Defi pool yEarn is on a roll as the most profitable yield farming machine returns a whopping 1000 percent annual percentage yield.
The automated market maker of yEarn provides a solution to many problems faced by yield farmers. Recently, yEarn introduced a governance token that helped it democratize governance procedures. It comes with zero pre-mine characteristics, holds no relation to the protocol makers, and represents true decentralization.
The token launch has been highly lucrative to the investors as they are currently enjoying a 1000 percent APY from the pool.
DeFi pool yEarn delivers impressive performance
The DeFi space is delivering incredible returns so far this year. Previously known as iEarn, the company’s yield aggregator redirected tokens towards superior lending opportunities and therefore helped boost interest rate profits.
Current Yield to Mine YFI hovers around 580 percent APY – Source Curve
Recently, the DeFi pool yEarn entered yield farming and hasn’t looked back ever since. As a consequence, the returns have dwarfed all the other protocols. The interesting product lineup has attracted a range of clients. It allows liquidation of under-collateralized loans from Aave, DAI shorting tools with peg restoration feature and an automated market maker.
Direct comparison with Compound
As the DeFi pool yEarn makes waves, the platform’s comparison with Compound becomes ominous. Rated highly valuable, Compound works differently as yield farmers earn interest besides the COMP rewards. They further increase the returns via BAL mining rewards and liquidity provision charges.
However, the consequent interest, BAL rewards, and COMP all contribute towards the joint Compound pool earnings instead of the yield farmers. It happens because the liquidity pool treats both cBAT and BAT token in the same manner. Conversely, the new AMM by yEarn boasts of ‘yield awareness’ characteristic that launches a transfer token reflecting the entire liquidity of an asset.
Just a reminder, every component of the design is configurable.
Want to decrease the 1000 BPT voting limit? Proposal
Want to remove the voting requirement? Proposal
Want to swap which balancer pools are used? Proposal
The system is yours, do with it what you will
— yearn.finance (@iearnfinance) July 20, 2020
Every ySwap pool is associated with the transfer token. Therefore, he inherent issues faced by the yield farmers are not present in DeFi pool yEarn resulting in higher interest rates. The whole ecosystem is highly decentralized due to the governance token. The price of YFI shot from $0 to more than $1,700, giving the investors a 1200 percent APY return.