“We’ll take care of everything for you, you simply check in and see your portfolio grow.”
So says Andre Cronje of Yearn Finance, a decentralized financial (defi) platform that has suddenly risen to prominence following a rush to get some YFI tokens which were launched just this Sunday.
Version 2 of Yearn Finance “is designed to be gas efficient for small yield farmers, allowing deposits and withdraws as low as ~$2 even at 100 gwei,” Cronje says.
He describes three components. yVaults, which are kind of pools for strategies. Anyone can submit strategies, although there is a governance model of sorts with a controller.
And so this pooled liquidity can implement strategies and move funds around to yield farm with you having a proportional share depending on how much you deposited. Cronje says, and we quote at length:
“Strategies are simplistic containers, they specify what they ‘want’, and their job is to maximize returns on that asset however they can, in a lossless way.
The system is designed to be gas efficient for small yield farmers, allowing deposits and withdraws as low as ~$2 even at 100 gwei.
Strategies can be submitted by anyone, we do have a predefined list of strategies we consider to be the current optimum in the market. A strategy can receive rewards from any additional sources other than its core function (DAI => aDAI for example).
These additional rewards are split between the governance ecosystem, the yield farmers, and the strategy creator. So if your strategy is selected as the highest performing strategy, you receive funds every time the system receives rewards.
So if you ever find this ecosystem too complex, or too time consuming, or simply too expensive (gas fees), then you can use yearn.finance v2.
We’ll take care of everything for you, you simply check in and see your portfolio grow.”
Significantly exaggerating, Julien Bouteloup, a long time ethereum developer, publicly said in regards to the above:
“Satoshi gave up His only begotten Son Andre unsparingly in order to give us this good DeFI.”
Maybe, with Andre appearing to be anon himself. Whether this dapp update does what it promises, however, remains to be seen, but new business models and new finance is clearly taking form.