There are at least two auto-compounding yield farming solutions on Celo. Here is a quick comparison:
As the table above shows, Revo's main differentiators are:
- fees (10x lower)
- zap-in from any token, as long as there is a swap path between that token and Celo
Beefy and Autofarm use the majority of their fees (3 and 2.5% respectively) to buy back their governance tokens and deposit the purchased tokens into a "vault" rewarding users who have staked the governance tokens. This allows them to describe their governance tokens as interest-bearing, and ensures that demand for the governance token will increase proportionately to the TVL in their auto-compounding farms.
In short, the fees go towards enriching governance token holders.
While the model appears to work insofar as it drives up the value of the governance token, it also creates a mis-aligned incentive for the platform UX. Governance token holders are the exact parties who get to vote on changes to fee structure. If the fees go directly into the voters' pockets, who will vote to lower the fees, even if it will benefit the end-user? As such, we continue to see high fees, an order of magnitude higher than robo-advisors in centralized finance like Betterment.
Revo's founding team is committed to prioritizing the end-user over all else, and maintaining that core value as we transition to decentralized governance. As such, we will not charge fees to bankroll token buy-backs. We worked hard to set fees at the minimum level that is still safe, and we are determined to keep them low.