Yearn Finance is a "deposit your crypto here and we'll go farm it for you to get you the best returns" — hands off money manager if you will.
✅ Active community
✅ Active team
✅ Billions $$ of liquidity
✅ Decentralized, DAO
Why Use Yearn Finance? 🤔
- It's a free crypto money manager.
- Kind of like a hedge fund. (pooled funds)
- Yearn uses DeFi apps and yield farming strategies to maximize user's returns for them.
- Since its algorithms that move your funds around = robot money manager.
- Yearn supports many assets from stable coins to ETH.
- Yearn also maximizes any deposits you have in the Curve
Why Crypto Mutual Funds? 🤔
- People pay good money in the real world to be included in hedge funds with good track records.
- Instead of keeping up with DeFi and farming strategies, let mutual funds do that for you.
How Does It Work? 🤔
- Yearn offers vaults for different crypto assets (i.e DAI vault, ETH vault...)
- Each vault has 1 or more yield farming strategies to earn $$$.
- Strategies use other DeFi apps to lend, farm tokens, and maximize each vault's holdings.
- Yearn charge a 2% management fee, and 20% on all profits a vault generates for you.
What Is The $YFI Token Used For?
- $YFI is an ethereum based token which holds voting power in the Yearn Finance governance.
- Changes to the protocol are voted on by $YFI holders.
WTF is $WOOFY coin?
- The community heard the complaints that the main Yearn Finance token $YFI seemed "too expensive" for someone to own a meaningful amount.
- So a derivative of the main coin was made, in the form of a derivative token called "WOOFY".
- 1 WOOFY can be scooped up for just pennies, but its value is forever tied to $YFI.
- WOOFY's price is fixed to that of $YFI, at a rate of 1 YFI = 1,000,000 WOOFY
- Anyone can redeem their WOOFY for $YFI, or vice versa using THIS WEBSITE.
- Has vaults for many crypto assets and adding more.
- Auto Compounds your Curve Liquidity Provider positions to boost Curve rewards.
- Is decentralized (DAO) so strategies and changes are managed by the community.
What Are The Risks Of Using Yearn?
- Bugs, exploits in the smart contracts, are always possible.