Yearn Vault Tokens as collateral
Using tokens as collateral is a primitive building block in DeFi: “collateral” means that the tokens are locked, and only to be unlocked once agreed-upon conditions are met (such as the repayment of a loan). An everyday use case is seen in lending platforms, which allow users to lock tokens to borrow other ones. yvTokens can represent any yearn vault, which has many valuable properties when used as collateral:
They are yield generating
Any yvToken is the yield-bearing version of a token deposited in it, so when locked up as collateral it will still keep generating yield. A single vault token can run up to 20 yield-generating strategies. All Vaults at yearn.finance run “up-only” strategies.
The safest yields in DeFi
Vaults strategies are constantly audited to practice the highest security standards of DeFi. Grow with us one day at a time.
- Vaults & Strategies Deployment Security Guidelines
- Yearning for Yearn: Messari Report
- Yearn Security Processes
They’re ERC20 compatible
Yearn Vaults are ERC-20 compatible like any other commonly expected token. There is no code security overhead for developers to implement any yvToken as a new option for collateral.
They’re almost 100% liquid
Strategies that lock tokens are kept to an absolute minimum amount of time. To learn more about strategies and funds allocation visit yearn.watch for a look into what’s going on.
Split fees with Yearn
Yearn’s fee-sharing partner program allows you to earn up to 50% of the fees generated on your users’ TVL every month. We are in this together!
They’re transparent
What you see on-chain is what you get. For real-time protocol data, see:
- yearn vaults descriptions
- yearn.watch
- yearn.vision
- yearn at dune analytics
- yearn at defillama
- diving into yearn metrics (article)
Projects using yvTokens as collateral:
Here is a list of all current partners that build on yearn:
- Alchemix: https://alchemix.fi/
- Abracadabra: https://abracadabra.money/
- Inverse Finance: https://www.inverse.finance/
- Element: https://www.element.fi/
- Gearbox: https://gearbox.fi/
- QiDao: https://app.mai.finance/
- Ribbon: https://www.ribbon.finance/
- Sturdy: https://sturdy.finance/
- Tempus: https://tempus.finance/
This text was first made for Yearn Partner Docs. If you are a partner building with Yearn we’d like to hear about what you are doing! Contact us through our partners form or reach out to us in our discord at #vaults!
