E&S: YFI, DeFi made simple

Hello Publish0x community and welcome back in my Sunday article dedicated to the Easy and Short. Cryptocurriencies made accessible section.

Have you missed the introductive article of Yearn Finance? Don’t worry you can recover it here.

Today I want to focus the attention on five core products of Yearn Finance:

  • Vaults
  • Governance
  • Zap
  • Earn
  • Cover

Vaults: they are a capital pool that can automatically generate income based on opportunities in the market. Vaults benefit users by socializing natural gas costs, automating the process of revenue generation and rebalancing, and automatically transferring capital when opportunities arise. End users do not need to be proficient in the underlying protocols or DeFi (Decentralized Finance) involved, so the vault represents a passive investment strategy. Currently there are 2 versions of the yVaults.


Governance: The Yearn ecosystem is controlled by YFI token holders, who are responsible for managing and voting on off-chain proposals for the ecosystem. The proposal that generates majority support (more than 50% of votes) is implemented by a 9-member multi-signature wallet. The change must be signed by 6 of the 9 wallet signers to be implemented. The members of the multi-signature wallet are voted and approved by YFI holders and may vary depending on future governance votes.

Zap: A tool that enables users to swap into and out of (known as "Zapping") several liquidity pools available on Curve.Finance. Currently, users can use five stablecoins (BUSD, DAI, USDC, USDT, TUSD) and "Zap" in one of the two pools (y.curve.fi or busd.curve.f) on Curve. Alternatively, users can "Zap" from these two Curve pools and enter one of the five basic stablecoins.

Earn: Yearn's first product is a loan aggregator. As interest rates change between these agreements, funds will be automatically converted between dYdX, AAVE and Compound. Users can deposit funds to these loan aggregator smart contracts through the "earn" page. This product fully optimizes the accrual interest process for end users to ensure that they always get the highest interest rate on the above-mentioned designated platform.


Cover: this is an insurance that enables users to obtain financial loss insurance for various smart contracts or protocols on the Ethereum blockchain. The cover is underwritten by Nexus Mutual.

The release of YFI marks an industry-wide shift in the distribution of coins by cryptocurrency projects. By motivating early users, the project can be quickly adopted and community developed. This is related to the concept of "skin in the game", which implies that those who have a financial or emotional interest in the investment will do their best to make the investment successful.

Yearn.finance is an interesting protocol that is building a unique decentralized financial product. When they hired a team of developers and marketers, the future seemed bright, but only time will tell whether the project can flourish in the Ethereum DeFi field.

Are you trading YFI or have you already earned something from Yearn Finance Vaults or Earn?

Let me know in a comment below and share your thoughts about YFI with Publish0x community!


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MikeZillo Verified Member

Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here https://www.youtube.com/channel/UCvyXx6I1C__zmLAYUXNZwQQ? Telegram: @mikezillo

Easy&Short. Cryptocurrencies made accessible
Easy&Short. Cryptocurrencies made accessible

In this section, we are going to create two article per each cryptocurrency/token. The first one will be technical, with a simplification of the Whitepaper and the second one will be about particulars of the coin. For example staking yields, particular functions and so on! I am sure you will like this very much!

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