Yearn Finance optimizes DeFi yield farming through products like Vaults and Earn, automating strategies to maximize user profits while minimizing complexity and gas costs. Governed by YFI token holders, proposals for protocol changes start on the Yearn Finance forum and require over 50% YFI holder approval to pass. The revamped tokenomics introduce a Vote Escrow mechanism for YFI stakers. Founded by Andre Cronje, Yearn Finance did not raise funds or reserve tokens, operating uniquely without private or public funding rounds.
Value Proposition:
Yearn Finance is a DeFi platform that optimizes yield farming strategies to maximize profits for users. Yearn Finance achieves this through its core products, including Vaults, Earn, Zap, and Cover, which automate the yield generation and rebalancing process, thereby reducing the complexities and gas costs associated with DeFi investments.
Governance:
Yearn Finance operates a decentralized governance model that empowers YFI token holders to propose and vote on changes to the protocol. The governance process begins with any community member starting a proposal on the Yearn Finance forum. This proposal is then discussed with the community to gauge its viability and gather feedback. Once refined, the proposal is put to a vote, where only YFI holders can participate. The voting power is proportional to the amount of YFI held, and a proposal needs more than 50% of the votes to pass and be implemented into Yearn Finance’s codebase.
Tokenomics:
Yearn Finance's tokenomics revolve around its native token, YFI. The tokenomics were recently revamped to introduce a Vote Escrow mechanism, where YFI stakers can convert their assets into non-transferable veYFI tokens by locking up their funds for periods ranging from one week to ten years
Previous Funding:
Yearn Finance was funded without any private or public funding rounds. The protocol was created and launched by Andre Cronje, who did not raise any funds or reserve any tokens for himself.
