Harvest Finance developers refuse to give up on the centralized control concerning the $1 billion locked on its decentralized finance (DeFi) ecosystem. This is prior to the possible exploited funds being unveiled.
On Harvest Finance’s defense,
No one can spend 1B, it’s not useful, it’s much better to have a project where people can benefit from it.
It would be much better if those people just had a good time, get some APYs, don’t bother us too much, and we just do our work.
— Harvest Finance (@harvest_finance) October 24, 2020
In addition, Harvest Finance increased its DeFi rank as it acquired more than $1 billion in total value locked (TVL). This happened despite the warning signals in the audit reports. More so, Harvest Finance is a known DeFi yield aggregator.
TVL Slightly Dipped
Harvest Finance implements investment strategies on DeFi projects to gain maximum yields. Its native token FARM, which is a governance token, receives cash flow from the firm’s revenue.
Nevertheless, the TVL of the aggregator has dipped slightly. Accordingly, with the profitable returns of over 200% on FARM tokens, communication on Discord and Twitter have managed to keep most users. Based on CoinGecko, FARM’s price is at $101 with a 24-hour trading volume of over $20 million, at the time of writing.
DeFi investor Tetranode, who invested 1% in Harvest, has also requested to include a 12-hour lock dashboard. Hence, users would be able to end their positions within the lock-in period if the developers introduce any changes.
Harvest Finance Exploit
Moreover, a possible exploit in Harvest Finance has sent FARM tumbling down by 65% in less than an hour. As per reports, above $25 million in value has been exhausted from Harvest Finance pools and swapped for renBTC (rBTC) by a strange attacker.
On the other hand, other funds were mixed through Tornado Cash, an Ethereum software. Following the attack, investors appear to have taken roughly $350 million from the site. The anonymous Harvest Finance team explained that they are working actively on the issue.
They specifically said that,
We are working actively on the issue of mitigating the economic attack on the Stablecoin and BTC pools. And will update in this thread in realtime as soon as additional details are available.
Furthermore, investment in these projects requires a thorough understanding of the smart contracts that run these decentralized applications (DApps). Though famous influencers have signaled their approval, this should by no means suffice as a good enough reason to invest in a project.