Harvest Finance Developers Adamant on Keeping the $1 Billion Project Centralized

Key Takeaways

  • Harvest Finance developers responded to centralization doubts highlighted in their audit reports.
  • The founders took a stubborn stance for holding the admin key to the project.
  • The “Time lock” period for implementing changes on the project is the only safeguard for investors at the moment.

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“No one can spend 1B, it’s not useful, it’s much better to have a project where people can benefit from it,” reads the only explanation that Harvest Finance developers offered to investors. 

Harvest Finance’s Centralization Risks 

Within a fortnight of their launch, Harvest Finance quickly rose the DeFi ranks acquiring more than $1 billion in total value locked (TVL). This is despite the warning signals in their audit reports. 

Harvest Finance is a DeFi yield aggregator similar to yEarn Finance and Rari Capital. Yield aggregators implement investment strategies on DeFi projects to gain maximum yields. Like others, Harvest also comes with FARM governance tokens, which also receive cashflow from the platform’s revenue. This revenue is currently set at 30% of the profit.

Highlighted by independent DeFi researcher Chris Blec, Harvest Finance has one admin key for making changes to the smart contract. Essentially, the owner of this key can perform a variety of changes, from strategies to orchestrating a rug pull. 

SIMETRI gains of 484%

The FARM governance community is powerless in the current arrangement.

DeFi projects like yEarn, SushiSwap, Serum, and so on have entrusted their multisig keys to DeFi and crypto community leaders. However, Harvest Finance developers refuse “to spend time chasing Defi influencers around to approve transactions.”

The TVL of the aggregator has dipped slightly after Chris Blec’s revelation. However, the lucrative returns of over 200% on Farm tokens and communication on Twitter and Discord have managed to keep most users from jumping ship.

Harvest Finance TVL
Harvest Finance TVL. Source: DeFiPulse

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