12/6/2023 0 Comments Yearn yfi vaultThe APR of the strategy is mainly based on overall performance of the Yearn finance protocol, as the strategy deploys its underlying capital to all vaults on the protocol. Confused about how Yearn Finance works And what is the YFI token all about You’ll find out all of this and more in this video. Using a multi-tokens as a collateral diversifying the strategy is a burdensome way of doing so, but however similar goal can be achieved in a from of index find where a single token is swapped to various underlying tokens and a yield is generated upon it. A strategy works in a way of accruing the amount of token, thus limiting the flexibility of the strategy. The Vault withdrawal fee is removed, and replaced by a 2 management fee. The current vault&strategy works only and if only a designated token is deposited. This proposal reforms Yearn’s fee structure to keep it roughly at the same level, but charged differently, and distributed in a way meant to keep YFI stakers, strategists, and contributors better incentivized over the long term. Maximizing the yield-farming experience.The “Yfi Index” strategy uses $YFIF as collateral and allows the user to experience yields from various vaults upon the protocol, thus creating a utility base value proposition of the token. The value of the token can be derived in diverse ways, and imposing a utility upon the token is a good way of doing so. Like many other defi products, the governance token $YFI lacks value in terms of utility as it only serves as means of voting. Additional value proposition of the governance token.The value proposition of the $YFI can be extended by adopting the “Yfi Index” strategy. Such a predetermined aspect of the protocol assures the depositor to pursue yields from well-established strategies, moreover minimizing the risk of using Defi protocol.įurthermore, such vault&strategy imposes utility to the governance token $YFI, creating a utility-based demand power. By doing so, the depositor can expose their capital to various vaults already deployed on the Yearn Finance, which have gone through a strict due diligence process of the Yearn Finance governance. The intention of this vault is to let users thoroughly experience yield-farming function of the yearn finance by leveraging all strategies. In terms of withdrawal, the designated amount is withdrawn from the strategy and converted back to $YFI for withdrawal. For that, $YFI is swapped to underlying tokens of the vault before distribution and accumulates its value on the changed token. The strategy accepts only $YFI as collateral and distributes the collateral to all vaults by on the Yearn Finance. The basic form of the vault can be understood with the format of an Index fund from traditional finance, which is an investment vehicle that deploys its capital on various products and creates a basket. We introduce a new vault with the “Yfi Index” strategy, which deploys its capital on various vaults on operation. The strategy will work as a form of Index and depositors will be exposed to all profitable/possible loss opportunities among the protocol. ![]() The “Yfi Index” strategy is in charge of deploying $YFI into all vaults of the yearn finance and to earn yields.
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