yEarn Finance Is Turning Every DeFi Trader into a Whale

Key Takeaways

  • yEarn Finance was created as a yield automation tool, but grew into a stack of different DeFi products.
  • The protocol’s most popular product is its vaults, which automated liquidity mining and yield farming strategies.
  • These strategies are enhancing gas efficiency and giving smaller traders a chance to take part in DeFi’s most lucrative opportunities.
  • yEarn is not free from risk, but this has been clearly communicated to the public

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A mini-revolution is brewing in DeFi thanks to yEarn Finance⁠, giving retail investors the chance to participate in the most lucrative yield farming opportunities.

From Humble Beginnings

Crypto Briefing spoke to Andre Cronje about the vision and future direction of the yEarn Finance protocol. But before jumping to the future, here’s a brief look at the past.

The first iteration of yEarn Finance came to life when its creator, Andre Cronje, got fed up with manually moving funds between DeFi money markets to secure the best lending rate. So he built a tool that moved these funds automatically. 

iEarn Finance, as it was then called, was released to the public and almost instantly became a hit amongst the DeFi community.

After a multi-month hiatus, Cronje re-surfaced in July 2020 to build out more use cases for the protocol. The YFI governance token, YFI, was announced and distributed in what is considered to be the fairest token launch since Bitcoin.

YFI Price Action
yEarn’s market cap went from $0 to $500 million in one month, via Coingecko.

What started as a yield aggregation instrument eventually evolved into a platform that supported automated liquidity mining strategies, simple Aave loan liquidations, stablecoins trading with up to 1,000x leverage, and an easy way to short DAI and restore its peg when the stablecoin is trading above $1.

Soon, permissionless insurance will be added to the yEarn Finance machine. Cronje told Crypto Briefing that this is only the beginning. 

Making Yield Farming Inclusive

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