yearn.finance was inspired by the "Godfather of DeFi" Andre Cronje after he discovered that the benefits provided by different DeFi protocols were inconsistent. , a yield aggregator created in early 2020, aims to provide users with high yields on ETH, stablecoins and other crypto tokens, while simplifying the process of crypto investment. The platform is also providing customized tools for various DeFi protocols to improve the coverage of revenue aggregators, including Curve, Compound, Aave, etc.

If you want to know more about Andre Cronje and his projects, you can click to view the article: DeFi Godfather-Andre Cronje’s Blockchain Footprint

yearn The launch of .finance has caused quite a shock to the DeFi market, not only because it is the first DeFi revenue aggregator, but also because its tokens adopt a "Fair Launch" model, that is, Andre Cronje does not For any financing of the project, he personally did not reserve any $YFI tokens, intending to make the platform truly belong to every user who owns tokens. This made yearn.finance not only praised as "the embodiment of the true decentralized spirit", but its currency price once surpassed Bitcoin and exceeded US$60,000.

Currently, yearn.finance has four main types of products: Vault (yVault), yCRV, veYFI and yBribe. Among them, Vault, which provides liquidity mining, is the core of the platform. product.

What is Vault (yVault)?

In the traditional financial field, depositors can obtain interest on their deposits in banks - interest comes from the income earned by the bank from lending these assets (or other profitable asset allocations). yearn.finance's Vault is like a savings account in the crypto world. Users can make money by depositing crypto assets - that is, earning income through liquidity mining.

After the user deposits the token into the Vault, a new yToken will be automatically minted, which is a LP token. yToken can be used to redeem the initial deposited liquidity at any time, as well as the rewards accumulated from the liquidity stored in the Vault.

yearn.finance’s Vault compresses complex DeFi applications and components into a simplified trading strategy (Strategy). Simply put, Strategy is a series of automatically executed codes, including which assets Vault should borrow , which assets are allocated to liquidity mining, where to sell them, etc.

As the platform continues to evolve, Vault is constantly iterating. The v1 version of Vault only supports a single Strategy. A single Vault in the v2 version can have up to 20 Strategies. In the v3 version launched last May, more Strategies can be accommodated in the Vault, while enabling a higher degree of automation and higher A Vault with higher risk and higher returns.

Vault does not charge deposit and withdrawal fees, and generally there is no account management fee. It only charges a performance fee of about 10% from the income. Compared with savings interest in traditional finance, this fee mechanism allows users to enjoy the benefits of providing liquidity to a greater extent.

Vaults currently adopt a dynamic rate mechanism. The specific charges will vary depending on the type of Vaults. For real-time rates, please refer to: https://yearn.watch/

In addition, yearn.finance also launched the Vault Factory function in early 2023. This feature allows users to deploy an automatically compounding Vault for any token. Currently, this function only supports Strategy for LP tokens from Curve, and the platform states that it will cover this function to more token types in the future.