As the strategies earn yield in both trading fees for the chosen liquidity pool and governance rewards, harvesting essentially accounts for all yields earned and convert them into the stablecoin used in that particular vault. These yields are then redeposited into the strategy to compound the gains.
Here's an example of a harvest where CRV and CVX are converted into USDC:
Harvests also report yields to the strategy that updates the APY shown on the dashboard. You can see more about these reports in the events of the harvest transaction. In the below example, the gain is 16767.569108 USDC (it uses 6 decimals).
Example: event logged in a USDC vault harvest
This also updates the total asset value for Vault (GVT) and PWRD in the PnL contract. These would in turn update the pricePerShare in Vault's smart contract to change the Vault token value redeemable at the smart contract. For PWRD the yield comes in rebasing.
Since the implementation of Vote 5, a 5% performance fee is implemented for Vault and PWRD. That is why each harvest would also convert 5% of the yields gained (not principal) into Vault tokens that you could see in the last line of Tokens transferred on the transaction overview page. These tokens will later on be transferred to Gro DAO Treasury to acquire GRO tokens.
How do I see these harvests?
Harvest bot contract address can be found in this page. We are now in transition to decentralised harvesting with Gelato, so not all harvets done thus far are through this bot address.
Using Gelato for harvesting is part of our decentralisation initiative. You can track the harvests done using the Gelato Ops dashboard linked below.
Read more below to learn how we got started with Gelato in the Medium article below!
Gro Protocol Decentralises Harvests with Gelato Ops
Reminder about Risk
DeFi is still a very new space, and while that's exciting, it comes with risk. Gro Protocol's software helps you access this world, but make sure you do your own research and only supply assets you can afford to lose.