1/ This is an excellent piece on (Yearn) by @RyanWatkins_ . Anyone who is looking to understand what is going on with YFI and yield farming, should absolutely give it a read.
Source: @MessariCrypto
Thread below 👇
2/ There are multiple protocols providing yield (returns) on the capital that you lend. These yields are varying from one protocol to the next. automates & optimizes lending such that you can earn maximum value on your capital without researching each protocol. #roboadvisor
3/ With the launch of the governance token, assets under management skyrocketed from ~$10mm in mid-July to ~$830mm today.
Source: defipulse.com/yearn.finance
4/ market cap in the meantime went from $0 to $400mm+
coingecko.com/en/coins/yearn…
5/ There are 2 main products that Yearn offers:
1) Earn: Lend your digital assets. Earn maximum interest among a pool of lending protocols such as Compound, Aave, et. al.
See how 0.5% withdrawal fee goes to governance token .
6/
2) Vaults: Lend your digital assets to yield farming strategists (think hedge fund managers) who deploy advanced strategies leveraging liquidity mining tokens to maximize returns.
More risky. Expect higher returns than Earn.
5% in performance fee trickles down to .
7/ As of Aug 21st, was raking in money at an annualized rate of $21mm with ~$400mm in market cap. It would imply a P/E (assuming negligible costs as of today) of ~20. Among the lowest in the cohort of DeFi protocols.
8/ Are cashflows sustainable & competitor's arrive (e.g. APY.Finance & Set V2)
Time will tell but Yearn's:
a. Execution is terribly fast
b. Insurance, exchange, etc. products in pipeline
c. A fair launch project with a strong community!
@learn2yearn
@safetyth1rd
Link to article:
messari.io/article/yfi-an…
Source: @MessariCrypto @RyanWatkins_
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