yVaults are capital pools that obtain a yield from opportunities in the market. Each vault has a strategist and guardian that get different fees for the work they perform.
By pooling their funds, users share gas costs, benefit from automated processes and rebalancing strategies, and don’t need to be proficient in DeFi intricacies.
yEarn is a lending aggregator that moves funds between several platforms as the interest rates change. The user ensures getting the highest rates always.
Other projects in R&D involve stablecoins, loans, liquidation opportunism, and swaps.
YFI is the ERC20 platform governance token, and its holders can get a portion of the protocol profits if they stake in the governance pool, but only a small percentage do.
The project is fully open-source and governed by a proposal system with different levels of delegation.