Yearn Finance, a decentralized finance (DeFi) project, is set to introduce a new feature that will allow users to create their own vaults to accrue yield and deposit proceeds to earn additional token rewards. This move is aimed at expanding the platform’s offerings and giving users more control over their DeFi activities. However, Yearn will charge a 10% performance fee for this service, which is in line with the project’s revenue model.
DeFi, short for decentralized finance, refers to financial activities carried out on a blockchain without the need for traditional middlemen. Yearn Finance has been a popular platform in the DeFi space, offering users the opportunity to earn yields through various investment strategies. With the introduction of the permissionless vault factory, users will now have the ability to create their own strategies and offer them on the Yearn platform for other users to deposit their tokens and earn yields.
The introduction of permissionless vaults is expected to increase Yearn’s user base and attract more liquidity to the platform. Currently, Yearn has over $360 million in total value locked, with 24 active vaults offering yields ranging from 1.3% to 17% annualized. These vaults use crypto deposits to generate yield through participation in DeFi applications such as lending, borrowing, and trading.
Initially, users will be able to create vaults for the liquidity tokens of Curve Finance, a stablecoin swapping application. These vaults will utilize veCRV, a time-locked token issued by Curve, which allows users to enhance their yield rewards. Curve has generated $100,000 in fees in the past 24 hours, which are distributed to users and liquidity providers. The permissionless vaults are part of Yearn’s broader V3 plan, which aims to make the platform fully decentralized in the future.
In conclusion, Yearn Finance’s move to introduce permissionless vaults is a significant step in the decentralization of the platform and the empowerment of users in the DeFi space. By allowing users to create their own vaults and offer them on the platform, Yearn is opening up new possibilities for earning yield and attracting more liquidity. With a strong user base and a diverse range of active vaults, Yearn Finance is poised to continue its growth and success in the evolving DeFi ecosystem.
Discussion about this post