yearn.finance In June, Yearn swiftly elevated the decentralized finance world's interest in yield farming by launching automated strategies for gaining yields on governance tokens such as COMP, CRV, and BAL.
To put it lightly, these strategies captured the interest of many users, leading to a rapid expansion in Yearn's user base and its popularity. Ethereum One significant leap forward for Yearn was the introduction of YFI, its very own governance token, signifying progress in a short span of time.
The introduction of YFI empowered Yearn's budding community to join efforts with its innovative developer, Andre Cronje, in driving the platform's optimization and growth.
The Yearn community successfully passed its inaugural YFI governance proposal at the end of last month. Fast forward two weeks and 32 more proposals, and stakeholders just ratified a key decision. YIP-33: Add LINK to yVaults This strategic partnership forms a synergy between two standout DeFi projects, Yearn and Chainlink, creating a reciprocal relationship. This interplay is thrilling for a number of reasons. Chainlink Leveraging LINK within this system reveals a compelling process: providing LINK liquidity, utilizing it as collateral on Aave, and ultimately depositing generated USDC into yVaults to realize returns—all automated by Yearn.
Yearn LINKS Us Up
Yearn just introduced a new “ delegated vault Simply deposit your LINK to provide liquidity.
- Deploy the LINK liquidity as collateral using the Aave protocol by depositing.
- Channel the USDC (or other assets) back into yVaults to garner annual percentage yield returns.
- Borrow stablecoins, e.g. USDC
- Transform the profits back into LINK, increasing the vault's capacity.
- The real advantage? Yearn automates all these steps, streamlining the entire process and significantly speeding it up compared to manual execution. This showcases Ethereum’s dApps potential.
The new LINK yVault model stands out as it demonstrates Yearn's immediate capabilities and offers a glimpse of its promising future solutions. It feels like an optimal time to be exploring yield farming. composability The decision to prioritize LINK yVault validates its appeal as YFI voters opted for it amidst other contenders. Currently, LINK is one of the most sought-after, liquid ERC20 tokens, and Yearn enhances its utility through innovative yield farming.
On the flip side, LINK's engagement could usher in new liquidity to Yearn. It's a mutually profitable situation in the cryptoeconomy.
Additionally, for Chainlink With assets worth over $1.3 billion, the MakerDAO lending and stablecoin protocol leads the DeFi applications, while Yearn positions itself as the 9th largest with $165 million secured.
Though Yearn is relatively nascent, it evolves rapidly and supported LINK early. Meanwhile, MakerDAO, though more established and stable, hasn't yet integrated LINK as Maker collateral.
When LINK in MakerDAO?
The proposal suggests that adding LINK as Maker collateral would amplify Dai issuance and redirect sell pressure to stabilize the dollar peg, driven by increasing trade above it. DeFi Pulse No steps have been undertaken so far, keeping LINK outside MakerDAO’s current collateral roster. But this doesn’t rule out future adoption.
Advocates like ChainLinkGod.eth have highlighted LINK as a logical addition to Maker collateral, accessing its high liquidity and appeal, especially among enthusiasts keen on leveraging LINK via DeFi.
Of course, there were discussions back in the spring William M. Peaster, a seasoned writer covering Ethereum, Dai, and Bitcoin in the cryptosphere, has contributed to platforms like Blockonomi and Binance Academy. He's keen on evolving technologies like smart contracts, DAOs, dApps, and the Lightning Network while also learning Solidity. Reach him on Telegram @wmpeaster.
Ethereum (ETH) Prices have tumbled 45% in Q1 2025 despite dominating in terms of DEX trading volumes. forum discussion about onboarding LINK:
The crypto landscape experienced liquidations amounting to $450M after the US announced new tariffs.
