yearn.finance – Mind Mapped

Overview of yearn.finance

Yearn.finance is an array of decentralized finance (DeFi) protocols concentrating on creating a simple and effective way to generate high-risk adjusted yields for depositors of several assets through lending protocols, liquidity pools, and community governed protocols on Ethereum.

yearn.finance (YFI) is described as a “decentralized” finance (DeFi) platform which aims to offer aggregated liquidity and automated marketing making (AMM) by moving providers’ funds between other so-called DeFi platforms, including Aave, Compound, dYdX, among others.

Yearn.Finance, one of the popular decentralized finance (DeFi) platforms, has suffered a massive attack on one of its DAI lending pools on late Thursday that resulted in the total loss of $11 million, the protocol confirmed on social media.

Yearn.finance, or yEarn, as it’s also called, is an entire ecosystem composed not only of yearn.finance, but which also includes ytrade.finance, yliquidate.finance, iborrow.finance, and yswap.exchange.

Yearn.finance users can face a high risk of losing money thanks to market conditions changing rapidly and opportunistic entities attempting to profit from less-experienced participants.

Yearn.finance is currently refining its network and offering a “bug bounty” of up to $500,000 paid out in yUSD if you can spot crucial errors in Yearn.finance’s security protocol.

Yearn.finance is bringing a much-needed level of actual community governance to DeFi while also providing a few impressive returns on investment with (relatively) low risk.

yearn.finance price Index provides the latest YFI price in US Dollars , BTC and ETH using an average from the world's leading crypto exchanges.

Yearn.finance makes a profit by charging withdrawal fees, currently 0.5% at the end of September 2020, as well as 5% gas subsidization fees.

Yearn.Finance could make it a whole lot easier for investors to ensure they’re getting the best APRs at any given moment possible.

Mine

The journey of Yearn.finance has been nothing short of spectacular, becoming the most expensive cryptocurrency with a value currently above $30,000; it has brought the stance of DeFi to a whole new level due to its functions and capacity to operate with other existing DeFi protocols.The stability of the price of YFI is also a big plus as prices are determined by the number of locked assets in the Yearn.finance protocol pools.

Network

Got an eye for bug spotting?Learn more about the bug bounty and how you can participate here.

Support

As mentioned previously, yearn.finance moves stablecoin funds between Compound, Aave, and DyDx depending on which stablecoin asset pool is generating the highest APY.Yearn.finance currently supports DAI, USDC, USDT, TUSD, and sUSD.Since yearn.finance is community governed, the lending protocols it switches between as well as the list of supported cryptocurrencies may and likely will change over time.

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Can Yearn really reach the masses?

Maybe.And the complexity of liquidity mining is why.

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Final Thoughts: Is Yearn Finance Legit?

The astronomical rise of its token YFI put it on the radar, but Yearn Finance is more than just a rapidly growing token.Yearn Finance has cemented itself as a key player in the DeFi market due to its ability to interface with multiple pools and offer the best possible rates.

How can users hedge their risk?

Yearn is starting to build its own set of insurance systems, relying on Nexus Mutual.

How does governance work?

Yearn has a governance forum on its site just like most DeFi projects do.It has a very active community with lots of proposals.

How to earn Compound COMP Tokens?

Compound Finance is a project that algorithmically implements money markets.It allows generating markets where it is possible to lend assets and borrow them.

How To Earn YFI with Yearn Finance?

The Yearn Finance platform provides the opportunity for crypto holders to participate in Yield Farming by interacting with DeFi-protocols.Farming on a blockchain is similar to the usual planting of seeds in the ground for their multiplication.

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So what’s Yearn doing with all these Vault deposits?

That’s the rub – and this is where less-sophisticated investors should be cautious.

What are the risks?

First, there is the risk of losing your funds if a Yearn pool is drained by a malicious party.Given the nascent nature of the DeFi space, this is a risk one must always consider.

What happens when a user deposits?

The user gets a token back that represents their share of the liquidity pool.

What is the YFI token? Why has it traded as high as $38,000?

YFI is the governance token for Yearn.

What is yEarn Finance?

yEarn functions as a decentralized aggregator of yield farming opportunities.It allows users to optimize their yield farming results by combining different platforms.

What Is Yearn Finance?

Yearn Finance offers DeFi investors a way to automatically search for the best APRs.It scours liquidity pools, looking for the best returns so traders don’t have to spend time continuously switching between different protocols to evaluate APRs one-by-one.

What is Yearn Finance?

Yearn.Finance has become one of the most popular players in the DeFi ecosystem.It is a yield aggregator that provides automated growing strategies for farmers and liquidity providers.

What is Yearn?

Yearn Finance is a suite of products built on Ethereum that provides lending aggregation, yield generation, and insurance.The protocol is maintained and developed by various independent contributors and management of the protocol is governed by YFI holders.

What is YFI cryptocurrency?

YFI is an ERC-20 token used to govern the protocols within the yearn.finance ecosystem.YFI tokens can be earned by interacting with these protocols.There is a max supply of 30 000 YFI tokens and there was no ICO or pre-mine.You can earn YFI tokens is by providing liquidity to one of yearn.finance’s platforms (or buy the token from an exchange).The last YFI token was issued in the ecosystem on July 26th.

What is YFI Cryptocurrency?

YFI is simply a governance token available to the Yearn.finance ecosystem.It is designed and used solely on the Ethereum platform (ERC-20).YFI can be earned from liquidation with yTokens, and the fact that it cannot be pre-mined, or was ever allocated to the founder as equity, gives credence to the belief that it is one of the most decentralized tokens currently on the market.The maximum amount of YFI stands at a paltry 30,000, and it has all been distributed within the ecosystem.

What is YFI token?

This is Ethereum-based tokens that govern the Yearn.finance platform.The protocol sends YFI to liquidity providers who supply particular yTokens.YFI was not meant to be exchanged – it’s rather used for voting.Yet curiously enough, on 30th August, YFI reached a new record high at $38,883 and its market cap spiked to $1+ billion.

What’s behind YFI’s surge?

The confluence of strong technicals, new products, yield farming and the growing popularity of DeFi liquidity pools likely fueled YFI’s surge.

Why yEarn?

yEarn offers an easy and intuitive way to enter various yield farming opportunities in a few clicks.The protocol is constantly adding innovative new pools that, while risky, are pushing composability to its limit to make the most out of what DeFi has to offer.