Beefy — Frequently Asked Questions

Beefy is a decentralized, multichain yield optimizer that allows users to earn compound interest on their crypto holdings automatically. The platform aggregates liquidity from various decentralized exchanges (DEXes) and lending protocols, then uses smart contracts to auto-compound the rewards back into your position.

When you deposit funds into a Beefy vault, the protocol continuously harvests any earned tokens and reinvests them on your behalf. This means your principal grows over time without you needing to manually claim and reinvest rewards. The process runs 24/7 and is entirely non-custodial — you retain full ownership of your assets at all times.

Beefy is truly multichain, operating on more than 25 blockchains including:

• Arbitrum, Optimism, and Base (Ethereum Layer 2s)
• BNB Chain (formerly Binance Smart Chain)
• Polygon, Avalanche, and Fantom
• HyperEVM, Sonic, and other emerging networks
• Ethereum mainnet and many more

New chains are added regularly as the DeFi ecosystem expands. You can filter vaults by network directly on the Beefy app to find opportunities on your preferred chain.

Getting started with Beefy is straightforward:

• Connect your wallet — Use MetaMask, WalletConnect, or any compatible Web3 wallet.
• Switch to the right network — Select the blockchain where you want to invest.
• Browse vaults — Filter by chain, asset type, or APY to find the best opportunity.
• Deposit assets — Approve the token and deposit into your chosen vault.
• Earn automatically — Beefy handles compounding. You can withdraw at any time.

There are no lock-up periods. You can deposit and withdraw freely at any time, though gas fees apply on each transaction.

Beefy offers several distinct vault categories to suit different risk appetites and investment goals:

• Single-asset vaults — Deposit one token and earn yield without impermanent loss exposure (e.g., staking BIFI).
• LP (Liquidity Provider) vaults — Provide liquidity to a DEX pair and auto-compound the trading fees and farming rewards.
• CLM (Concentrated Liquidity Manager) vaults — Optimized vaults for Uniswap V3-style concentrated liquidity positions, automatically managing price ranges.
• Stable vaults — Pairs or single stablecoins (USDC, USDT, DAI) offering lower risk, consistent yields.
• Blue-chip vaults — Vaults focused on established assets like ETH, BTC, and BNB.

Each vault page displays detailed information including APY, TVL, daily yield, and the underlying strategy so you can make informed decisions.

APY stands for Annual Percentage Yield. Unlike APR (Annual Percentage Rate), APY takes into account the effect of compound interest — meaning your earnings are reinvested and generate additional returns over time.

On Beefy, the displayed APY reflects the rate you would earn if compounding continued at the current pace for a full year. It is calculated based on:

• The base yield provided by the underlying protocol (e.g., trading fees, lending rates)
• Farming rewards distributed in the platform's native token
• The compounding frequency (more frequent = higher effective APY)

You can toggle between 30-Day APY (based on historical performance over the last month) and real-time estimates. APY values fluctuate based on market conditions, TVL in the vault, and reward emissions — past performance does not guarantee future returns.

Beefy charges a performance fee, not a deposit or withdrawal fee. This means you are only charged on the profits generated — never on your principal.

The standard fee structure includes:

• Performance fee (~9.5%) — Taken from each harvest. Split between the treasury, BIFI stakers, and the strategy caller (the "harvester" node that triggers compounding).
• No deposit fee — You deposit and withdraw 100% of your asset amounts freely.
• No withdrawal fee — On most vaults, there is no fee for withdrawing funds.

The displayed APY on the Beefy app is already net of all platform fees, so what you see is what you earn. Gas costs for transactions are paid separately by you at the time of deposit or withdrawal.

BIFI is the native governance and revenue-sharing token of the Beefy protocol. With a fixed supply of 80,000 tokens, BIFI is designed to be scarce and deflationary over time through buybacks.

Holding BIFI grants you:

• Revenue sharing — Stake BIFI as mooBIFI to receive a share of Beefy's protocol fees, paid in ETH (or the native chain token).
• Governance rights — Participate in on-chain votes that shape the direction of the protocol, including new chains, fee structures, and strategy approvals.
• Vault access — Use BIFI vaults to auto-compound your BIFI holdings and grow your governance stake.

BIFI is available on multiple chains via bridging, and mooBIFI (staked BIFI) represents a growing share of the revenue generated by the entire Beefy ecosystem.

Beefy is governed by its community through a decentralized autonomous organization (DAO) model. BIFI token holders can submit and vote on proposals that affect the protocol.

The governance process typically involves:

• Community discussion in Discord and the governance forum
• Formal proposal submission via Snapshot (off-chain voting)
• On-chain execution of approved changes

Proposals can cover anything from adding support for a new blockchain, adjusting fee parameters, approving new yield strategies, or allocating treasury funds. Beefy is committed to progressive decentralization — giving more control to the community over time.

