Yearn.Finance, a key player in the realm of decentralized finance (DeFi), has launched a new feature that allows users to supercharge their crypto trading experience. The new offering, called Yield+, enables users to simultaneously earn yield and leverage trade with a single asset. This dual capability was previously unattainable within the DeFi sector.
What is Yield+?
Yield+ is an innovative feature that allows traders to efficiently leverage their assets in two ways: they can earn yield on an asset while using the same asset as a margin to trade perpetual futures. This increased versatility, paired with Perp’s multi-collateral feature, offers unprecedented flexibility to traders and yield seekers.
Built on top of Yearn’s managed vaults on Optimism, Yield+ takes full advantage of the composability of DeFi, allowing traders to earn interest on their USDC, USDT, or ETH. Additionally, they can use their farming positions as a margin to trade various cryptocurrencies with leverage.
Upon depositing to Yield+, users receive yield-bearing tokens that can be used as a margin to open positions in any of the 18 crypto markets available on Perp. Even when the collateral is idle, users continue to earn a return from Yearn’s vault strategy, eliminating the need to move tokens around when there are no open positions or trading ideas.
Benefits of Yield+ include:
- Earning interest while trading
- Sustainable APR with no fees
- Continuous increase in share price
- Instant withdrawal with no lock-in time
Overview of Yearn.Finance
Yearn.finance is a suite of protocols on the Ethereum blockchain that allows users to optimize their earnings on crypto assets through lending and trading services. As part of the rapidly evolving DeFi landscape, Yearn.finance operates solely through code, negating the need for a financial intermediary such as a bank or custodian.
The platform comprises several independent products, including APY (a data table displaying interest rates across various lending protocols), Earn (identifying the highest interest rates users can attain by lending an asset), Vaults (a set of investment strategies to maximize returns from other DeFi projects), and Zap (a feature that allows multiple trades in one click, saving on cost and effort).
Users can earn YFI tokens by locking cryptocurrencies in Yearn.finance contracts operating on the Balancer and Curve DeFi trading platforms. This practice, commonly known as "yield farming," allows users to earn more cryptocurrency by locking up crypto assets in a DeFi protocol.
Yearn.finance's various services, such as Earn, Zap, and APY, enable users to lend or trade their cryptocurrency optimally. For example, Earn works by searching across different lending protocols, like Aave or Compound, to find the best rates. Zap, on the other hand, lets users execute several trades with a single click, saving time and transaction fees.
Perhaps the most complex service offered by Yearn.finance is Vaults, which allows users to follow active investment strategies using the platform's self-executing code. Comparable to actively managed mutual funds, Vaults remain in an experimental stage as of now. Investing in a Vault is relatively straightforward through Yearn.