Yearn V2

Yield Aggregator

Yearn V2 provides tools to maximize DeFi yields through automatic re-investment of incentives, rewards and other types of payouts.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Yearn was first to build upon the concept of yield farming by creating a suite of yield-optimizing DeFi protocols to maximize available yield through automation.
What we like less
The Yearn platform faces greater attack vectors due to the composability of DeFi (if one protocol fails, the entire pool fails) and is not very user friendly given confusing naming conventions for yield-bearing tokens..
What it means for you
Yearn is a one-stop shop for you to set-and-forget your crypto assets by providing the highest yields across many popular DeFi pools via its vault automation strategies.
Information
Exploit/Hacks
One
Info
  • Website
  • Token: YFI
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $277.8M (Rank #47)
  • TVL Ranking by Yield Aggregator: #1
  • Blockchain: Ethereum, Polygon, Optimism, Fantom, Base, Arbitrum
  • Chain TVL
    • Ethereum: $245.98M
    • Polygon: $14.63M
    • Optimism: $12.05M
    • Fantom: $3.76M
    • Base: $1.25M
    • Others: $89.58K
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including Trail of Bits and MixBytes
  • Anonymous team reduces transparency
  • One hack in a prior version of the protocol
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • Yearn will automatically reinvest any available rewards directed to the pool to help you maximize your yield
Things to know about Yearn V2

How Yearn works

Yearn can be thought of as a decentralized asset manager where users deposit their idle crypto assets in various algorithmically managed investment strategies ("vaults") to earn yield. These vaults then strategically invest the user's assets in other DeFi protocols with the goal of maximizing yield across platforms. Yearn achieves this through automatic compounding of token rewards and "profit switching", which means funds are automatically moved between DeFi protocols to always earn the highest interest rates.

How Yearn makes money

Similar to a traditional asset manager, Yearn makes money by charging management, performance and withdrawal fees on its investment vehicles. Yearn currently offers V1 and V2 vaults with the primary distinction being the fees charged. V2 vaults charge a 2% management fee (none for V1) rather than a withdrawal fee (0.5% for V1) in order to better align the protocol's incentives with attracting capital into the system versus exiting the system.

How you make money on Yearn

You generate yield by depositing your asset in a vault strategy. These strategies generally involve depositing the underlying assets to various money market platforms to earn protocol fees and rewards. Your yield can come from lending interest, trading fees, staking rewards, as well as savings on transaction fees from socializing gas costs across all pool depositors.

Yearn V2 Pools
Yearn ETH Staking
5.6%
Yield
$106M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn Tricrypto USDC Market Making
8.2%
Yield
$42M
TVL
Risk
B
Protocol
Yearn V2
Chain
Ethereum
Yearn USD Lending
10.3%
Yield
$17M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn CRV Fee Sharing
45.1%
Yield
$16M
TVL
Risk
B
Protocol
Yearn V2
Chain
Ethereum
Yearn USD Lending
8.1%
Yield
$14M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn USD Market Making
6.7%
Yield
$12M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn Tricrypto Market Making
9.9%
Yield
$6M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn ETH Market Making
17.6%
Yield
$4M
TVL
Risk
D
Protocol
Yearn V2
Chain
Optimism
Yearn ETH Market Making
26%
Yield
$3M
TVL
Risk
C
Protocol
Yearn V2
Chain
Ethereum
Yearn YFI-ETH Market Making
43.4%
Yield
$2M
TVL
Risk
B
Protocol
Yearn V2
Chain
Ethereum