![]() ![]() The Zap tool allows users to swap traditional stablecoins for LP tokens representing stablecoins.Īndre Cronje and his team have other products in the works such as yInsure, a permissionless insurance protocol for DeFi enthusiasts, and StableCredit, which will aid decentralized lending and borrowing like in other DeFi protocols- AAVE and Compound. Only stablecoins and tokenized Bitcoin are supported on Yearn.finance’s Earn. Earn is an abridged version of the Vaults. Yearn.finance also provides other services such as Earn and Zap. The funds deposited are gathered and only one account (the one that controls each vault) pays the transaction fees (gas) to yield the farm. The importance of the Vaults on the protocol is such that they reduce the cost of interacting with Ethereum-based protocols. Yearn.finance also allows users to stake the certificate tokens on other pools. Users are given deposit certificates in form of tokens such as yDAI while they earn yields on the side. When these deposits are made, they are converted to stablecoins and Yearn.finance looks around for stablecoins pools with fewer risks to stake them. Recently, Yearn.finance’s vaults began endorsing deposits of other cryptocurrencies like ether, tokenized Bitcoin products (Wrapped Bitcoin- wBTC), Chainlink, and other coins. finance’s launch, the Vaults were designed to receive only deposits of stablecoins due to their ability to stave off price fluctuations. The funds deposited are managed by a strategy that seeks to maximize yields and reduce risks or losses. Just like most protocols, this feature allows users to deposit cryptocurrency in a pool and earn yields. The protocol’s most pivotal feature is known as Vaults. Yearn.finance may be a DeFi protocol but operates differently. However, Cronje revamped the protocol and rolled out a new set of products for the benefit of users. Yearn.finance’s launch was plagued by an exploit.
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