know like maybe some uh ui enhancements but if they're not really innovating and they're not building anything additional then somebody else is going to come and take that tv out right there has to be a reason to utilize your product over somebody else's um you know we we actually created uh a new version of our ui and what we're really trying to do is uh make it easier for retail investors

to utilize d5 so we want to be able to give out as much information as possible we have on our new ui we have historical apys so if you're going to invest in a vault uh it's not just coming up and seeing the number okay well this is you know the current apy that is you can actually go and look at the chart of historically how the volts is performed over the course of like let's say a month or even a year depending on the length of the farm uh you can see the historical tbl that'll let you know what the exact strategy is that we're utilizing in order to produce the yields gives you a little bit of information on each of the different tokens um so we're trying to give a lot of like a lot more information right so you can make it a more informed investment as an

investor not only as a maybe like newcomer to d5 but even as an advanced user you don't have to go leave somewhere else to do your research it's all right there you know we're working with protocols to utilize our stuff like i said it's collateral we have a new a couple new other use cases coming that are going to be kind of fun there for some traditional finance um products that are not going to be able to utilize to build on top of beefy um we're working on integrations to basically do fiat to like vault um in one transaction so you can go from you know your dollars to deposit it in the curve vault on beefy you know with one click uh so we're continuing to try to find

ways to make it one easier to continue continue to innovate we just released our um beefy phantom over on phantom so what it is is uh we we purchased a validator and we continue to run a validator we built a vault that basically perpetually locks and delegates phantom to our validator to earn the maximum validator rewards and then distributes those to the people who hold beefy phantom so that's a consistent stream of revenue one we get the revenue from the delegations to a validator um but also we can produce not the highest like basically return on phantom um so we're continuing to build new products and try to find new ways to

generate yields you know beyond just farming you know high or you know high interest emissions tokens because eventually those are all dry up right um so obviously we'll act on opportunities and we've partnered with hundreds and of protocols to be able to uh you know help you know drive tdl to the platform and optimize the yield but we're also finding new ways to figure out how we're going to generate yield how are we going to make it easier for users how are we going to continue to to give opportunities to utilize the pc application even more for other protocols um and how do we continue to interact maybe you know how can we you know interact with maybe you know other apps like you know how can we get integrated into

into an app to make it easy so that you can just basically interact with pv on an app so um you know that's what we continue we're looking at like how do we continue to move forward so all these other protocols that have just kind of like forked something and built something to fill a temporary void if they're not going to continue to innovate i mean that's where you're going to kind of see i think the fallout and it's gonna eventually just dry up yeah and for anyone who might be uh dozing off towards the end of this um we so just dropped a uh an alpha tip by uh phantom beefy uh for the highest uh rewards on on on ftm because the chain is not dead uh yeah and um i think it's take v phantom so it's be ftm

uh right now you can earn like 30 interest and you can get paid in phantom if you want or you can get an auto compounded into more be phantom uh so yeah that just launched like a week ago so it's been uh pretty i think we have like 7 million phantom locked up in it now nice yeah yeah that is uh is a massive use case for uh for interest bearing you know you're using the collateral as a as kind of stake uh validator collateral um but that that can be transformed into uh you know collateral for several different use cases as evident by by my finance and their their vaults over there and self repaying loans man you

dropped tons of alpha for the audience man like go guys go get yourself a spell for paying loan on my all right zero percent borrow interest and it'll pay itself off because it's interest bearing collateral go get yourself some beefy phantom get some 30 35 apys on on ftm and you know check out the new ui from from beefy because there's confluence that you can identify when uh the historical performance of a vault is increasing and the tvl for you know one reason or another is decreasing you know you would actually you would be getting more of the pool as you compounded if liquidity is leaving and the the pool you can you know identify the performance and and confirm that

it's growing and it's it's continuously doing well um so yeah tons of alpha men and i i know we're we're uh kind of closing out here running close on time but i you know i wasn't we weren't gonna have this podcast and i wasn't gonna bring up this question um we were gonna have this podcast without me bringing up this question uh my final question is is beefy where did the name come from man that's actually i have no idea so so i i i came out as like an investor um in like november so beefy launched in october of 2020.

i came out and like i found it because i was playing around at bsc and uh i was like oh this is this is amazing look at these fields and so i would you know i was invested in a community member for a few months and then um i realized you can actually if you're a developer or you know how to develop it at least a little bit um you can launch strategies and then earn a portion of the harvest income as a strategist at beefy and anybody can do it you know um we allow we're completely open source we're an open contributor dow so we're completely actually run by the dows the founders actually aren't even part of beefy anymore um so where anybody can come in and kind of contribute

and as a strategist you can you know come in deploy a strategy and then you earn point five percent of all the harvest yield uh for the life of like you know however the vault uh exists and so i was like oh that's i gotta do a couple hours of work and then like you know launch a vault and i get this like recurring income like how cool is that right so i i started like watching volts and fast track to retirement yeah i mean like i'm just like hey this is like the coolest thing like i can just like you know and then you get addicted to it you're like okay well i got like you know you start seeing the flows coming in like you're like okay now i watched i spent a day like launching some vaults and now all of a sudden i see this

consistent like income coming in and so um then you're like i just gotta do more and then you like you know it gets you to like you know keep keep going and keep launching vaults and so um i did that and then i became like an active developer and was like helping really my backgrounds in business so uh i was able to like basically you know how so that i still do development work and still help beefy in that regard but uh really take on like the leadership on the business strategic partnership side and so uh when the founding team sort of like left and like left it all over to the contributors to basically take over the whole initial thought of beefy was to let it be completely run by the dow

um we had this transition phase and now we have like about 15 core contributors that are you know consistently running beefy from anything from you know marketing to develop to strategic partnerships to um analytics um devops um graphic design we have people that doing it like everything so um it's kind of cool it's like we're like one of the i think few product projects that like ended up actually being a true dao you know it's it's interesting that um beefy doesn't have anybody that's currently a contributor that has any team share so we're all actively pushing the product forward and we get like reoccurring uh contributor like i guess essentially salaries

um but you know none of us are like you know it's not our own native product it's uh just something that we believe in and we want to continue to push forward and so from that i never really got a chance to ask the founders of why they named it beefy um but but um but yeah that's that's the history on it yeah solid man yeah it taps into uh the meme culture of uh of crypto as a whole and finance in particular so uh yeah uh for everyone still listening hop over to beefy check out the new ui all the uh auto compounding on on whatever chain uh you you choose all of them um and get all of the chains yeah check them out on

all the chains and uh get yourself some mood tokens for the memes perfect yeah cool man it was uh it was great having you on uh super great combo and and uh learned a lot about about beefy and kind of how these layer one and layer two ecosystems are our jump started um it was a blast man thanks for thanks for hopping on thanks for having me