Written by: Footprint analyst Simon
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Footprint Analytics: YFI and BTC price comparison
Yearn was officially launched in July 2020. It is positioned as a Yield Aggregator that can help users automatically and quickly select the best investment strategy, commonly known as the "machine gun pool". It can also help users solve the problem of high gas fees for frequent operations.Curve, MakerDAO, Compound, Convex and other leading DeFi platforms to pursue higher returns with minimal risk.
Yearn currently ranks second in the smart pool category with a TVL of US$5.5 billion, second only to latecomer Convex. After updating the V2 version at the beginning of the year, Yearn launched V3 in mid-September. This time, it mainly updates the front-end user experience, multi-chain deployment, etc. Currently, Yearn is inFantomimage description
Footprint Analytics：Yearn TVL
This article will take the V3 version as an example to explore how Yearn realizes benefits for users.
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Vaults: Multi-Strategy Asset Management
Users can simply deposit assets into Vaults and let Yearn help users manage assets through up to 20 strategies. The incomplete statistics of the projects involved in the Yearn pool strategy include: MakerDAO, Banancer, Aave, Synthetix, LeagueDao, Vesper Finance, Curve, Convex Finance, etc.
Strategies that may be involved include mortgaging the user's assets for other assets before providing liquidity, thereby obtaining transaction fees, or mining other token rewards. Yearn maximizes the income by transferring assets, reinvesting, and redistribution, and finally sells the income obtained and returns the assets deposited by the user back to the user.
Yearn helps users save gas fees for frequent operations by collecting users' assets through strategies, and also charges 20% performance fees and 2% management fees. The APY displayed on the front end is the net APY after taking into account compound interest and expenses. It should be noted that the APY here is estimated data based on historical conditions rather than fixed.
50% of the performance fee collected will be paid to the strategist who wrote the strategy. In order to encourage partners to increase the agreement to integrate yVaults, Yearn will share the remaining income after deducting strategists and about 35% management fees with partners in proportion to the level of contribution TVL, thus forming a positive incentive.
stable currency
MIM, FRAX, alUSD, 3Crv, etc.
Among them, there are 5 pools with more than 100 million US dollars, namely Curve stETH, ETH, DAI, Curve Iron Bank, and USDC.
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Labs: the core of high yield
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Source: Yearn
Since Curve can increase the reward multiple (boost) of a specific pool by up to 2.5 times by locking CRV, Yearn also needs to obtain a large amount of CRV in order to increase the income of its corresponding Curve LP Token pool. Therefore, yeCRV is opened to collect the CRV in the user's hand and store it in the backscratcher. After the user locks the CRV, he will get the certificate of yveCRV. Note that "Lock" is used for depositing here, which means that once the CRV is deposited into yveCRV, it cannot be converted back to CRV.
Just like users directly pledge CRV on Curve, they can also get 50% of all transaction fees of the agreement, and the income obtained will be collected and used to purchase 3CRV and then distributed to holders. However, users will get more benefits in yveCRV, because Yearn will save 10% of the CRV rewards obtained by all vaults in the backscratcher, so that more CRV can be collected to continue to increase the reward multiple of all Curve vaults in Yearn. For yveCRV holders will share the CRV rewards obtained from the entire agreement.
In addition, yveCRV will be more liquid than directly staking veCRV on Curve, because it can be exchanged on Sushiswap itself.
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Iron Bank: Zero Collateral Lending
For Yearn, it is not enough to just occupy the leading position in the machine gun pool, and it has also begun to lay out the lending market. Iron Bank is a loan agreement jointly launched by Yearn and Cream Finance. The loan between the agreements can achieve zero collateral after the credit is granted through the whitelist mechanism. As a user, it is well-knownCompound Similar to over-collateralized borrowing.
Iron Bank supports cross-asset deposits and lending. At the same time, it can also use Alpha Homora's leveraged mining to carry out leveraged operations in the SushiSwap liquidity pool to mine SUSHI, CRV and ALPHA.
At present, there are 32 pools on Yearn, among which pools with hundreds of millions include USDC, DAI, and ETH. The highest lending APY and borrowing APY are CRV, SBX and EURS, but the liquidity of the pools is low.
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Footprint Analytics: Smart Pool Platform Token Market Value
Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy a zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.
The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.
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About Footprint Analytics:
Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy a zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.
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