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Why did Yearn become the top stream in DeFi? A brief analysis from the dimensions of underlying assets and governance



After $YFI came out, it quickly became the top of DeFi and swept the entire DeFi encryption circle. What kind of energy is hidden behind Yearn Finance?

If DeFi is compared to a Lego game, then the underlying cornerstone of the Lego game is Yearn Finance, and the underlying assets such as USDT, USDC, DAI, and ETH are controlled by Yearn. Similar to using yETH as an example, the flow direction is Yearn (ETH)-> Maker(DAI)-> Aave (aDAI)-> Curve (yCRV)-> 4 assets were counted 3.5 times on 4 platforms, but breaking through the fog, we will find that the underlying assets remain in Yearn. The rankings of Aave, Compound, and Curve are largely determined by Yearn. Moreover, these underlying assets do not have high leverage. The principle of leverage is to repeatedly pledge and borrow to do long assets. Most of Yearn’s assets are coin deposits and mining. yETH uses Maker, but it is not long ETH, but only pledges ETH to do DAI mining. , there is no leverage, so yearn, which is the underlying asset of DeFi Lego, is very safe.

Yearn's assets in all products exceeded US$5 billion: Fang News, Yearn.Finance announced that Yearn's assets in all products exceeded US$5 billion. [2021/6/14 23:35:07]

The strength of Yearn Finance lies in its DAO governance. The fair and just DAO has brought together countless insightful governance proposals. The reason behind this is that the distribution mechanism of $YFI tokens is the fairest so far. After Compound started token mining, $ YFI has made the token distribution model to the extreme. In fact, behind the mining is the equity. The project party selflessly gives all the tokens (which imply top-level permissions such as governance and income) to those who support the project. $ YFI fully distributes the currency to users who deposit the underlying assets, help market making and participate in governance. But $YFI may also be the last truly fair project. The projects born after that are more often manipulated by exchanges or whales with large capital pools, and have lost their fairness since their birth.

The Cover Protocol community is verifying the Yearn Finance claim process. The claim ratio is 36%. On February 10, the DeFi insurance protocol Cover Protocol officially released a Yearn Finance claim briefing. According to the brief, Yearn Finance filed a claim on Feb. 4 in connection with the v1 yDAI vault attack. A total of 409,722 DAI was staked at the time of claim acceptance. The current status of this claim is: being verified by the community and CVC. The claim payment ratio is 36% (partial payment), that is, 1 claim token can be exchanged for 0.36 DAI. Claim payment time is 7 days (including 2 days delay). According to previous news, the yearn v1 yDAI vault was attacked, and then Cover opened a vote on whether to provide insurance for the Yearn vulnerability. [2021/2/10 19:27:39]

The creator of Yearn Finance, Andre Conje, comes from Goldman Sachs with 20 years of fintech engineering experience. Different from the current public perception that Yearn is only independently developed by Andre, the fair and just charm of DAO on Yearn has attracted a large number of top talents from all over the world to join. Here are just some introductions for non-anonymous or semi-anonymous people, bantg - a well-known figure developer in the anonymous Ethereum community, milkyklim - a German data scientist, orbxball - a Ph.D. in computer science - graduated from Cornell University, fubuloubu - Ethereum development language Vyper Main maintainer of open source project, devops199fan - well-known figure in anonymous Ethereum community, AzeemFi - top investor, Vance Spencer - co-founder of Framework Venture Capital, Yearn is built by participants from all over the world, Andre Conje is just the founder of Yearn project Creator. re-releases v1 ETH yVault: tweeted the re-release of v1 ETH yVault, a vault that has been reworked to meet the high demands that v1 yVault encountered. In addition, said there is a buffer for withdrawals and more efficient debt management. Slippage protection will alleviate users from suffering from unusually large slippages. This vault uses ETH to mint DAI from Makerdao, and obtains CRV from Curve Finance's 3pool. [2021/1/29 14:19:13]

When other project parties are still struggling to study the Yearn Finance insurance strategy, Yearn Finance has aggregated insurance and NFT, and sold out the insurance products on the market; while other project parties are still struggling to study the Yearn Finance Smart Pool When it comes to strategy, Yearn has already begun to combine smart pools and options, opening the next era of financial management. Yborrow combines credit loans with financial management, Yliquidate combines flash loans with liquidation, and the yVCVault community spontaneously forms VC funds to help Yearn. Yearn Finance is like a hive. Countless talents help him build innovative modules. In the future, we may only see When it comes to every grid on the hive, it is difficult to interpret his core, especially when these businesses are combined. Removed the 1-day APY value. Some yields can only be displayed after 24 hours: tweeted that from the feedback received, some users were confused about this. It's because did some data update and deleted the 1-day APY value. Under the current gas price, some yields can only be displayed after 24 hours, so in some specific time periods (holding amount and holding amount) may be displayed as 0, we recommend monitoring for more than one month. [2020/9/18]

Yearn new interface design display (not the final version)

Yearn's governance is one of the fairest governances. According to statistics from etherscan, $YFI locked 22.7% of assets in governance DAO, centralized exchanges locked no more than 7%, and decentralized exchanges locked no more than 15% , the current participation in governance income is about 20%, which proves that Yearn itself also empowers itself. Under the current price and yield, P/E is already in a reasonable range. In the general sense of token distribution, exchanges occupy the top five. Such a model is difficult to form real governance, and the lifeline is already in the hands of exchanges.

YFI distribution map

First of all, Yearn’s Token $YFI is an essential component of every mining project. $YFI represents the spirit of DeFi and must be paid tribute to. Secondly, Yearn has deposited nearly 1 billion US dollars in underlying assets, among which the classic representatives YUSD and yETH have become assets that must be connected to major platforms, that is, mining assets. For example, the Cream platform has access to YUSD, yETH, yCRV and other assets, and Fortube has also access to YUSD, yETH and other assets, especially yETH, WETH with financial attributes, the future prospects are limitless.

The future of Yearn Finance is something that no one can predict. Every Yearn is a different Yearn. The future of Yearn may only be described by the famous saying of Yearn - Few understand.

Original Title: "Interpretation of the Yearn Finance Ecosystem" Author: Lin Ming, co-founder of FirstPool


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