Early August a project came in the Ethereum ecosystem which bring the storm not only in DeFi world. Everyone is talking about YAM! YAM!! and YAM!!!
Let’s break the whole YAM and yield farming concept in a step by step way. If you have ever sent any transaction then you already know more then 80% of the whole concept.
What is YAM?
It’s an experimental defi protocol developed by Andre. He mashed up some of the exciting features of programmable money and governance.
You must have heard about popular defi platforms like Compound finance, Aave, and Synthetix platform. To get the best out of all popular DeFi projects it’s very difficult to know where to put what token to get the best return!. And apart from all that you have to pay multiple times transaction fees. So, in order to avoid all these complex situations, YFI & Yearn Finance is introduced.
Yearn Finance is a protocol that simply finds the best yield for whatever token you have, automatically.
- The only thing you have to do is to deposit your coin in their system.
- When you are depositing USDT/DAI stable coin, it will give you “y” tokens in return, ie yUSDT. Hence the name Yearn Finance, “yEarn” Finance. But this is only the start… Hold on!!
- Andre is the genius guy. He created this system along with the YFI governance token in very unique way. He took no tokens for himself. Supply started at 0 and total 30,000 coins will be “farmed” as rewards…
