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Difference between revisions of "Yearn Finance"
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== History == | |||
Yearn Finance (YFI) is a decentralized finance protocol which began in early 2020 under the name iEarn Finance which was maintained by [[Andre Cronje]]. Originally iEarn Finance was a series of yield bearing tokens which rebalanced to the [[lending markets]] with the highest yield (usually [[Aave|AAVE]] or [[Compound]])<ref>https://thedefiant.io/what-is-yearn-finance/</ref>. During [[DeFi Summer|DeFi summer]], the protocol released a fair-launched governance token called [https://www.coingecko.com/en/coins/yearn-finance YFI] and rebranded to Yearn Finance. The launch is credited to have birthed the concept of Pool 2<ref>https://www.coindesk.com/markets/2020/12/08/andre-cronje-defi-expressionist/</ref>, it took place on [[Curve Finance]] and [[Balancer]]. Today the protocol is maintained by various independent developers and contributors of the Yearn DAO and it is governed by $YFI holders. | Yearn Finance (YFI) is a decentralized finance protocol which began in early 2020 under the name iEarn Finance which was maintained by [[Andre Cronje]]. Originally iEarn Finance was a series of yield bearing tokens which rebalanced to the [[lending markets]] with the highest yield (usually [[Aave|AAVE]] or [[Compound]])<ref>https://thedefiant.io/what-is-yearn-finance/</ref>. During [[DeFi Summer|DeFi summer]], the protocol released a fair-launched governance token called [https://www.coingecko.com/en/coins/yearn-finance YFI] and rebranded to Yearn Finance. The launch is credited to have birthed the concept of Pool 2<ref>https://www.coindesk.com/markets/2020/12/08/andre-cronje-defi-expressionist/</ref>, it took place on [[Curve Finance]] and [[Balancer]]. Today the protocol is maintained by various independent developers and contributors of the Yearn DAO and it is governed by $YFI holders. | ||
The current user-facing core product of Yearn is yVaults, which provides [[Yield optimizer|automated yield generation]] to many different crypto assets, each driven by one or more Strategies. | The current user-facing core product of Yearn is yVaults, which provides [[Yield optimizer|automated yield generation]] to many different crypto assets, each driven by one or more Strategies. | ||
== Yearn Vaults (yVaults) == | == Design == | ||
=== Yearn Vaults (yVaults) === | |||
The short way to name a Yearn Vault is yVault. In Yearn’s current version (v2) these are the characteristics of a yVault: | The short way to name a Yearn Vault is yVault. In Yearn’s current version (v2) these are the characteristics of a yVault: | ||
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* yVaults tokens implement the [[ERC20]] standard, this means that they can be easily moved between wallets and markets and can be used by any app that communicates with this standard (like [[decentralized exchanges]]) | * yVaults tokens implement the [[ERC20]] standard, this means that they can be easily moved between wallets and markets and can be used by any app that communicates with this standard (like [[decentralized exchanges]]) | ||
== Strategies and Strategists == | === Strategies and Strategists === | ||
Strategists are people that build one or more underlying Strategies for yVaults | Strategists are people that build one or more underlying Strategies for yVaults | ||
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* Over the year 2% of the vault’s total assets are taken as fees which go to Yearn to pay for expenses like gas, developer grants, and other services. | * Over the year 2% of the vault’s total assets are taken as fees which go to Yearn to pay for expenses like gas, developer grants, and other services. | ||
== YFI token == | === YFI token === | ||
In July 2020 the YFI token was introduced as a way for Andre to decentralize control of Yearn by distributing 30.000 YFI tokens. The 30.000 YFI would be distibuted only to uses who provided liquidity on Yearn. With no pre-mine, no pre-sale, and no allocation to the team, YFI set a standard for the most decentralized token launch (Fair Launch).<ref>https://medium.com/iearn/yfi-df84573db81</ref> Another 6.666 YFI were minted by [https://gov.yearn.finance/t/yip-57-funding-yearns-future/9319 YIP-57] in order to fund Yearn's future, so the total supply of YFI is 36,666. | In July 2020 the YFI token was introduced as a way for Andre to decentralize control of Yearn by distributing 30.000 YFI tokens. The 30.000 YFI would be distibuted only to uses who provided liquidity on Yearn. With no pre-mine, no pre-sale, and no allocation to the team, YFI set a standard for the most decentralized token launch (Fair Launch).<ref>https://medium.com/iearn/yfi-df84573db81</ref> Another 6.666 YFI were minted by [https://gov.yearn.finance/t/yip-57-funding-yearns-future/9319 YIP-57] in order to fund Yearn's future, so the total supply of YFI is 36,666. | ||
As the governance token of Yearn, the YFI tokens allow holders to vote on various decisions proposed by community members. Starting with Yearn improvement proposal 36 ([https://yips.yearn.finance/YIPS/yip-36 YIP-36]) a portion of staking rewards were used to cover operational expenses and reward token holders. [https://snapshot.org/#/yearn/proposal/Qmb6gBzjvgLMazSrQQGVcjutLNdkVyM2Lh6yckMzdoaHWZ YIP-56] disbanded the staking system in favour for a buyback system. [https://medium.com/iearn/yearn-governance-explained-proposals-yfi-token-and-execution-113ec86c3a3f Check this article for more information about governance at Yearn.] | As the governance token of Yearn, the YFI tokens allow holders to vote on various decisions proposed by community members. Starting with Yearn improvement proposal 36 ([https://yips.yearn.finance/YIPS/yip-36 YIP-36]) a portion of staking rewards were used to cover operational expenses and reward token holders. [https://snapshot.org/#/yearn/proposal/Qmb6gBzjvgLMazSrQQGVcjutLNdkVyM2Lh6yckMzdoaHWZ YIP-56] disbanded the staking system in favour for a buyback system. [https://medium.com/iearn/yearn-governance-explained-proposals-yfi-token-and-execution-113ec86c3a3f Check this article for more information about governance at Yearn.] | ||
== Links == | == External Links == | ||
* '''Website:''' https://yearn.finance/ | * '''Website:''' https://yearn.finance/ | ||
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* '''Telegram:''' https://t.me/yearnfinance/ | * '''Telegram:''' https://t.me/yearnfinance/ | ||
== | == References == | ||
<references /> | <references /> | ||
[[Category:Protocols]] | [[Category:Protocols]] | ||