Yearn Finance Newsletter #55

Week Ending January 26th, 2022

Jan 27

Welcome to the 55th edition of the Yearn Finance Newsletter. Our aim with this newsletter is to keep the Yearn and the wider crypto community informed of the latest news, including product launches, governance changes, and ecosystem updates. If you’re interested in learning more about Yearn Finance, follow our official Twitter and Medium accounts.

Summary

Yearn TVL on Fantom Reaches $1B
State of the Fantom Vaults
Fantom Ecosystem Spotlight - Yearn
Yearn Web Updates
Yearn Finance Explained
Vaults at Yearn
Ecosystem News

Yearn TVL on Fantom Reaches $1B

We are thrilled to announce that total value locked (TVL) across all Yearn products on Fantom have exceeded $1b. TVL in newer Yearn products has seen explosive growth in recent history and shows no signs of slowing down!

State of the Fantom Vaults

With the rise of Andre Cronje & Daniele Sestagalli's new project Solidly ve(3,3), vampire attacks came to Fantom in order to qualify for the Solidly airdrop to the Top 20 projects by TVL on Fantom.

With these vampire attacks, Yearn took advantage and allowed our depositors to earn the highest risk-adjusted APRs on their tokens. We fetched the best yield across 0xDAO, veDAO, Scream, Curve, Beets, Tarot, and beyond. Our Fantom Vaults have strategies for all of them, automatically rotate to the most profitable one and realize profits every 30 minutes so you won't be left holding the bag. Despite the vampire attack campaign recently ending, we'll be on Fantom by your side long after the vampwars become another page in a history manga.

What's your move? Start depositing today at yearn.finance/vaults.

Fantom Ecosystem Spotlight - Yearn

Yearn contributor Tracheopteryx gives a brief overview of Yearn and our mission, with our focus being on everyday users, partners, and builders.

The core products of Yearn are the Vaults, the Iron Bank, Labs, and the YFI/WOOFY tokens. YFI’s origins are further explored, and Tracheopteryx explains why Fantom is the first sidechain that Yearn has chosen to build on.

The interview ends off by mentioning upcoming upgrades to the YFI token, such as buybacks being given to holders, xYFI, veYFI, and vault gauges.

Check out the new full article here.

Yearn Web Updates

This week's Yearn web update includes an APY hover tooltips added to UI and a Dust fix for vault withdrawals

Coming soon are security improvements, with a detailed write-up, improved multi-chain UI/UX, and support for a new chain.

Check out the full new update here.

Yearn Finance Explained

Yearn vaults are yielding IOU tokens built by strategists who undertake a difficult vetting process to ensure that Yearn users are receiving the best risk-adjusted yield in the crypto ecosystem.

One previously used strategy at Yearn can be seen in the v1 Ethereum yVault: When a user deposits ETH the ETH is then lent at MakerDAO as collateral, which is used to borrow DAI that is then deposited into the DAI yVault.

Some common questions users may have are “How/when does Yearn move the funds inside the vault and charge fees?” and “How does Yearn guarantee a strategy to always generate tokens instead of losing them?”. One of the key functions of a strategy is called “harvest”. When called, it triggers a rebalancing process where profit is realized and reinvested back into the strategy. Strategists also use a number of tools to monitor on-chain data to ensure strategy health. One of those tools is Yearn Watch, which presents a nice UI with many of key metrics live on the blockchain.

Yearn and Keep3r additionally have a strong synergy in automating the tasks needed for vaults to maintain their performance. In order to build strategies, you will need a good understanding of Vyper (for yVaults) and Solidity (for strategies). The basic requirements to become a strategist are: knowledge about the blockchain ecosystem you’ll deploy in, which can be acquired by doing in-depth research of tokenomics and documentation for all tokens used in the strategy itself, Solidity programming knowledge similar to completing Level 4 on CryptoZombies, and knowing how to get around git, eth-brownie, and ganache.

After understanding the basics of the above tools you are ready to copy our strategy template! The functions you should start changing in this template in order to build with your own first strategy are prepareReturn, adjustPosition, and liquidatePositon. You can find the strategy template here.

Thank you to MarcoWorms for the writeup which can be found here.