Beefy takes security extremely seriously. The protocol has been operating since 2020 and has undergone multiple third-party audits. Key security features include:

• Smart contract audits — All strategies are reviewed by reputable security firms before deployment.
• Time-lock contracts — Protocol changes require a waiting period before taking effect, giving the community time to react.
• Non-custodial design — Beefy never holds your assets. Funds are stored in on-chain vaults that only you can withdraw from.
• Safety scores — Each vault displays a Beefy Safety Score evaluating smart contract risk, strategy complexity, and underlying protocol risk.
• Bug bounty program — Responsible disclosure is rewarded to identify and patch vulnerabilities proactively.

While Beefy implements robust safeguards, all DeFi protocols carry inherent risks including smart contract vulnerabilities, oracle manipulation, and market volatility. Always invest only what you can afford to lose and DYOR (Do Your Own Research).

Impermanent loss (IL) occurs when you provide liquidity to an AMM (Automated Market Maker) pool and the price ratio of the two assets in the pair changes compared to when you deposited. The greater the divergence, the more IL you experience relative to simply holding the assets.

Beefy does not eliminate impermanent loss, but it helps in several ways:

• Auto-compounding yields — By reinvesting rewards continuously, Beefy helps offset IL with accumulated yield over time.
• Vault diversification — Single-asset vaults and stablecoin pairs have zero or minimal IL exposure.
• CLM vaults — Concentrated liquidity strategies can be tuned to manage range and reduce IL in certain market conditions.
• Transparency — Each vault page clearly indicates whether IL risk applies, helping you make informed decisions.

The compounding frequency depends on the specific vault and current gas costs on the network. Beefy uses an automated system that triggers a "harvest" when the gas cost of compounding is justified by the rewards available — typically several times per day on low-fee chains, and less frequently on higher-fee networks like Ethereum mainnet.

On chains like BNB Chain, Polygon, or Arbitrum, vaults may compound dozens of times per day, significantly boosting effective APY. The app displays a "Last Harvest" timestamp on each vault so you can monitor compounding activity. Higher TVL in a vault generally leads to more frequent harvesting because the reward threshold is reached sooner.

Beefy offers a built-in Bridge feature in the app to help you move assets between supported blockchains easily. You can access it directly from the top navigation bar.

The Beefy Bridge aggregates multiple cross-chain bridges to find the best rate and lowest fees for your transfer. Supported bridges include popular protocols like Stargate, Across, and others. Simply:

• Click "Bridge" in the Beefy navigation
• Select the source and destination networks
• Choose the token and amount to bridge
• Confirm the transaction in your wallet

Bridge transactions take anywhere from a few seconds to several minutes depending on the networks involved. Always ensure you have native tokens (e.g., ETH, BNB) on both chains to cover gas fees.

Beefy supports a wide range of Web3 wallets. Compatible options include:

• Browser extension wallets — MetaMask, Rabby, Brave Wallet
• WalletConnect — Connects to 300+ mobile and desktop wallets including Trust Wallet, Rainbow, Argent, and more
• Hardware wallets — Ledger and Trezor (via MetaMask or direct connection)
• Coinbase Wallet — Both extension and mobile app
• Safe (Gnosis Safe) — For multisig and institutional users

Simply click "Connect Wallet" in the Beefy app and select your preferred wallet to get started. Make sure your wallet is configured for the correct blockchain network before interacting with vaults.

Failed transactions are usually caused by one of the following issues:

• Insufficient gas — Increase the gas limit in your wallet settings and retry.
• Low slippage tolerance — If swapping assets, increase slippage to 1–2% for volatile pairs.
• Insufficient native token for gas — Ensure you have enough ETH, BNB, MATIC, etc. to pay for the transaction.
• Approval not granted — You may need to approve the token first before depositing. Check if the approval transaction succeeded.
• Network congestion — Try again with a higher gas price during peak times.

If the issue persists, join the Beefy community on Telegram or Discord for live support from the community and team.

The Beefy community is active and helpful. Here are the best places to get support:

• Documentation — docs.beefy.finance covers everything from beginner guides to advanced strategy mechanics.
• Telegram — t.me/beefyfinance for community chat and quick questions.
• Discord — beefy.finance/discord for in-depth discussion, governance, and developer channels.
• Twitter/X — @beefyfinance for announcements and updates.
• GitHub — github.com/beefyfinance for open-source code, bug reports, and audits.

For security vulnerabilities, please use responsible disclosure via the official bug bounty program rather than public channels. Beefy takes all security reports seriously and rewards valid findings.