Andre Cronje explained how the yEarn Finance took DeFi by storm as it was created by the yield automation tool but grew into the stack of different Defi products as we are reading more in today’s crypto news.
The most popular product of the protocol is its vaults which automated liquidity mining and yield farming strategies which are gas efficiency, giving the smaller traders a chance to take part in more lucrative opportunities. yEarn is not free from risks but it was communicating to the public clearly. The so-called “revolution” is brewing into DeFi thanks to yEarn finance and gives retail investors the chance to take part in the most lucrative yield farming opportunities.
Andre Cronje explained the vision and future direction of the protocol while first saying that the iteration of the project came to life when he got fed up with moving the funds manually between Defi money markets to secure the lending rates. He built a new tool that moved the funds automatically. The platform was released to the platform and became a hit instantly among the Defi community. Cronje then resurfaced in July and built more use cases for the protocol. The YFI governance token was announced and distributed in what is considered to be the fairest token launch since the launch of Bitcoin.
When it comes to making money, there’s this simple rule that the more money you have, the more you can make. The principle explains why banks control traditional financial markets and why the traders named whales control the markets. The product is its automated yield farming contract called vaults and each one allows users to deposit a particular token while the protocol yield farms with it. Yield farming is not too complex for DeFi as you deposit tokens into a contract and then withdraw the collateral in the newly farmed tokens.
A few smaller investors can deposit their tokens in Yearn and the typical process flow is to deposit the tokens into Curve’s yPool then claim the accrued CRV tokens. Traders are looking at total costs in the range of $30 to $90 depending on the gas prices. The value proposition becomes clearer with staking tokens as staking SNX on the protocol is tedious. SNX investors that are not staking their tokens are getting diluted by the inflationary rewards on the protocol.
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