Yield Aggregator

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

Risk Rating
Protocol Code Quality
Protocol Maturity
Protocol Design
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.
  • Website
  • Token: YFI
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $461.5M (Rank #20)
  • TVL Ranking by Yield Aggregator: #1
  • Blockchain: Ethereum, Optimism, Fantom, Arbitrum
  • Chain TVL
    • Ethereum: $436.4M
    • Optimism: $13.79M
    • Fantom: $11.18M
    • Arbitrum: $124.25K
Risk Assessment
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 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
Protocol Design
  • No concerns identified
  • Yearn will automatically reinvest any available rewards directed to the pool to help you maximize your yield
Things to know about Yearn

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 Pools