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

Yield Aggregator

Yearn

Protocol Code Quality

Protocol Maturity

Protocol Design

Risk Rating

green

Good

* [Documentation](https://docs.yearn.finance/) 
 * Auditors 
 	* [Trail of Bits](https://github.com/yearn/yearn-security/blob/master/audits/20210719_ToB_yearn_vaultsv2/ToB_-_Yearn_Vault_v_2_Smart_Contracts_Audit_Report.pdf) 
 	* [MixBytes](https://github.com/yearn/yearn-security/blob/master/audits/20220123_Mixbytes_yearn_strategy_ssb/Mixbytes_-_Yearn_Strategy_SSB_Security_Audit_Report.pdf) 
 	* [Audits](https://github.com/yearn/yearn-audits) 
 * Please see our [FAQ on experienced auditors](https://help.exponential.fi/en/articles/6381015-what-are-experienced-auditors)

Exploit/Hacks

orange

* [Website](https://yearn.finance/)  
 * Token: YFI  
 * Tags: Yield Aggregator

Info

* TVL: $454M (Rank #22)  
 * TVL Ranking by Yield Aggregator: #1  
 * Blockchain: Ethereum, Fantom, Arbitrum, Optimism  
 * Chain TVL  
 	* Ethereum: $334.22M  
 	* Fantom: $16.41M  
 	* Arbitrum: $261.81K  
 	* Optimism: $136.85K

Key Metrics

Information


- Code reviewed by several experienced auditors including [Trail of Bits](https://github.com/yearn/yearn-security/blob/master/audits/20210719_ToB_yearn_vaultsv2/ToB_-_Yearn_Vault_v_2_Smart_Contracts_Audit_Report.pdf) and [MixBytes](https://github.com/yearn/yearn-security/blob/master/audits/20220123_Mixbytes_yearn_strategy_ssb/Mixbytes_-_Yearn_Strategy_SSB_Security_Audit_Report.pdf)
- Anonymous team reduces transparency
- One hack in a prior version of the protocol


- Core protocol launched in 2020; maturity over 2 years minimizes technical risk as smart contracts are amongst the most battle-tested
- Top 1% by total value locked reduces risk
- Decentralized governance increases transparency
- Low voting power concentration reduces risk


- No concerns identified
- Yearn will automatically reinvest any available rewards directed to the pool to help you maximize your yield

Risk Assessment

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

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 we like less

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.

What it means for you

Summary

#### 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.