Yield Protocol V2 is Live in Beta!
Yield Protocol’s mission is to make fixed-rate borrowing and lending a fundamental part of decentralized finance. We think that fixed-rate borrowing and lending will be essential to onboarding DeFi’s first billion users.
To further that mission, today we’re excited to launch Yield Protocol Version 2 on Ethereum Mainnet in Beta.
Quick Overview of New Features
- multiple new collateral types (ETH, WBTC, DAI, USDC, with the possibility to add more)
- multiple stablecoins to borrow (USDC, DAI, with the possibility to add more assets)
- improved use of gas and transactions
- improved liquidity provider experience with automatic rollovers
- streamlined interface for borrowing, lending, and pooling
To get started borrowing / lending today, visit the app
For more in-depth explanation of Version 2’s new features, visit blog link here
Adding Liquidity
Yield Protocol v2 has improved the experience for providing liquidity. Users now contribute liquidity to strategies that manage the provisioning of liquidity into pools. Pooling your liquidity earns you fees from borrowers and lenders. When a liquidity pool’s maturity date is reached, strategies automatically rollover liquidity from one pool to a later pool and require no user intervention. Please note that providing liquidity has certain risks, so please review the note below.
Here’s how to provide liquidity:
From the app screen, select the “Pool” option.
Next, select the asset you would like to provide as liquidity. During the beta, you can provide liquidity to earn fees in USDC and Dai.
Then, input an amount of liquidity to provide. Please note that during the beta, debt limits may limit the amount of liquidity you may provide. The protocol will use up to the amount indicated, but may take less, depending on protocol conditions.
After that, select a strategy to provide liquidity in. Click “Next step” to bring up the confirmation screen.
On the next screen, choose a pooling method and review the transaction. More information on the pooling methods can be found in the Quickstart Guide. In certain cases, only one method may be available when pooling in certain strategies.
Finally, review the transaction, and if correct, click the “Pool” button. You will then be prompted by your wallet to sign necessary approvals and transactions. For users who are interested in sending transactions with lower gas fees, please be aware that preset slippage limits may cause the transaction to fail.. Once the transaction is confirmed, you will start earning fees from borrowers and lenders!
An important note about providing liquidity in Yield Protocol: Yield Protocol v2 strategies pool all funds in Yield Protocol liquidity pools to earn variable fees. These liquidity pools are automated market makers like Uniswap or Curve. Accordingly, by pooling liquidity in Yield, you may experience impermanent or actual losses in times of significant interest rate moves. Earning a return on the pool is not guaranteed. Additionally, pooling requires buying or borrowing fyTokens, so your position may be impacted by trading fees and/or interest. While we have worked hard to create sensible defaults, you should take the time to understand the tradeoffs associated with various ways to provide liquidity and how market conditions can affect your position. If you have any questions about how liquidity providing works in Yield, please ask us questions in our Discord.
For a Quickstart Guide on lending and borrowing, click here
Beta Information
Yield Protocol will start out in Beta, which we expect to run for a few weeks.
To ensure a safe and smooth launch experience, we’ve placed a debt limit at the protocol level of 100K per asset type. In addition to limiting debt, the debt limit will limit the total liquidity that can be added to the liquidity pools.
We’ll be monitoring the contracts closely for any issues and will raise the limits once the beta period is over.
Governance & Timelock
During the beta, the development team will manage the protocol: fixing issues, ensuring proper operation, and educating the community on the protocol. Long term, we expect Yield Protocol to be a community-led and community-owned protocol. We encourage everyone interested to get involved in the Yield community via our Discord.
All changes made by the Yield development team during the beta will be subject to a timelock contract that prevents immediate execution of any changes. The timelock will be set at 48 hours to start. Additionally, any changes made to Yield Protocol must be approved by a Governance multi-signature wallet. During the Beta, the multi-signature wallet will consist of members of the Yield development team. Over time, we plan to substitute development team members for prominent community members to decentralize control of the protocol. Long term, we expect governance to be controlled exclusively by the community.
Audit Information
How to Get Involved
We’ll be hosting a Twitter Spaces event on Thursday 10/28 at 3PM Eastern Standard Time (GMT-4)
Join us and be a part of the community!
More Information
