What is Yearn.Finance (YFI)?
Yearn.Finance (YFI) is a liquidity aggregation tool that provides automated yield farming strategies through a number of lending pools. Yearn.finance, the protocol’s most well-known pool, shifts capital between top DeFi lending protocols like Aave, Compound and dYdX – finally aim to give the lender the best return on liquidity.
yEarn created the Curve’s Y pool, a lending group consisting of leading stablecoins such as USDC, DAI, USDT and TUSD, and used for the BUSD Curve pool thanks to yEarn’s profit-making yToken standard.
yEarn recently released a local admin token, YFI, which is earned through liquidity on several different pools. YFI is earned by proving its liquidity and is one of the only DeFi tokens launched with no premine and no initial DEX offering.
What exactly does it do?
DeFi’s world has experienced tremendous growth over the past few months. Many lenders who offer many services like the DeFi project are starting to attract more and more audiences.
Yearn.finance really serves exactly this audience. Because yearn.finance users can use DeFi network much more effectively by using this product. The reason is that the yEarn you will receive interest-earning much from what projects, what projects how much processing fee will automatically be said in any way. Investors can do this in the most efficient way for themselves when they want to take advantage of the Aave loan service, or the manufacturer’s Savings rate service.
The yearn.finance ecosystem includes the following products:
- yearn.finance – Profit switching lender to optimize lending yields (live)
- ytrade.finance – Leveraged stable coin trades (testnet)
- yliquidate.finance – 0 capital automated liquidations for Aave (testnet)
- yswap.exchange – Single sided automated market maker (live)
- iborrow.finance – Credit delegation vaults for smart contract to smart contract lending (testnet)
- The yearn.finance ecosystem is controlled by the $ YFI token
The yearn.finance ecosystem, developed by Andre Cronje, allows people to benefit from different products. It seems that the Yearn.finance ecosystem is still in development and there are some shortcomings that need to be addressed, promising a bright future. According to Cronje’s report, the following products are currently included in this ecosystem:
yTrade: DAI provides the use of leading fixedcoins such as USDC, TUST, USDT, and sUSD with leverage rates of up to 1000 times. You can use the leverage ratio of 250 times at most, if you do not pay the required transaction fee and want to trade free of charge.
iLiquidiate: An automated liquidation engine for Aave users.
iLeverage: Using USDC as the underlying asset in Dai Vault, it allows you to take positions with a 5-fold leverage ratio.
iPool.finance: The first pool to switch between y.curve.fi and sUSD curve.fi pools. Before being passivated, he had $ 10 million in assets under his management.
ySwap: A stable AMM (automated market maker) that collects interest and rewards, while providing unilateral liquidity.
* .finance: A new product that has not been named yet. It will be for Aave users who are focusing on credit.
The system consists of 3 main components:
yVaults are simple token containers and function like y Tokens. They track your share of an ever-growing pool.
Controllers are control mechanisms, because productivity farming strategies have become dependent on understanding the value of external assets, which has led us to have controllers managed by administrators. A subset of administrators selected to manage will specify the most productive strategies on a per vault basis.
Strategies are simple containers, they specify what they want to have, and their job is to maximize profits on that asset the way they can, in a loss-free manner.
Thanks to the services of yearn.finance, users can capture the rate of revenue that they can never capture by themselves. This is increasingly common yearn.finance and management tokens named YFI. Users earning revenue from various DeFi platforms through Yearn.finance can also earn YFI tokens. According to sources like DeFi Rate, people are likely going to groups like yCurve, to get YFI.