Harvest Finance is an asset management platform which seeks to maximize yield for assets deposited into Harvest vaults.
The protocols vaults execute various yield farming strategies; the profits from these strategies are split between liquidity providers and rewarding users staked in their profit sharing pool.
As yield farming became more prevalent and lucrative in the summer of 2020, decentralized finance (DeFi) users on Ethereum needed to complete increasingly complex and gas intensive operations in order to achieve the promised high APY's associated with these strategies.
Harvest Finance was created so that users could achieve high yields while saving on gas costs.
By pooling deposited assets into strategized vaults & harvesting yield at opportune times, Harvest Finance allows users to simply deposit their asset while the protocol performs the necessary transactions to maximize yields.
Once a user deposits tokens in a vault, they'll receive an fToken ERC-20 token. For example, if a user deposits into the USDC vault then they'd receive fUSDC.
This fToken token represents a depositors share of the associated vault. Deposits can be withdrawn at any point & as deposits are withdrawn the corresponding amount of fToken tokens will be burned.
