DeFi yield optimization: yearn.finance in 5 🖐

What is yearn.finance (YFI)?

Yearn Finance is a suite of DeFi products that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain.

It launched in 2020 and has more than $3 bn in assets locked.

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.

YFI supply is fixed and fully in circulation.

All YFI was distributed to users and liquidity providers at launch, with no team or investor allocation. However, in 2021, the community approved the creation of new coins (the total supply increased 22%, from 30,000 coins to 36,666) to reward key contributors and fund the treasury that pays the proposals.

Of course, this is not financial advice yada yada yada.

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