So, why convert it only to deliver it in its original format? Good question. However, the deposited coin is delivered to a supported platform like Compound in its original form. For example, if USDT is deposited, the system converts it into yUSDT. Note that all coins deposited on the network are optimized for liquidity mining by changing them into ytokens. Then, deliver the stablecoin to that platform. Yearn’s work is to determine which platforms between DyDx, Aave, and Compound offer the best rates in terms of yields. The network deals in stablecoins such as Tether (USDT) and True USD (TUSD), among others. Fortunately, it’s very easy to understand the functioning of Yearn. The functioning of Yearn.Financeįor newcomers, the mentioning of blockchain, smart contracts, Decentralized Applications (Dapps), or even DeFi, is enough to through them into a panic mode. Apart from earning the token through liquidity mining, the token is listed on some major cryptocurrency exchanges like Binance, and it’s ready for trading. However, there were claims that governance on the platform has been centralized among a few individuals (more on this later).įarming rewards are distributed using the token, which has a hard capitalization of 30,000 tokens. The YFI token follows Ethereum’s ERC-20 standards and enables community involvement in the platform’s governance issues. While this increases the risk, it also increases the yields since different yield farming systems have different earnings ratios.
The protocol works by taking user funds and distributing them to other DeFi-based platforms such as Aave and Compound. The project leverages the power of the Ethereum (ETH) blockchain. The platform rewards users for providing liquidity or depositing their virtual currency on the platform to ignite lending. Yearn is a decentralized protocol aimed at powering blockchain-based finance, commonly referred to as decentralized or distributed finance. Cronje has a computer science background, and his experience spans from big data, financial technology (Fintech), distributed ledgers, to insurance. Yearn (YFI) is the brainchild of Andre Cronje, a computer programmer.
Before we look at the basics of the platform, let’s look at its team.
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