The beginning of September brought with it an exciting development. Yearn Finance, a hub of decentralized protocol that enables earning passive income through yield farming, has decided to slash management fees on vaults like ETH, DAI, USDC, and some other notable ones.
This decision resulted from integrating smart contract functionalities into their network and using it to replace the individuals that managed the vault pools.
Through this singular action, the platform can cut down on fees since smart contracts operate autonomously. This would save the protocol extra costs that would have been spent on salary increments and bonuses.
The vault is one out of the three services on this platform and functions more like saving accounts in a bank, only this time with digital assets.
In addition, there are strategies to manage the assets in the vaults, and each user is responsible for managing their assets and choosing the strategies that suit them best.
Currently, the platform offers 10 different strategies to various users. Yield Finance also assists its customers with auto compounding, rebalancing, and capital shifting.
The platform also offers a lending service called Iron Bank. It is a feature that allows both protocols and users to borrow against their cryptocurrencies for a specific period.
Additionally, Yearn Finance offers zero-collateral loans, but the service is only available to some specific whitelisted protocols.
Finally, they offer the Earn service. A lending aggregator that can move funds between several platforms.
All users who deposit funds into these aggregators earn interest, and its smart contract functionalities ensure they get the highest rate available.
The Yearn Finance platform was built on the Ethereum network as a DeFi tool that intends to break down the complexities of yield farming.
They make it easy for users to interact with DeFi and simultaneously offer a 2-in-1 service of swapping and farming.