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What is Yearn.finance (YFI) and how does it work?

One of the fastest growing DeFi projects, Yearn.finance has spawned a range of core products that provide passive earnings on crypto assets.

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One of the fastest growing DeFi projects, Yearn.finance has spawned a range of core products that provide passive earnings on crypto assets.

Launched in July 2020, Yearn.finance has emerged as one of the major players in the emerging decentralized finance (DeFi) space that provides services such as staking, lending aggregation and yield generation on the Ethereum blockchain. Boasting the most user-friendly crypto trading services that are being meted out autonomously, the project uses its native ERC-20 Yearn Finance (YFI) cryptocurrency to incentivize those who lock their crypto tokens in Yearn.finance contracts through any of the supported platforms such as Balancer and Curve DeFi.

With all of its protocols operating on the Ethereum blockchain, Yearn.finance is managed through developers that act in accordance with governance proposals voted for by YFI holders. Crafted with the vision of simplifying the process of investing in DeFi products, the Yearn.finance platform also offers its users the ability to invest in other DeFi protocols in addition to earning a percentage of the platform’s fees in proportion to their YFI holdings. 

Who is behind Yearn.finance?

A veteran of the cryptocurrency and DeFi space, Andre Cronje launched the Yearn.finance protocol without raising any funding either through public or private means. Instead, the software architect relied on his over two decades worth of software development experience to launch the protocol first and then issued YFI tokens to retail investors, which are currently limited to a maximum supply of 36,666 tokens. 

Apart from the extremely rare approach adopted by Cronje, the Yearn.finance platform has benefitted from his previous experience as the founder of the Keep3r Network and his association with notable DeFi projects that include the likes of PowerPool, Hegic, Cover, Pickle, Cream V2, SushiSwap and Akropolish, among others. Unlike other founders, Cronje didn’t reserve any YFI tokens for himself prior to the Yearn.finance protocol’s launch, believing that a truly decentralized blockchain technology-based platform should not have the founder hanging on and dictating its future course. 

In fact, the history of Yearn.finance can be traced back to his efforts over the past five years to launch cost-effective financial products for the unbanked segment of the world’s population and has been heavily influenced by his efforts in Africa toward achieving the same. By choosing to focus on creating value for the entire DeFi ecosystem of developers, partners and investors on the Yearn.finance platform, Cronje has provided scores of crypto entrepreneurs with a new perspective on how to build DeFi products for the masses. 

 What is Yearn.finance (YFI) and how does it work? 

Built on the Ethereum blockchain, the Yearn.finance protocol eliminates the need for a financial intermediary like a bank and offers crypto investors and tokenholders access to its range of lending and trading services that include Vaults, Zap, Earn and APY. The Yearn.finance protocol can deploy its smart contracts on the Ethereum blockchain as well as other decentralized exchanges that operate on it. Offered through a simplified web interface, Yearn.finance is a radical experiment in the DeFi world and has one sole aim- to maximize returns on crypto assets for its users. 

The most complex among its products is the Vaults product, which acts as a mutual fund of sorts and has 50+ different vaults or staking pools for Yearn.finance’s users to deposit their tokens in. These Yearn.finance vaults are basically investment strategies in other DeFi projects like Convex Finance and Compound Finance, with pre-programmed logic deciding when to shift capital and code automation deciding the yield generation and rebalancing process. Users additionally benefit from the lower gas costs and low transaction fees levied by Yearn.finance on each vault-related transaction.

The Earn product, Yearn.finance’s first product, relies on the interest rate changes on the Aave, dYdX and Compound protocols to let its users benefit from the best interest rates at all times. A lending aggregator, in principle, Earn allows Yearn.finance’s users to allocate their crypto tokens to either or all of these liquidity protocols and earn higher interest rates than that provided by traditional finance instruments. For those invested in stablecoins such as Binance USD (BUSD), USD Coin (USDC), Tether (USDT), TrueUSD (TUSD) or Dai (DAI), the Zap product enables them to swap between liquidity pools on the Curve Finance platform and deposit into any of Yearn.finance’s vaults using almost any token on a single click. 

How does “Earn” a lending aggregator works in Yearn.Finance

This results in not only cost and time savings but also simplifies the entire task as many individual trades are coupled with Yearn.finance’s coding. The platform also provides its annual percentage yield, or APY, tool that compiles the interest rates offered by the various DeFi lending protocols at a glance, thereby helping crypto investors in narrowing down on the right platform for further investing. 

What can you do with Yearn.finance?

The Yearn platform has something for everyone-investors, developers and even other DeFi projects that are interested in partnering with Yearn.finance. For crypto investors, the Earn, Zap and APY products help them to lend their crypto holdings or trade them for short-term yields, all in an effort to bolster their chances of earning a passive income. Zap and APY effectively improves the user experience when they use the Earn product, essentially a yield farming tool, to earn the highest interest rates across the Aave, dYdX or Compound lending protocols. 

The Yearn.Finance model

Vaults, on the other hand, introduces users to a revolutionary way of actively investing using Yearn platform’s self-executing code, mimicking how traditional mutual funds operate to extract the best return for their investors. By using the Yearn.finance platform to run its smart contracts on the Balancer and Curve DeFi trading platforms, users can enjoy all aspects of a yield optimizer without having to worry about the internal workings. In this way, Yearn.finance is also a DeFi yield aggregator, but with a design that is simple, intended to maximize investor returns and works for the benefit of all YFI tokenholders.

Written in the Solidity programming language, users with a fair knowledge of this language can even transparently see how the code for each vault invests the lent tokens further into different DeFi protocols. For developers, Yearn.finance offers the functionality of creating custom vault strategies that then undergo a peer review, testing in a production environment and going live once the Safe Farming Committee provides its approval. The Yearn platform details the various procedures that are needed to be followed by developers, including naming conventions and operating procedures for these smart contracts. 

For other DeFi projects, Yearn.finance has displayed a rabid enthusiasm for collaboration as the platform strives to build a DeFi future where everyone can access any service or protocol from anywhere. Furthermore, Yearn.finance joined forces with the layer-2 Optimism protocol in August 2022 and is an example of its inclination toward building cross-chain interoperability and working toward improving capital efficiency for its users.

Is Yearn.finance secure and is YFI a good investment?

By virtue of providing YFI tokenholders the right to vote on community-submitted proposals, Yearn.finance has all the trappings of a truly decentralized DeFi project that prioritizes the tokenholders’ interest above all else. Known as Yearn Improvement Proposals (YIPs), any member can start a YIP on Yearn.finance’s governance forum and if a majority number of the members support it, the YIP will be put ahead for official voting through the YFI governance staking model. 

All YFI holders are eligible to vote on these YIPs, whether it be about a new vault, changes to the governance mechanism or even suggesting changes to the current fee structure. However, as admitted by founder Andre Cronje, DeFi involves risk and had even quit the space briefly before getting back to launch the Yearn platform. That being said, despite all efforts to ensure that the Yearn platform functions transparently, users do face a moderate risk of facing losses caused by volatile market conditions. The YFI cryptocurrency too is subject to trading fluctuations, changing market sentiments and speculative activity by large institutional traders

That said, as has been seen with various blockchain projects that have been successful over a period of time, investors may choose to hold onto their YFI holdings to potentially benefit from long-term price appreciation. With the peak total value locked (TVL) in the Yearn.finance protocol reaching a high of $6.91 billion, the Yearn platform is counted among the fastest-growing DeFi protocols in existence. Considering the range of benefits it provides and the honest nature employed in its governance model, Yearn.finance can be counted among the most significant DeFi investment platforms to have emerged in the post-pandemic era.

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Government

Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

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The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

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