Supported DeFi protocols
Yearn Finance


Yearn Improvement Protocol (YIP). Potential YIPs are collaboratively generated by the yEarn Finance community, and are discussed, rejected, or improved upon by YFI token holders and community members providing feedback and suggestions. YIPs are submitted using a certain approved format and method.
Under current governance rules, a quorum of 20% of deposited governance tokens is required to vote on a YIP for it to be considered a valid vote. To pass: a vote on a YIP must have a majority vote of 50%+ of deposited governance tokens voting in favor of the YIP for a YIP to be passed. This democratically community approved YIP is then implemented by multisignature wallet signers in charge of the Smart Contracts behind yEarn Finance


A new type of insurance was invented by YFI Developer Andre Cronje for crypto-assets and crypto derivatives with underwriting provided by Nexus Mutual. It is a prototype for a new type of tokenized insurance. yInsure tokens are liquidity tokens of various types that allow investors to provide liquidity for crypto insurance pools.
Investors who choose to be Liquidity Providers (LPs) of crypto insurance services are rewarded with a share of initiation fees and weekly fees of customers who have sought the cover or hedge against thefts or hacks of insured digital assets that are offered by yInsure.
Andre explains an innovative aspect of this prototype crypto-insurance:
The design of this system allows any asset that has a financial primitive to be insured, be it a base asset such as DAI, or a composite asset such as aDAI or yDAI.


A set of automated liquidation Smart Contracts for Aave that requires zero capital. It is currently being developed in a Testnet.


A Single-sided Automated Market Maker (AMM) that is in production but at a Beta stage of its development.


A cryptocurrency derivative asset class invented by Developer Andre Cronje, a yToken represents a liquidity token that is given in exchange to an investor's deposit(s). yTokens are used in Yearn Finance products for a variety of uses including lending, insurance liquidity (yInsure), and automated optimized yield farming (yVault).
Examples of yTokens include yCRV, yYFI, and yaLINK. These are primary or secondary crypto derivatives of base crypto assets CRV, YFI and the primary crypto derivative aLINK provided by Aave.
This cryptocurrency derivative asset may also be a second cryptocurrency derivative running a Smart Contract atop another cryptocurrency derivative such as aDAI, an Aave USD liquidity token on Aave.


A programmatically adjusted lending aggregator, arbitrageur, and optimized yield farmer. Yearn smart contracts are considered simpler and lower risk than their yVault counterparts. In comparison, yVault smart contracts are considered more complex and higher risk, but in return tend to yield higher ROI.
An example of a complex strategy that can be accomplished by a yVault using a Turing complete program and Smart Contract is the yETH strategy, described as:
  1. 1.
    Lending - Where assets are lent out via lenders such as Aave, Compound, and dYdX.
  2. 2.
    Trading - Assets provided to Uniswap, Balancer, and Curve earn trading fees.
  3. 3.
    Liquidity incentives - Protocols and markets such as Compound, Balancer, and Curve provide liquidity incentives.
By applying the voting power of governance tokens, the power of delegated funds are used to vote for additional incentive rewards for providing liquidity, which can sometimes be reward multipliers for volume users. These multipliers can greatly enhance the ROI of deposited funds.