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DeFi Earn: Yearn Earn V2

Yearn Earn V2 is a suite of products providing lending aggregation, yield generation, and insurance on the Ethereum blockchain

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Written by Support Specialist
Updated over a week ago

What is Yearn Earn V2?

Yearn Finance is a suite of products in Decentralized Finance (DeFi) that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain. The protocol is maintained by various independent developers and is governed by YFI token holders.

Yearn Earn is the first product and is a lending aggregator that optimises the interest accrual process across multiple protocols to obtain the highest rates at all times. Deposits are automatically shifted between dYdX, AAVE, and Compound as rates change.

With DeFi Earn integration, we handle the deposit and withdrawal process with Yearn Earn V2 natively on the DeFi Wallet app, hence you don’t have to worry about dealing with smart contract calls and we simplify the concept of yTokens and display the estimated interest you’re earning over time.

When your tokens are deposited to the Yearn Earn V2 protocol via DeFi Earn, you are transferring them to the Yearn smart contract. In exchange, you get the corresponding yTokens which represent the claim to your lent assets.

Interest isn't distributed but by simply holding yTokens, you'll earn interest as yTokens accumulate interest through their exchange rate — over time, each yToken becomes convertible into an increasing amount of its underlying asset, even while the number of yTokens in your wallet stays the same. Hence, we display an extra warning when you’re trying to send your yTokens to ensure you understand the implication of sending away your claim to lent assets + the accrued interest.

When you decide to withdraw, you are essentially sending yTokens to Yearn to redeem your deposited assets along with the accrued interest based on the yToken <> underlying token exchange rate.

Read on to learn about how to deposit, view earnings, withdraw via DeFi Earn.

How do I deposit my crypto assets to DeFi Earn - Yearn Earn V2?

  1. Tap “Earn” at the bottom navigation panel of the DeFi Wallet app

  2. Enter Yearn Earn V2 in the search bar

  3. Select your preferred token and enter the deposit amount to view your estimated earnings based on the latest APY percentages.

  4. Review and confirm your deposit by tapping “Confirm Deposit”

    1. Note: Depositing crypto assets to Yearn Earn V2 involves calling an Ethereum smart contract. This requires ETH as network fees, which causes the estimated network fee to be higher than normal transfers. Please ensure that you have sufficient ETH in your wallet before proceeding.

  5. Authorise the deposit request with your passcode (and 2FA, if enabled)

  6. Wait for the on-chain confirmation of your deposit request

  7. Once the deposit request is confirmed, your DeFi Earn page will display an updated amount regarding your total assets.

In the DeFi Earn page, you will also be able to see the estimated APY at a token level. The tokens you deposit to DeFi Earn will be linked to the protocols you selected. Your assets will start accruing token rewards once the deposit is confirmed on-chain.

How do I view my earnings or deposited assets via DeFi Earn - Yearn Earn V2?

Navigate to the DeFi Earn page. The default view for your total DeFi Earn assets will be displayed in their fiat equivalent amount as “Total Fiat Amount”

  • Tap on “Total Fiat Amount” to switch this to “Total Crypto Amount” and view your DeFi Earn assets in their crypto equivalent amount

  • Tap on “Total Crypto Amount” to switch to “Earnings” and view your estimated earnings for each asset

For a more granular breakdown, tap on a specific token and you will be able to see the latest APY %, total amount deposited, and estimated earnings in crypto.

How do I withdraw my crypto assets from DeFi Earn - Yearn Earn V2?

There is no lockup period for your deposit and you can withdraw your assets from DeFi Earn at any time. Here are the steps to withdraw your crypto assets from DeFi Earn:

  1. Withdrawal via the DeFi Earn tab

    1. Tap “Earn” in the DeFi Wallet’s bottom navigation panel

    2. On the DeFi Earn page, select the token that you would like to withdraw in the “Staked Assets” section

    3. Tap “Withdraw” in the DeFi Earn Details page

    4. Enter the amount you would like to withdraw and tap “Confirm Withdraw” after reviewing the transaction’s details

  2. Withdrawal via wallet balance

    1. In the DeFi Wallet’s homepage, tap “DeFi Earn Assets”

    2. Select the cCOMP token in the following page

    3. Tap “View Earnings” in the “cCOMP BALANCE” page

    4. Enter the amount you would like to withdraw and tap “Confirm Withdraw” after reviewing the transaction’s details

After confirming the withdrawal, a short amount of time is needed for the transaction to be processed.

Does charge a fee to deposit/withdraw to/from Yearn Earn V2? charges a 0.5% service fee on the corresponding earnings for each withdrawal from Yearn Earn V2. The fee is used to supplement the operational costs and risks associated with managing DeFi services, and bringing more DeFi projects to you.

Please note that Yearn Earn V2 is an Ethereum-based protocol and each deposit or withdrawal request incurs network fee in ETH.

Hence, we advise you to only withdraw your underlying assets + interest when you have earned enough to cover the network fee.

Users should be aware of the risks of possible slashing of staked assets or rewards. The specifics of slashing are defined within each protocol, and is a mechanism built into Proof of Stake blockchain protocols. Although it's unlikely, there is a possibility you may lose your staked assets or rewards in case of a network or validator failure. While we've taken measures to reduce these risks, losses incurred as a result of slashing or other on-chain contract security are outside of our control and we shall not have any liability or be responsible for any damages or liabilities suffered from slashing penalties.

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