News

Yearn Finance V3 to Make DeFi Tools More Accessible

Published

9 months ago

August 16, 2023

Yearn Finance has come forward with a groundbreaking proposal that has the potential to transform the landscape of yield generation.

According to the proposal, its primary objective is to give users more agency by enabling them to seamlessly deploy the latest generation of yield-generating vaults and strategies without requiring permission.

This move will make access to sophisticated DeFi tools and strategies more widely available, paving the way for a new era of increased financial inclusion.

The funtionality of Yearn Vaults V2 is being attempted to be commoditized through the use of the V3 protocol. Managing and strategising are now simple task that anyone can complete.

Creating in effect a public marketplace for V3 Vaults and strategies that can be run by any third party, individual, or entity independent of any participation from Yearn contributors. Our mission is to build the foundational infrastructure that all on-chain capital allocators can utilize to achieve their goals.

Source: Yearn.Finance

Both Vaults and Strategies in V3 are to be completely self-sufficient vaults that comply with ERC-4626 (A standard for a yield-bearing vault). The connection between a V3 Vault and its strategies has been completely overhauled, and they are now operating entirely on their own.

This means that a vault can deploy capital to a variety of different strategies. However, at the moment, a strategy has the ability to accept capital from a variety of vaults (in addition to sources other than vaults, such as direct deposits from users).