什么是 yearn.finance

yearn.finance is a yield aggregator created in early 2020 by “DeFi godfather” Andre Cronje, inspired by the inconsistent yields offered by different DeFi protocols. It aims to provide users with high yields on ETH, stablecoins, and other cryptocurrencies while simplifying the process of crypto investing. The platform also offers customized tools for various DeFi protocols to enhance the coverage of its yield aggregator, including Curve, Compound, Aave, and more.

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

The launch of yearn.finance caused a significant shock to the DeFi market, not only because it was the first DeFi yield aggregator but also because its token adopted a “Fair Launch” model. That is, Andre Cronje did not raise any funding for the project, nor did he reserve any $YFI tokens for himself, aiming to make the platform truly owned by every token holder. This has led to yearn.finance being praised as “a true embodiment of decentralization,” and its token price once surpassed Bitcoin, breaking $60,000.

Currently, yearn.finance has four main products: Vault (yVault), yCRV, veYFI, and yBribe, with Vaults providing liquidity mining being the core product of the platform.

What is a Vault (yVault)?

In traditional finance, depositors earn interest on their bank deposits—interest generated from the bank lending out these assets (or other yield-generating asset allocations). yearn.finance’s Vault is like a savings account in the crypto world, where users can profit by depositing crypto assets—i.e., earning yields through liquidity mining.

After users deposit tokens into a Vault, they are automatically minted into a new yToken, which is a type of LP token. yTokens can be used to redeem the originally 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. In short, a Strategy is a series of automated execution codes, including which assets the Vault should borrow, how to allocate assets in liquidity mining, where to sell, and so on.

As the platform continues to develop, Vaults are also iterating. Version 1 Vaults supported only a single Strategy, while Version 2 Vaults can hold up to 20 Strategies. In the Version 3 launched last May, Vaults can accommodate more Strategies and enable higher automation, higher risk, and higher returns.

Vaults do not charge deposit or withdrawal fees, generally do not have account management fees, but take about 10% of the yield as performance fees. Compared to traditional savings interest, this fee mechanism allows users to enjoy a greater share of the liquidity provision rewards.

Currently, Vaults adopt a dynamic fee rate mechanism, with specific fees varying depending on the type of Vault.

Additionally, yearn.finance launched the Vault Factory feature in early 2023. This feature allows users to deploy an auto-compounding Vault for any token. Currently, this feature only supports Strategies for LP tokens from Curve, with the platform indicating that future support will extend to more token types. **$VANRY **$JELLYJELLY **$VFY **