Understanding YOP Finance — The Self-Proclaimed DeFi for Parents

What is Yield Farming?

Yield farming refers to the methods used to generate rewards and earn returns on your cryptocurrency assets by depositing them on DeFi platforms such as Aave, Compound, and Curve.
The strategies used to generate yields can involve lending, staking, and providing liquidity using your crypto assets. After the deposit, rewards start to build up passively as time goes by. But what if you could compound (re-invest) your rewards instead of just letting them sit passively inside your wallet?

Is YOP Finance Easy to Use?

The truth is, DeFi must become inclusive to get to its 7 billionth user.

DeFi should be transparent

No matter how good a project may look on the outside, if you cannot find the answers to your questions, it is all for naught. New DeFi projects led by anonymous teams are problematic as the founders could abandon the ship at any given time. Long story, short, there is nobody to take accountability.

So How is YOP Able to Offer 65% APYs on Ethereum, Bitcoin, and USDT Deposits?

YOP, which stands for Yield Optimization Protocol, can perform such a feat using a few ways such as:

  • YOP Finance’s proprietary strategies built using smart contracts may involve simple tasks such as staking on a DeFi protocol named Compound to more complex tasks such as taking a loan on Aave and using the loan to provide liquidity on an Ethereum-USDC pair on SushiSwap. The liquidity provider tokens earned from SushiSwap can then be staked on another DeFi protocol.
  • YOP Finance features a BOOST mechanism wherein users can stake $YOP tokens to further increase their APY. Users can increase their returns thanks to the boost mechanism which involves buying and staking YOP’s utility token ($YOP) for a while. The boost is in the form of a multiplier x1 — x10, which applies to the Reward APY, which is above the base APY of the vault.
  • YOP also has a treasury that continually generates rewards, an important concept that should not be underlooked is risk management. YOP’s yield farming strategies are implemented according to the Trust Score determined by the Risk Engine.
  • By taking into calculation a certain set of inputs, YOP’s Risk Engine can carefully weed out risky protocols that are highly susceptible to losses.

Conclusion: What Lies in the Future For YOP Finance?

Aiming at enhancing accessibility, YOP Finance is looking to move its services across other blockchain networks. YOP will have access to more lucrative yield farming opportunities that will add more depth to the overall strategy set out in YOP’s smart contracts. Currently, YOP’s vaults allow users to deposit Ethereum, Bitcoin, and stablecoins, namely DAI, USDC, and USDT. And the list is sure to increase once YOP diversifies into more blockchain networks.



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