Yearn.finance (YFI) launches permissionless vault deployment

The decentralized yield protocol's factory-deployed vaults have no management fees and a flat 10% performance fee.

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Yearn Finance

On January 9th, decentralized yield aggregator Yearn.finance (YFI) announced in a tweet that it has enabled all users to create advanced Permissionless Vault Factories on its platform.

The new version of Vault Factory supports decentralized exchange Curve Finance and its liquidity provider (LP) tokens and includes three pre-configured yield strategies.

https://twitter.com/iearnfinance/status/1612484328616755200

According to Yearn.finance, there are three different factories available: “Boosted Factory”, “Convex Factory”, and “Convex Frax Factory”.

The Boosted Factory utilizes Yearn’s vote-escrowed CRV balance of 45.1 million to provide users with a 2.5x boost on CRV rewards. The Convex Factory distributes additional CRV LP tokens to the decentralized platform Convex Finance, allowing users to earn both CRV and CVX rewards. The Convex Frax Factory allows users to access rewards on the Frax Finance platform.

Yearn.finance has made a major leap forward in automation with the introduction of the Vault Factory. This new development allows the company to greatly reduce its operational expenses.

One of the key benefits of this new method is that all vaults deployed using the Vault Factory will have a management fee of 0%, as well as a performance fee of 10%.

This represents a significant change from the previous fees of 2% for management and 20% for performance. The performance fee will be directed towards Yearn’s treasury and will be calculated on the basis of profits generated.

Furthermore, the deposit and withdrawal fees for these self-created vaults will also be set at 0%, although users will still be responsible for gas fees when interacting with them.