Are you a crypto newcomer or a more traditional investor yearning to get into the DeFi game? That’s where Yearn.Finance, a protocol that in recent months has garnered both attention and investment, comes in.
That attention has come from a wide range of sources since it first debuted in June of 2020. That includes the protocol’s diverse range of Dapps, the project’s founder, Andre Cronje, and his decision regarding the network’s YFI token. Add that to the more than $650 million that’s poured into the protocol over the past year, and it can be a lot to keep up with.
Flipside Crypto’s community-enabled analytics are on the way for the Yearn protocol, and will make their debut later this week. So, with that in mind, we thought now would be a good time to dive in and find out what Yearn is, how it works, and how you can get involved.
What is Yearn?
Yearn is a powerful protocol with a diverse set of uses and applications, which has driven nearly $750 million in deposits to the network in less than a year. But this also means it can be difficult for the uninitiated to wrap their heads around what’s really going on.
So, let’s start with the basics. Put more simply, it’s designed to serve as a gateway to a host of DeFi products. That latter group includes Earn, Vaults, Zap, and more. We’ll dive further into what each of those are later on.
For now, think of Yearn as a front door into the DeFi ecosystem for noobs and mainstream investors. The goal is to create a simple intuitive interface for these applications and help more users access DeFi tools.
What is YFI?
YFI is the Yearn protocol’s governance token. To participate in the governance process on the protocol, users must own it. To cast a vote, users stake their YFI, which freezes it for three days, and receive a small fee for voting.
Only 30,000 YFI tokens exist, and as of press time, all have been distributed. Don’t expect anymore to be minted anytime soon, either. New tokens can only be created via a governance vote, and experts told Coindesk that there’s no reason to anticipate that vote would pass in the near future. That means users will need to buy YFI, assuming they didn’t receive any in the initial distribution.
That distribution attracted even more attention for the protocol. Interestingly, the project’s founder, Andre Cronje, did not reserve any YFI for himself, as most DeFi founders tend to do. Instead, the tokens were distributed to users who had deposited in certain liquidity pools. These pools were seen as important to the long term health and success of the project.
Vaults, Earn, and Zap, oh my!
As we noted earlier, Yearn offers a wide range of applications and interfaces designed to help users more easily invest in various DeFi offerings. This includes both products created by Yearn itself and those that facilitate connections to other protocols.
The most well-known of Yearn’s own products is Vaults. They’re designed to allow users to earn yield for assets they hold, paid out in that token. To do so, Yearn borrows stablecoins against the asset, then uses those coins to participate in yield-farming, rebalancing constantly and giving the lion’s share of the proceeds to users.
Yearn’s products also include Earn. It’s designed to identify the highest interest rates users can earn while lending an asset.
Yearn also offers tools that serve as portals to other DeFi projects. That includes Zap, which functions as an interface for Zapper.fi, designed to help users simplify the process of taking complex positions. It also includes APR, which offers a one-stop shop for viewing yield rates on various assets, and Cover, which serves as an access point to Nexus mutual.
Yearn data is coming to Flipside Crypto
Yearning to get more involved with this protocol? If so, you visit the Yearn website, read their documentation, or follow the team on Twitter. You can also deposit into one of the Yearn vaults here or find the Earn app here.
And stay tuned for Yearn community-enabled analytics from Flipside Crypto! We’ve got labeled and curated on-chain data for Yearn on the way. We’ll also be offering bounties, a scavenger hunt, and other ways to help you get involved.
Join our Discord to stay in the loop, or if you prefer email, subscribe to our weekly newsletter, the Bounty Brief!
Are you a crypto newcomer or a more traditional investor yearning to get into the DeFi game? That’s where Yearn.Finance, a protocol that in recent months has garnered both attention and investment, comes in.
That attention has come from a wide range of sources since it first debuted in June of 2020. That includes the protocol’s diverse range of Dapps, the project’s founder, Andre Cronje, and his decision regarding the network’s YFI token. Add that to the more than $650 million that’s poured into the protocol over the past year, and it can be a lot to keep up with.
Flipside Crypto’s community-enabled analytics are on the way for the Yearn protocol, and will make their debut later this week. So, with that in mind, we thought now would be a good time to dive in and find out what Yearn is, how it works, and how you can get involved.
What is Yearn?
Yearn is a powerful protocol with a diverse set of uses and applications, which has driven nearly $750 million in deposits to the network in less than a year. But this also means it can be difficult for the uninitiated to wrap their heads around what’s really going on.
So, let’s start with the basics. Put more simply, it’s designed to serve as a gateway to a host of DeFi products. That latter group includes Earn, Vaults, Zap, and more. We’ll dive further into what each of those are later on.
For now, think of Yearn as a front door into the DeFi ecosystem for noobs and mainstream investors. The goal is to create a simple intuitive interface for these applications and help more users access DeFi tools.
What is YFI?
YFI is the Yearn protocol’s governance token. To participate in the governance process on the protocol, users must own it. To cast a vote, users stake their YFI, which freezes it for three days, and receive a small fee for voting.
Only 30,000 YFI tokens exist, and as of press time, all have been distributed. Don’t expect anymore to be minted anytime soon, either. New tokens can only be created via a governance vote, and experts told Coindesk that there’s no reason to anticipate that vote would pass in the near future. That means users will need to buy YFI, assuming they didn’t receive any in the initial distribution.
That distribution attracted even more attention for the protocol. Interestingly, the project’s founder, Andre Cronje, did not reserve any YFI for himself, as most DeFi founders tend to do. Instead, the tokens were distributed to users who had deposited in certain liquidity pools. These pools were seen as important to the long term health and success of the project.
Vaults, Earn, and Zap, oh my!
As we noted earlier, Yearn offers a wide range of applications and interfaces designed to help users more easily invest in various DeFi offerings. This includes both products created by Yearn itself and those that facilitate connections to other protocols.
The most well-known of Yearn’s own products is Vaults. They’re designed to allow users to earn yield for assets they hold, paid out in that token. To do so, Yearn borrows stablecoins against the asset, then uses those coins to participate in yield-farming, rebalancing constantly and giving the lion’s share of the proceeds to users.
Yearn’s products also include Earn. It’s designed to identify the highest interest rates users can earn while lending an asset.
Yearn also offers tools that serve as portals to other DeFi projects. That includes Zap, which functions as an interface for Zapper.fi, designed to help users simplify the process of taking complex positions. It also includes APR, which offers a one-stop shop for viewing yield rates on various assets, and Cover, which serves as an access point to Nexus mutual.
Yearn data is coming to Flipside Crypto
Yearning to get more involved with this protocol? If so, you visit the Yearn website, read their documentation, or follow the team on Twitter. You can also deposit into one of the Yearn vaults here or find the Earn app here.
And stay tuned for Yearn community-enabled analytics from Flipside Crypto! We’ve got labeled and curated on-chain data for Yearn on the way. We’ll also be offering bounties, a scavenger hunt, and other ways to help you get involved.
Join our Discord to stay in the loop, or if you prefer email, subscribe to our weekly newsletter, the Bounty Brief!