Yearn.Finance is perhaps one of the most interesting concepts in the DeFi world. Many noobs will visit the site and become overwhelmed by all the options Yearn seems to offer… Zap, APY, APR, Vaults, Earn, Cover, etc.
Yearn Finance was a platform started by Andre Cronje, a visionary who built a simple platform that would harness the power of automation and yield farming to get investors the best returns on their investments.
APY (annual percentage yield) is the data table that shows the interest you can earn across the different protocols.
Earn is the tab that shows the highest interest rates that day.
Vaults are the key strategy that collect several different pools and generate the highest returns from them.
Zap allows the user to combine all actions into one click saving on fees and time labor.
Yearn.Finance takes the capital and deploys it on contracts across Ethereum and platforms such as Curve and Balancer, Aave and Compound. The platform supports trading and lending as ways of earning passive income. Users can deposit USDC, DAI, or USDT and zap it to trade it for the vault currencies.
The most significant and interesting part of Yearn, however, is the vault service. It’s essentially an automated mutual fund on crypto and it self manages and executes based on an algorithm that finds the best APY at the moment, and invests the funds accordingly. As of March of 2022, there are well over 50 vaults to choose from and the price of the coin is around 19,000 USD.
With Yearn at the forefront of DeFi innovation it will be interesting to see how the project performs in the future.
