How to Automate DeFi Yield Farming with yVaults

Yearn.Finance is a DeFi protocol famous for its recent launch of the YFI token, which was a limited supply of 30,000 tokens distributed only through a 7-day liquidity mining program in July and has since skyrocketed in price to just over $15,000 per YFI token. Yearn.Finance has one of the most active governance communities and user followings in DeFi because of the unique automation of DeFi and yield farming strategies, which makes DeFi easy for anyone who can manage an Ethereum wallet.

Yearn.Finance has existed since January 2020, when they launched what’s commonly known as a “yield bouncer” to optimize lending interest of assets like DAI and USDC. A yield bouncer is an application that automatically moves lending assets to the highest available rates across different DeFi platforms to maximize interest earned vs lending to a single pool. Yearn.Finance was one of the few DeFi apps to make this yield bouncer concept popular in early 2020.  You can learn more about yield bouncers in this video tutorial I created on my YouTube channel.

Shortly after in February, the beloved and revered Founder of Yearn.Finance, Andre Cronje, unleashed an even bigger innovation by tying the yearn.finance protocol to a Curve Finance stablecoin pool (the Y Pool), where anyone could now earn multiple forms of yield by depositing DAI, USDC, USDT, or TUSD. By becoming a liquidity provider (LP) earning trading fees in the Curve pool, one could also enjoy lending interest returns since unused stablecoins in the Curve Y Pool were being lent to DeFi borrowers, thanks to the yearn.finance yield bouncer mechanism. DeFi users were suddenly earning 2 returns (lending interest + market-making