Liquidity aggregator yEarn, which launched the YFI token on July 17, is preparing to release a new version of their platform, according to an announcement published on July 24.
yEarn.finance v2 will launch in 3-4 days, and bring the following improvements to the protocol:
- yVaults
- Controller
- Strategies
yVaults will let users deposit DeFi tokens and yEarn’s yTokens through interest. This is a specific vault called the delegated yVault. For example, users can deposit Chainlink (LINK) to generate yDAI. Other supported assets are Aave (LEND), Ren (REN), Synthetix (SNX), and wrapped Bitcoin (wBTC).
The controller is a control mechanism, the responsibility of which handed to the governance community with the update. The team describes the change as being “a subset of governance selected to manage will assign the highest yield strategies on a per vault basis.”
The last of the new introductions is perhaps the most important for the growth of the platform, as it squares its focus on beginner DeFi investors. It is designed to be gas efficient for small yield farmers and will focus on bringing maximum returns.
Anyone can submit strategies and be rewarded for doing so. The rewards are divided between the governance ecosystem, the yield farmers, and the strategy creator. With strategies, new investors who find yield farming too complex utilize the expertise of seasoned traders to maximize returns.
yEarn is yet another protocol that has left an immediate impact on the DeFi market. Its major product, yEarn.finance, automatically moves users’ funds between lending pools that have the best interest rates. Currently, it supports Compound Finance, Aave and dYdX.
Investors quickly flocked to yEarn finance, the result being that the YFI asset rose 80x to a value of over $2,300. Annual Percentage Yields (APY) at time stood at nearly 1000%, an abnormally high return. However, the interest in the protocol appears to be waning, with locked in value from the past days dropping from its peak of $345 million.
