Yearn.Finance (YFI) is a liquidity aggregator that offers automated yield trading strategies through several lending pools. Yearn.finance, the pool’s most popular protocol, transfers funds between leading DeFi lending protocols such as Aave, Compound, and dYdX – ultimately aiming to give lenders the best return on liquidity.
yEarn created Curve’s Y pool, a lending pool that includes leading stablecoins such as USDC, DAI, USDT and TUSD, and used for the BUSD Curve pool thanks to yEarn’s profit-generating yToken standard.
yEarn recently released a local governance token, YFI, which is earned through liquidity across a number of different pools. YFI earns by proving its liquidity and is one of the only DeFi tokens to be launched without a premise and without an initial DEX offering.
What exactly does it do?
The DeFi world has experienced tremendous growth over the past few months. Many lenders that offer a variety of services such as DeFi projects are starting to attract more and more audiences.
Yearn.finance really caters to exactly this audience. Because yearn.finance users can use the DeFi network much more efficiently by using this product. The reason is that with yEarn, you will get a lot of interest from projects, which will collect processing fees automatically either way. Investors can do this in the most efficient way for themselves when they want to take advantage of Aave lending, or maker savings rate service.
The yearn.finance ecosystem includes the following products:
- yearn.finance – Lenders convert profits to optimize loan yields (live)
- ytrade.finance – Trading stablecoins (testnet)
- yliquidate.finance – 0 auto-liquidated capital for Aave (testnet)
- yswap.exchange – One-party auto market maker (direct)
- iborrow.finance – Credit vault for smart contract lending smart contract (testnet)
- The yearn.finance ecosystem is controlled by the $YFI . token
The Yearn.Finance ecosystem, developed by Andre Cronje, allows everyone to benefit from different products. It seems that the Yearn.finance ecosystem is still under development and has some shortcomings that need to be addressed, promising a bright future. As reported by Cronje, the following products are available in this ecosystem:
- yTrade: DAI offers the use of leading stablecoins such as USDC, TUST, USDT and sUSD with up to 1000x leverage. You can use a maximum leverage of 250x, if you do not pay the necessary transaction fees and want to trade for free.
- iLiquidiate: An automated liquidation tool for Aave users.
- iLeverage: Using USDC as the base asset in Dai Vault, it allows you to take positions with 5x leverage.
- iPool.finance: The first pool that switches between pools y.curve.fi and sUSD cur.fi.
- ySwap: A stable AMM (automatic market maker) that collects interest and rewards, and provides unilateral liquidity.
- * .finance: An unnamed new product. It will be for Aave users who are focusing on credit.
The system consists of 3 main components:
yVaults are simple token holders and function like y Tokens. They keep track of your stock of an ever-growing pool.
Controllers are control mechanisms, because yield trading strategies have become dependent on understanding the value of external assets, which leaves us with controllers managed by managers. administrator. A subset of administrators selected for management will assign the most effective strategies on a per-vault basis.
Strategies are simple holders, They specify what they want to have and the job is to maximize the return on that asset in the way possible, in a no loss way.
Thanks to yearn.finance’s services, users can capture revenue rates they could never capture on their own. This is an increasingly popular management and management token called YFI. Users earning income from various DeFi platforms through Yearn.finance can also earn YFI tokens. According to sources like DeFi Rate, people are likely going to pools like yCurve, for YFI.
According to AZCoin News
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