The whole thing works to minimize a tedious problem for the DeFi community, gas fees. All the Vault yield-maximizing strategies are designed and voted by the community. The protocol will automatically convert the profits back to the token you deposited.Īnd Yearn to be completely decentralized means that the community holds power. Automatically shifting the funds and rebalancing the investment once new circumstances arise. Yearn then uses these stablecoins to find and invest in yield farming opportunities. The first is to deposit a crypto asset, then the smart contract uses it as collateral and borrows stablecoins in its place. The process with which Yearn achieves these amazing returns is quite complicated, so we’ll try to break down as much as we can. And the returns aren’t by any minor, and sometimes they can even reach 70-80%. Deposit Chainlink (LINK), for example, and with Vaults, you will gain more LINK from it. Users can deposit crypto assets in Vaults and earn a yield from it. Yearn Finance is best known for its Vault product. Like we already mentioned, Yearn Finance offers five DeFi products: Vault Each will receive a score of a maximum of five points. In this section, I’ll be judging the fundamentals of Yearn Finance based on four criteria use case, tokenomics, team, and community. Heck, even I had to spend a couple of hours going down the rabbit hole to learn how it works, so let’s break it down a little, shall we?Īs soon as you enter the platform, you’ll see five DeFi products on the front page: Yearn Finance can be hard to understand for newbies in the DeFi space. The project has gathered a lot of attention since its launch in July of 2020, even peaking out at over $90,000 in 2021. In simple terms, Yearn provides users with a wide array of DeFi options that we’ll further explore later, mainly making high Yield Farming accessible to everyone. Yearn Finance is a protocol that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain. In Conclusion My YFI Price Prediction 2021.
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