What is yearn.finance?

  • Earn which identifies the highest interest rates users can earn lending an asset.
  • Vaults which is a collection of investment strategies designed to generate the highest returns from other DeFi projects.
  • Zap which bundles several trades in one click, saving on costs and labor.

Lending and Trading on Yearn

The main goal of yearn.finance’s services is to enable users to lend or trade their cryptocurrency. Users can then deposit their DAI, USDC, USDT, TUSD or sUSD on the yearn.finance platform to receive those interest rates. Zap allows users to complete several investments with one click. For instance, a user can trade DAI for yCRV (another DeFi cryptocurrency) in one action, compared to three actions across the yearn.finance and Curve platforms. Not only does this save time but also opportunity cost and transaction fees. APY (which stands for annual percentage yield) searches across the lending protocols that Earn uses, and gives the user an estimate for how much interest they can expect to earn, on an annualized basis, for a certain amount of capital. On the other hand, Vaults is yearn.finance’s most complex service allowing users to follow active investment strategies using the platform’s self-executing code. In this way, Vaults are like actively managed mutual funds. You would need some familiarity with Solidity in order to understand how the Vaults operate. However, investing in a Vault is straightforward. yearn.finance’s user interface allows a user to deposit popular coins such as DAI and USDC in each strategy, with each strategy displaying its historical return on investment.



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