DeFi Yield Farming

Yearn Finance: Easy Way To Create Risk-Adjusted Returns

Pinterest LinkedIn Tumblr

Technology does not cease to amaze many people these days with its countless innovations. The Internet, Cryptography and Blockchain provide the world with the means to commonly develop and control a financial operation without the necessity for central administrations. Computers have interrupted almost all industry across the ages. Every discovery or reforms develops on the preceding ones, and digital goods and services have grown more complex. Technology has enabled us to create a world perfect for our needs. 

On the financial front, the upsurge of Blockchain technologies paved the way for financial freedom and control to prevail. Today, DeFi products range from borrowing, lending, savings, insurance, derivatives to option trading without any middlemen involvement. The fact that we can now run financial transactions without a third-party, which increase cost and time is a groundbreaking development bring intense human freedom and progress. We are in an era where computers and mathematics are creating financial transparency and accountability.

Let us take a look at one of the most popular projects in the DeFi space that is making waves in its experimental stage. The new phenomenon, known as Yield Farming or to wit modern agriculture is quite impressive for an era where central control is eroding financial freedom and gains. 

Yearn Finance Disrupts Traditional Financing 

Yearn Finance, popularly known as yEarn represents a line of DeFi products concentrated on building an easy way to produce unusual risk-adjusted returns. It provides possibilities for depositors of several assets through best-in-class lending protocols, liquidity pools, and community-made yield farming procedures on the Ethereum Blockchain.

Lauded as one of the most decentralized networks in Cryptosphere, the yEarn protocol strives to clarify Decentralized Finance while concurrently equipping users with the highest achievable year-end rate yields on their deposited digital assets. Launched in February 2020, it has core products with immense impact on savings, lending and borrowing without any blemish.

Yearn Finance source code auditing is the task of some of the best names in the industry like Certik and CryptoManiac. There is also a governance system called Yearn Improvement Proposal or YIP that is responsible for adding features to the yearn ecosystem.  YIP occurs when a user(s) commences a proposal in the forum, create a discourse around it and assess the opinions of community members as to whether it is desirable. 

In a situation where most users concur with it, then it moves on-chain for community members to vote on it. For a vote to pass, 20 per cent out of the staked Yearn Finance requires to cast on a proposal, and it has to have at least 50 per cent of the total votes in favor. 

yEarn’s Native Token

The Yearn Finance native utility currency is known as YFI. It is, also referred to as the governance token of Yearn Finance. Its limited supply is 30,000, which is minted and now thoroughly distributed. However, governance can print more, if a proposal to that effect comes up and it passes. 

Whenever a deposit goes into a yearn service portal, it is wrapped and delivered as a yToken stewarding the liquidity contributed. So if you deposit DAI ina y.curve.fi you will receive yDAI in exchange. But if you deposit a yToken into different yearn service, you will receive a yyToken. 

Core Products

Yearn Finance has a series of uniques products and services that are making a difference in the Crypto market. Below is an analysis of them: 

yVaults: The vaults represent community-developed yield farming automata. yVaults serve a novel approach which designation is to maximize the yield of the invested asset and decrease the risk.

Earn: This product is a lending aggregator that endeavours to accomplish the most distinguished yield for supported coins like DAI, USDC, USDT, TUSD, sUSD, or wBTC at all seasons. It achieves that by leveraging programmable tools to move these digital assets within different lending protocols like AAVE, dYdX, and Compound that function on the Ethereum Blockchain.

Zap: Zap is for swapping different assets on Yearn Finance to bi-directionally into pooled interest-bearing coins. The idea behind Zap is to promote more smooth and frictionless exchange amid various assets.

yInsure: It is known as the Cover, and has no KYC features or requirements. yInsure pooled insurance coverage underwritten by Nexus Mutual that constitutes of three components of Insurer Vaults, Insured Vaults and Claims Governance. 

Insurer Vaults maintains the assets which are related to insuring claimants, while the Insured Vault holds the assets claimants desire to be insured. The Claim Governance system stewards the insurance mediation procedure.

Join yEarn Community

Learn more about Yearn Finance by joining one of their multiple communities on social media:

For an analysis of the source code, here is the Github for your perusal. 

Write A Comment

chainlink
Chainlink (LINK) $ 49.08
yearn-finance
yearn.finance (YFI) $ 53,706.00
ethlend
Aave [OLD] (LEND) $ 4.47
uniswap
Uniswap (UNI) $ 40.16
havven
Synthetix Network Token (SNX) $ 18.94
uma
UMA (UMA) $ 25.49
compound-governance-token
Compound (COMP) $ 730.97
maker
Maker (MKR) $ 5,300.23
wrapped-nxm
Wrapped NXM (WNXM) $ 99.76
0x
0x (ZRX) $ 2.04
loopring
Loopring (LRC) $ 0.599764
republic-protocol
REN (REN) $ 1.03
kyber-network
Kyber Network Crystal Legacy (KNCL) $ 3.55
numeraire
Numeraire (NMR) $ 69.28
band-protocol
Band Protocol (BAND) $ 18.12
terra-luna
Terra (LUNA) $ 16.70
yfii-finance
DFI.money (YFII) $ 2,691.04
sushi
Sushi (SUSHI) $ 16.10
balancer
Balancer (BAL) $ 65.78
thorchain
THORChain (RUNE) $ 18.25
reserve-rights-token
Reserve Rights Token (RSR) $ 0.080636
ampleforth
Ampleforth (AMPL) $ 1.30
nest
Nest Protocol (NEST) $ 0.035128
serum
Serum (SRM) $ 10.32
keep-network
Keep Network (KEEP) $ 0.583552
augur
Augur (REP) $ 49.25
curve-dao-token
Curve DAO Token (CRV) $ 3.85
kava
Kava.io (KAVA) $ 6.45
bancor
Bancor Network Token (BNT) $ 7.69
just
JUST (JST) $ 0.145664
gnosis
Gnosis (GNO) $ 260.45
force-protocol
ForTube (FOR) $ 0.103695
cream-2
Cream (CREAM) $ 139.89
melon
Enzyme (MLN) $ 110.88
tellor
Tellor (TRB) $ 112.47
akropolis
Akropolis (AKRO) $ 0.051111
aurora-dao
IDEX (IDEX) $ 0.125213
nectar-token
Nectar (NEC) $ 0.085034
bzx-protocol
bZx Protocol (BZRX) $ 0.953680
airswap
AirSwap (AST) $ 0.448616
switcheo
Switcheo (SWTH) $ 0.060500
orion-protocol
Orion Protocol (ORN) $ 16.10
dforce-token
dForce Token (DF) $ 0.382985
meta
mStable Governance Token: Meta (MTA) $ 2.37
pnetwork
pNetwork (PNT) $ 2.33