Enzyme Finance announced last Monday, July 5, through its Twitter account, that Yearn Vaults is available on the platform, giving portfolio managers within the Enzyme application new opportunities to open specifically designed yield cultivation strategies for your needs.
“We are pleased to announce that, starting today, Yearn Vaults is available on Enzyme Finance. This provides portfolio managers within the Enzyme application with new opportunities to open up yield cultivation strategies designed specifically for their needs”, he said through an article posted on the Medium platform.
What are Yearn Vaults?
According to the company, Yearn Vaults pools funds with predetermined strategies to maximize the return on the underlying assets consolidated in the vault.
How do Yearn Vault strategies generate profitability?
In their view, Yearn Vault strategies allow users to provide liquidity through their range of Vaults in exchange for the returns obtained from agricultural strategies. “These strategies, in turn, generate added liquidity provider (LP) rewards, interest returns, as well as trading fees and / or any other gains. Vault strategies are specifically designed to minimize ETH gas costs through batch processing transactions”, he added.
The return to the user in this process is the amount of return that was earned, minus the fees.
Why access Yearn Vaults through Enzyme?
The company said that with Enzyme now hosting Yearn vaults, users can access a wide range of Yearn strategies and manage them in a single vault.
While mimicking some Yearn-like strategies is natively possible in Enzyme today, the company noted that there are some compelling reasons the user might want to leverage Yearn vaults from an Enzyme vault:
• Do you find yourself actively allocating capital from one Yearn vault to another (or from anything else in DeFi to Yearn for that matter!)? If so, it will be much easier for you to keep track of everything in one place. By conducting all your DeFi activities from within an Enzyme vault, you can track current and historical performance metrics in real time from the comfort of a simple, easy-to-use interface.
• If you are managing a relatively small portfolio and want to grow a portion of it, it might make financial sense for you to use Yearn due to the potential gas cost saving benefits. If you think the gas costs of running a similar strategy natively at Enzyme exceed the management / performance fees you would pay to Yearn, Yearn offers you a brilliant solution.
• Yearn allows you to navigate on “autopilot” mode, saving you the time it takes to research and stay on top of the most attractive farming strategies available. If you are a busy person and don’t have the time to actively manage among top performers, it makes sense to explore what Yearn Vaults can do for you.
How to access Yearn Vaults through Enzyme Finance?
The company explained that once they are in the Vault Manager tab, the user must go to Performance and order by the asset they are interested in generating their performance on. Once you have done this, you will be able to see all the vaults in which this asset is stored and the associated options for lending these assets by vault.