What is Farming-as-a-Service and which FaaS projects are worth looking into?

DeFi stands for Decentralized Finance and is an emerging financial technology. This system and the money within it is not controlled by banks or any other institutions. Within the general space of DeFi there are constantly coming up innovations and new sectors. There are DeFi protocols that identify themselves as DeFi-as-a-Service (DaaS), Nodes-as-a-Service (NaaS) or Farming-as-a-Service (FaaS).

Farming as a Service (FaaS)

Farming-as-a-Service allows investors to buy a token that enables them to take part in yield generating strategies. While some of these yield generating strategies may seem not too complicated for experienced DeFi investors there still is a rather high barrier-to-enter for people new to this space. The holders of FaaS tokens are rewarded with dividends.

When buying in to a project that offers Farming-as-a-Service investors do not need the knowledge of highly complicated yield farming strategies. Furthermore, buyers get spared of the (high) gas fees that may occur when somebody does yield farming on their own.

Such FaaS projects maintain a so called Treasury. This Treasury is used to deploy funds into DeFi protocols to farm yields and get returns that get distributed to the investors in form of dividends. The Treasury grows every time someone buys or sells the native token of the FaaS project. This is possible with implemented 'taxes' that are written into the smart contract.

The vital point of a FaaS project comes down to the designated 'farmers' which are ultimately deploying all kind of yield farming strategies for their investors. That is why it is even more important for investors to do their due diligence on the executing team members. The 'farmers' need to be well experienced professionals within this space that optimally have a good reputation and high skillset to operate within this space of DeFi.

It is not far-fetched to compare FaaS projects to traditional hedge funds. Both of them deploy the funds of their investors and promise to achieve the best possible outcome regarding profits - no matter the market conditions.

Interesting FaaS projects

The following projects are not listed in any specific order.  

Reimagined Finance ($REFI)

Reimagined Finance (ReFi) is a Farming-as-a-Service protocol deployed on Ethereum and the Binance Smart Chain.

Numbers (as of Feb. 2022):

• market cap: ~ $25 million
• holders: ~ 3,300
• rewards distributed: ~ 1,582 ETH

Foodfarmer Finance ($FFF)

Foodfarmer Finance (FFF) is a Farming-as-a-Service protocol deployed on Ethereum and the Fantom network.

Numbers (as of Feb. 2022):

• market cap: ~ $5 million
• holders: ~ 1,430

Multi-Chain Capital ($MCC)

Multi-Chain Capital (MCC) is a Farming-as-a-Service protocol deployed on Ethereum and the Binance Smart Chain. Multi-Chain Capital also offers investors to create Nodes.

Numbers (as of Feb. 2022):

• market cap: ~ $36 million
• holders: ~ 26,620

Future of Farming-as-a-Service

We find the FaaS sector really interesting and innovative. There are constantly coming up new projects within this space. That is why you should always make sure to do your own due diligence before investing in already existing and also upcoming projects.

How do you buy ETH, BNB or FTM?

One of the easiest ways of buying ETH, BNB or FTM is by using exchanges like Kucoin, Coinbase or Binance.

If you do not want to use a centralized exchange you can use a decentralized exchange.