Yearn Finance Vault: Knock On DeFi Investing

1. Glimpse of Nostalgia

Yearn Finance's mission is to open the door to easy and convenient investing in DeFi. Andre Cronje, founder of Yearn Finance, pointed out that since its launch in January 2020, an easier way to invest in DeFi is needed to unlock the potential of DeFi. By summer 2020 most people will be aware of the potential of hiding in the lending process, but working with digital assets and generating income is not easy.

In order to measure the time and risk of a project, users need to learn and understand blockchain technology and smart contracts. In this regard, Yearn Finance was born to facilitate user investment in DeFi. Users only need to provide revenue for the process to be profitable.

Yearn Financial is an industry standard for managing the financial situation in the cryptocurrency world and using risky assets to earn negative returns.Yearn Finance is generally regarded as a wealth management company that allocates its clients in the most profitable forms.Over the years, Yearn Finance has become an important business entity in financial management that includes all the advantages of TradFi (traditional finance). Yearn Finance encourages everyone to gain the benefits that seem impossible with bank accounts, while improving DeFi's ability to generate Lego funds and integrate the DeFi protocol to create financial support and new products.

One of Yearn Finance's main sponsors was Banteg, better known as the "Yearn Finance Rabbit Amulet", which did well on the cover of the August 2021 issue of Fortune. You can see that Yearn has spurred competition between DeFi and TradFi digital advantages.

2. How does Yearn Finance facilitate investing in DeFi with yVault?

Yearn Finance has achieved its goal of investing in DeFi easily and cheaply with its yVaults (Yearn's vault) product portfolio.The Vault represents crypto financial institutions that accept and distribute deposits as "finding the best recovery possible through DeFi."When users deposit tokens into the wallet, they are exchanged for yVault tokens. yVault tokens are receipts and represent the user affiliated with yVault. For example, when depositing WETH tokens, users switch to yWETH tokens. When yVault generates revenue, multiple tokens can be withdrawn from yVault, increasing the value of yVault tokens. Nice and clean, right?

You can see that the "right investment" plays an important role in the design of yVault. These ideas are driven by the Computing Hub, an integral part of Yearn Finance. The gist of the process is that Yearn Finance can outperform the average DeFi user, or the average user doesn't have time to research the process that generates income. . Both assumptions are true. However, this sentence tries to explain why it is more difficult.

3. Find yVault in File: Story Completed

One of the most important metrics for measuring the performance of a DeFi product market is its total cost stability (TVL). Yearn's TVL is now worth $5.44 billion of Ethereum and $345 million of Phantom, up from nearly $7 billion last year. According to statistics from Defi Llama, Yearn ranks TVL top in the DeFi ecosystem at #13.

Over 50 yVaults bring value back to the Yearn community.About $100 million in collection fees goes from the museum to Yearn's Vault each year.YVault has updated the payment policy. Each time the Vault strategy determines your income, 20% of operating costs are deducted from your income. In addition, a management fee of 2% per year is paid by the entire deposit of the Ministry of Finance. All of these costs are created by diluting church attendees by promoting new products in the church. It is completed when revenue is determined and includes when the final order is completed.

Security performance is measured in the “annual yield” (APY) and is crucial in determining whether income is secure or not. Obviously, each chest will have a different APY depending on the type of tokens available. High-demand stablecoins and management tokens have certain uses. As of v2, users who withdraw money from yVault will not be charged withdrawal fees. Yearn also publishes quarterly financial data on GitHub where users and community members can view yVault's revenue.

Its ability to generate revenue for Yearn Finance is the most developed DeFi protocol. Yearn does not provide user rewards. Strong fundamentals and highways do not lead to price increases for YFI, Yearn Finance's management token. This shows that the difficulty of comparing the process performs well with a good token trading strategy. However, key groups have recently developed strategies to improve the current token market that is embraced by communities.

Fourth, the meaning of yVault: concept

Good investment is at the heart of Yearn's products. In v1, each repository only supports one entry, while in v2, each repository can use up to 20 ideas. This new design is important because it simplifies the process and allows it to be managed well according to different industries. Each strategy has the potential to limit the impact of ideas that can no longer increase APY.

Yearn members now use a total of 242 strategies across multiple sites. For each strategy, there are two actors, a supervisor and an expert, who have the power to monitor the effectiveness of the idea and to act to improve the management or the intervention.After the approval of the YIP-52 proposal, the financial benefits of the Bank were divided equally between the experts and the financial institutions. This motivates hard-working partners to develop the best strategies.

Of course, it is not possible to explain every perfect idea. Some of them are easy to understand. For example, USDC placed in Balancer.fi's DAI-USDC-USDT stable pool based on the concept of USDC yVault (yvUSDC). BAL earnings were collected and sold to several USDCs before returning to the company. Here, a simple knowledge of the equations is enough to understand the potential of the concept. However, things are not always so simple and there is a kind of security that deserves special attention in this regard.

