Saturday, July 30, 2022 – As part of a restructuring initiative, The Beefy team will alter its top 20 - 50 performing Vaults’ fee structure on the Multichain Yield Optimizer Dapp. The platform will introduce a new 9.5% performance fee within two weeks on users’ accrued gains while optimizing their deposits.
As with most major operative Beefy decisions, the change was planned and coordinated through the community run Beefy DAO. Several weeks of deliberation took place to establish suitable and fair guidelines in the [BIP-45] proposal. All $BIFI holders were then eligible to take part in the decentralized decision-making process. With the implementation of the proposal, the fee restructure showcases the Cowmoonity’s desire for protocol stability and will to build for longevity.
Previously, the majority of the performance fee was distributed to $BIFI stakers in the $BIFI Maxi Vault and $BIFI Earnings pool. The new split and raise will, however, give the treasury a larger share of the fee and to strengthen the sustainability of the platform. This fact is key to Beefy having the resources needed to grow and fund its development and marketing activities.
An updated 63/36 fee-batch split of the 9.5% performance fee will also ensure no noticeable impact for $BIFI stakers. This simply means that 64% of a Vault’s revenue will go to Beefy’s treasury and 36% to $BIFI stakers (the fee-batch split).
Apart from applying to the top 20 - 50 Vaults, all new Vaults will follow the updated structure. Older Vaults not in these categories will maintain their legacy rate with a 4.5% fee.
“The new Vault fee structure reflects our improved understanding of Beefy’s revenue model,” notes Weso, Beefy's Lead Developer and Strategic Partnership Coordinator.
“With this new split, all Vaults now generate more revenue to the treasury and help improve platform sustainability in tough market conditions.”
The process of upgrading Vaults to the new fee structure is now taking place. The fee increase is set to phase in over the course of the next two weeks.
Beefy is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings.
Through a set of investment strategies secured and enforced by smart contracts, Beefy automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.
The main product offered by Beefy is its 'Vaults' in which you stake your crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite what the name 'Vault' suggests, your funds are never locked in any vault on Beefy: you can always withdraw at any moment in time.