The job of yield farming has always been demanding. To be a good farmer and not be abandoned by the market, you need to spend 24/7 monitoring your positions, assessing returns with high volatility, redistributing the funds to different protocols, and you always need to keep up with the newest farming protocol and have to be crystal clear where the best returns are at any time.
Not to mention the cost and time you spent on gas, cross-chain bridging, researching, etc., you must operate and optimize your strategy regularly to maximize your return.
That’s just for experienced DeFi users. As a newbie, you have to learn how to transfer your money from centralized exchanges and create LPs and deposit.
DeFi, developed so far, still has a steep learning curve and a high technical barrier. Imagine a group of professional people operating for you behind the scenes, doing all the research and conducting execution for you.
#FAAS may be a new choice for you.
What is FAAS?
FAAS, known as Farming as a service is a recently coined term within the past month that has gained a lot of traction on #CT.
Simply speaking, users can benefit and participate in yield farming protocols indirectly by getting paid a dividend for owning #FAAS-related crypto tokens.
The best and most experienced farmer will use the funds in the protocol treasury to gain yield in various DeFi protocols, and token holders have the right to share the revenue generated during those executions.
It allows people who don’t know how to trade and invest get exposure to the latest and potentially promising DeFi protocols.
“Farming as a Service is about to take off. Allowing the averse investor to participate in some of the deep-end DeFi stuff is gonna be an absolute game changer…
Earn yield from Lockup projects by just holding the FaaS token?! No lockup needed. Boom.”Quote by famous DeFi Farmer @rektfoodfarmer
Sounds really like a hype, right?Many people even refer #FAAS to DeFi 3.0. After all, it is nice to leave your money to a group of brainy people, and all you need to do is wait to earn a decent return.
#FAAS seems like a good choice when the crypto bull market slows down, and the bear market comes. Not everyone can bear the high risk of token price volatility. And earning stable interests works for everyone and every type of market.
Farming as a service may make it easier for everyone to be able to start earning passive income through DeFi, without the complexities.
#FAAS Protocols landscape
Multichain - Captial is the first mover in the FAAS field.According to the article published on Medium,“You buy on Ethereum, we farm on multiple chains and return the profits to $MCC holders.”
Similarly, for Reimagined Finance which is another #FAAS protocol, It is written on their website “You buy $REFI, we use it to farm DeFi projects in multiple chains. We return the profits seamlessly back to you.”
So where does the money in the treasury come from?
The launch of the protocol tokens might contribute to the treasury at the start stage.
Apart from that, normally,#FAAS tokens have tax when users buy or sell, and some percentage of tax will go to the holders via reflections or go to the treasury wallet for yield farming cross chains or cross various protocols and even LP tax.
To see a more general landscape of all the FAAS protocols and their tokens, we have
- MultichainCapital - $MCC - $145M - 21.3K holders
- Reinmagined Finance - $REFI - $79M - 2.8K holders
- Alphabraincap-$ALPHA - $13M - 907 holders
Just like the boom of OHM forks recently, we can also see a trend of #FAAS projects are growing these days.
What makes a #FASS protocol great？
For the FASS protocol, how it conducts yield farming is one key factor determining if it’s sustainable and successful long-term.
Before investing in FASS protocols, ask yourself several questions.
- Are the lead farmers of the protocol famous and experienced?
- Do they adopt a low, medium, or even high-risk strategy?
- Does their strategy match your investment principal?
- What is the ROI they have achieved so far?
- Are they transparent about their treasury and farming activities?
Of course apart from those questions, you also need to research on other underlying fundamentals such as the developing team, community ,roadmap etc.