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About Yearn
Yearn Finance is a decentralized yield aggregation protocol that automates DeFi yield farming strategies. Founded by Andre Cronje in early 2020, Yearn pioneered the concept of "Vaults"—smart contracts that automatically deploy deposited assets across various DeFi protocols to maximize returns.
The core product is Yearn Vaults (yVaults), where users deposit assets and the protocol's strategies automatically farm the best yields, compound rewards, and rebalance positions. This saves users from manually moving funds, paying gas for harvests, and constantly researching optimal strategies. Vault strategies are developed by expert strategists who earn a share of generated profits.
Yearn V3 introduced modular vault architecture, enabling more flexible strategy deployment and better risk management. The YFI token is used for governance, with veYFI allowing token holders to vote on protocol decisions. Yearn has become foundational DeFi infrastructure, with its strategies and architecture influencing many subsequent yield protocols.
Key Features
Automated Vaults
Deposit assets and earn optimized yields automatically—no manual management
Strategy Optimization
Expert strategists continuously develop and improve yield strategies
Auto-Compounding
Rewards are automatically harvested and reinvested for compound growth
Multi-Protocol Strategies
Strategies deploy across Aave, Compound, Curve, and more for optimal yields
V3 Modular Architecture
Flexible vault design with multiple strategies per vault and better risk isolation
veYFI Governance
Lock YFI to vote on protocol decisions and gauge emissions
Use Cases
Passive Yield Earning
Deposit stablecoins or crypto and earn optimized yields without effort
Simplified DeFi
Access complex yield strategies through simple vault deposits
Gas Optimization
Share gas costs for harvesting and compounding with other vault depositors
Strategy Development
Strategists can build and deploy strategies to earn performance fees
Protocol Integration
Other protocols integrate yVaults for automated yield on their treasuries
Project Info
Frequently Asked Questions
Yearn is a yield aggregator where you deposit assets into Vaults. Each Vault has strategies that automatically deploy your funds across DeFi protocols (Aave, Compound, Curve, etc.) to earn yields. Rewards are auto-compounded, and strategies are optimized by experts. You receive yTokens representing your share of the vault.
Yearn V3 vaults typically charge a 10% performance fee on yields generated (not on principal). Some vaults may have management fees. Fees fund protocol development and strategist rewards. There are no deposit or withdrawal fees for most vaults.
Yearn has been operating since 2020 with extensive audits and a strong security track record. However, risks include smart contract vulnerabilities in Yearn and underlying protocols, strategy risks, and potential for losses in extreme market conditions. Yearn vaults are not insured—only deposit what you can afford to lose.
YFI is Yearn's governance token with a fixed supply of 36,666. veYFI (vote-escrowed YFI) is obtained by locking YFI for up to 4 years. veYFI holders can vote on governance proposals, direct gauge emissions to specific vaults, and earn protocol fees. Longer locks provide more voting power.
V3 introduces modular vault architecture where each vault can have multiple strategies that are easily added or removed. This improves risk management, allows more granular control, and enables new vault types. V3 also has improved gas efficiency and better integration with other protocols.