One of Yearn's most prominent infrastructure features is its partnership with Curve.fi. In fact, some yVaults deliver water to Curve Lake and receive CRV rewards by staking LP tokens in their meters. One of the most important bolts is yveCRV-DAO. The vault converts CRV to yveCRV and allows users to receive a portion of the Curve prize, which increases revenue for Curve users. The more CRV conversions, the more rewards each week.

Every Friday, they can request 3Crv (Curve's 3pool LP tokens) from the church. Yearn deposits 10% of earned CRV into BackCratcher and gives 3crv rewards to Vault Token holders, where weekly rewards increase. In this case, the deposit is non-refundable. CRV can only be converted to yveCRV because CRV participates in the Curve permanent voting system.

"Yearn's goal is clear: store as many CRVs as possible to get the highest boost for every volt." -Ben Giove

In the meantime, Yearn is competing with another authority, Convex Financial, to increase the yield of CRV (based on the cost of owning veCRV and the water flow in the pond). The Convex protocol is designed to help Curve and CRV liquidity providers maximize recovery. Similar protests and tensions have raised questions about whether Convex can be considered a viable candidate for Yearn.

Almost eight months after the release of Convex, Yearn does not appear to be alive, but in excellent condition. The simplest answer: Yearn is not just a CRV farmer. For the most part, Yearn's success largely depends on getting his ideas back. Yearn encourages everyone to add value to the token while developing new ideas for other tokens or tokens. These advancements are significant, creating a win-win situation for users, professionals, and Yearn's Vault.

In order to get the latest product safety information, the Yearn team has created a Safety Newsletter. Provides the most up-to-date direct information on the various channels for each vault used by Yearn. In Ethereum, security is divided into four categories: permanent coins, DeFi tokens, crooked pools, and vacations (optional). This encyclopedia has revised its content and will support more languages ​​in the future.

5. Quick Guide: How to use yVault

Yearn's Vault is as simple as it is complex. The good examples we've seen before show that DeFi can be difficult for users without even realizing it. Without a thorough understanding of the concepts involved, it is difficult to assess the benefits of implementing different approaches. However, this difficulty does not affect the use of Yearn, which is very easy to use.

First, connect your wallet and select the public chain using Yearn: Ethereum or Fantom.

The user then selects the vault for deposit tokens to enter and enters the number of tokens to deposit.

Then click on "Approve" or "Deposit" depending on whether it has already been approved or not. The wallet will ask for confirmation of the exchange, which will take around 3 minutes, but can be made faster by loading more fuel.

If the conversion is completed, the user will be able to see the balance in the vault interface, which will appear on the top of the vault list.

When withdrawing money, the user must select a safe place and click "Save". Then enter the amount you want to deduct or click "Max" to withdraw the entire balance. When you click "Delete", your wallet will ask you to confirm the change. If the transaction is completed, the token will reappear in the user's wallet.

Since many Yearn vaults have created reusable Curve Finance Liquidity Provider (LP) tokens (obtained by placing them in the Curve pool), most users do not have the tokens they need in their vaults. To solve this problem, Yearn provides a "zap" feature that converts user tokens to desired tokens for a vault in a single operation.

You can link your portfolio to the stock market research tool to follow the evolution of the value of consumer assets in your vault. The balance does not increase continuously and when the demand function is called, the profits are distributed to the consumers in the bundle of goods, which seems to be low.

Here are the recommended annual budgets to take care of your income from home:

vitriol

Jerion

yVault ROI

tau bolt

Yearn is the "simplest version of DeFi". The new user interface of v3 also offers better understanding and usability. Users start connecting their wallets, clicking the button and encouraging them to earn money. If you believe in the process, the most important thing to assess if the business is working is the APY requirements. However, each strategy has clever implications, so it's good to explore and understand the concepts behind yVault. Members are always available to answer questions and provide information on Discord or Telegram.

6. Evaluation

Why do people use yVault? Of course, for the average DeFi user, it is difficult to create and implement investment strategies like the one launched by Expert Yearn. However, he is well aware that it is too much to put someone else's ideas into practice. The reasons for yVault's success were, among other things, more important.

First, yVault provides users with a certain level of security. Yearn Finance has been robbed in the past to pay victims' debts. In DeFi, risk is always present, but Yearn focuses on smart contract monitoring and mathematical testing to put users at risk. They carefully monitor the process of connecting to a safe environment to avoid financial and economic problems. Yearn developed yAcademyDAO, a community-based approach to blockchain security designed to strengthen security, collaborate on blockchain security, and ensure the technology works.

Second, Yearn earns less money. Operational Vault limits the fuel costs a user may incur if using the same policy. Team Yearn is also working on a commitment to intelligent automation. As stated in the last issue of the Yearn newsletter:

"The scalability should reduce the booking process." The goal is to create an automated system that determines based on data analysis.

Overall, yVault still exists, and all new DeFi products can serve as a basis for new money-making ideas. With a strong and engaging community, Yearn will continue to be an integral part of DeFi in the future!