YEARN FINANCE And YFI Token Explained | DeFi, Ethereum


Confused about how Yearn Finance works? And what is the YFI token all about? You’ll find out all of this and more in this video.

Okay, let’s start with what Yearn Finance is all about.

The main element of Yearn Finance is the Yearn protocol.
The Yearn protocol, in essence, is a yield optimiser that focuses on maximising defi capabilities by automatically switching between different lending protocols.

Before we explain the mechanism of the protocol itself let’s see how yEarn came into existence. In early 2020, the author of Yearn protocol – Andre Cronje, started looking into automating his strategy for choosing the highest paying lending protocol for his stable coins.

The protocol, in essence, creates a pool for each stable coin. By depositing a stable coin to a pool, the user receives their yTokens that are yield-bearing equivalents of the coin that was deposited. For example, if a user deposits DAI, the protocol issues yDAI. The DAI that is pooled together can then be moved between different lending protocols to always maximise the yield.
For instance, if Aave offers a better yield on DAI than Compound, the yearn protocol can decide to move all or some of the DAI to Aave. The protocol checks if there is a better yield available at the time a user deposits or withdraws money from the pool, triggering a rebalance of the pool if necessary. If a user wants to withdraw their initial DAI + accrued interest they can redeem their yDAI and receive the underlying DAI.

One thing that the protocol always assures is to never swap the initially deposited stable coin to a different stable coin, even if there is a higher yield available. So for example, if a user deposits DAI, the protocol would never swap it to USDC, even if USDC has a higher yield. This is because most users want to withdraw the same stable coins as they initially deposited.

📖 Post ► https://finematics.com/yearn-finance-and-yfi-explained
🐦 Follow Finematics on Twitter ► https://twitter.com/finematics
💛 Support Finematics on Patreon and join our Discord community ► https://www.patreon.com/finematics

How To Distinguish The Best Forex Trading Strategies

There are wealth of opportunities for a trader to learn to make a hefty profit if they use Forex trading strategies that are tried and proven. There can be some discrepancies in some of the strategies provided and this can be very frustrating. If you have a clear vision of where you are going and how you are going to get there you will find that you can have an edge in this market and you can make a profit rather then taking a loss.

The 7 Trading Commandments

There are many factors to being a successful trader. Many of them are all about how you go about trading. Which makes them some of the easiest yet hardest traits in yourself to catch and change. If you follow these commandment or vows you can be on the right track of making a lot of money.

Review the Best Markets for Day Trading Futures

After making an educated decision on the type of day trading charts I was going to use I now had to begin looking at the different futures markets I was going to trade. One of the main reasons I chose futures as my focus was because of the focused attention on very liquid markets, and at this point I had to now decide which of these markets I was going to focus on. Keep in mind that when I did this process a decade ago, this was much different, but here’s how it will play out in today’s markets.

Methods Of Entry And Exit When Scalp Trading The Stock Market

Before you start to look at stocks and decide whether it’s a good short or long trade, you need to know the methods of entering a position. From my last article I described the level 2 and the definition of adding or taking liquidity, which you will need to understand in order to get this next part. To simplify the methods of entry I am only going to cover 2 at this stage. They are called the momentum entry and the average-in.

Convenient Jobs From Your Home

Working from home is an ideal situation for many people, but it can be hard to find the right job to do that. There are actually quite a lot of jobs out there that can be done from your home, such as e-mini day trading, writing, making phone calls, and designing.

Seven Tips When Choosing Day Trading Charts

It doesn’t matter when you started trading, choosing the best charts for your trading goals is a big issue and should be taken seriously because this is going to be your ‘scalpel’ or your ‘hammer’ when you go to work each day as a day trader. Over the past decade I’ve used good and bad charts, here is what I’ve learned that day traders need most.

Thoughts for Option Trading

From your research you have decided that Options are something you want to pursue as a form of Income. One of the best things about Options is that once you understand them there are so many of them and so many different combinations you can use them in.

Favorite Taylor Trading Method Trades

Day and swing traders use Taylor Trading Technique for several favorite trade set-ups. Traders take advantage of positioning their trades in sync with the ‘ebb-and-flow’ of the Markets identified by Taylor Trading Method ‘3-day cycle’…

Options And Stocks May Be An Option To Avoid Recession

The stock market has been going crazy for the past few years and people are losing a lot of money because of this. Everybody detests losing hard earned money. Our stock brokers will tell where to invest but there’s really no fool-proof plan on how to make your money go up all the time.

Spread Betting Guide: Why Spread Bet?

There are a number of alternative options to spread betting for your trading. Listed in this article are some of the advantages spread betting carries over standard trading.

You May Also Like