yearn.finance is a DeFi yield aggregator, governed by YFI token holders. The market cap is $117,494,589 and the 24h volume is $9,283,821.
yearn.finance blockchain consensus is achieved via the Ethereum Blockchain. Investors can leverage their crypto via staking. Currently there are 2 options to earn passive income and staking rewards with your yearn.finance investment as outlined below.
- How to stake YFI?
Holding YFI gives the right to claim your shares in the yearn.finance rewards contract.
To stake your YFI tokens, simply visit https://ygov.finance/ and initiate the staking transaction to the governance smart contract.
- How much can i earn staking YFI?
The yearn.finance ecosystem earns rewards. These include, but are not limited to;
- yearn.finance interest
- COMP from compound
- CRV from curve.fi
- curve.fi/y trading fees
- ytrade.finance leverage fees and liquidation bonuses
- yswap.exchange underlying system fees
- yliquidate.finance liquidation bonuses
- system dust (unassigned interest or fees)
These fees will be collected on a daily/weekly basis and can be requested by the governance contract. Once claimed they are distributed to the vault contract. The vault contract normalizes the rewards to aDAI (Aave’s wrapped interest-bearing DAI) via 1split.eth (1inch.exchange’s on-chain dex) and sends the funds to the rewards contract.
The rewards contract can be found at;
At any given point in time, YFI holders can claim their share of rewards by burning their YFI tokens. The amount redeemed is equivalent to the share being burned / total supply of the token. So if there is 1 aDAI in the contract, and 1 token, burning the 1 token will reward 1 aDAI.
It is the choice of the YFI holder when they wish to redeem. As the system AUM and usage grows, so does the fees, and respectively the rewards pool.