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Yearn Finance, a DeFi protocol providing yield farming, lending aggregation, and other services, launched on another blockchain network – Arbitrium.
Arbitrium is the largest Ethereum layer 2 blockchain, with about $3 billion in total value locked. It also has much lower fees, up to 10 times lower than Ethereum’s, the company pointed out.
Moreover, popular crypto exchanges Binance and FTX support ETH deposits and withdrawals for Arbitrium.
Initially available on Ethereum, the protocol first expanded to Fantom, a scalable ETH alternative for DeFi and dApps. Four months later, Arbitrium became the third blockchain network the company supports.
Yearn will launch on Arbitrium with a single vault, Curve’s triCrypto, which will hold wrapped Bitcoin, Ethereum, and Tether.
Yield Farming on Arbitrium
Yield farming allows users to provide the much-needed liquidity for a percentage return on their money. To farmers, the process gives them access to a relatively safe income stream. To traders, yield farming provides the liquidity they need to make the trades.
In order to access the service, users first have to add Arbitrium to their wallets. Secondly, they have to bridge Ethereum to Arbitrium. Alternatively, they can withdraw Arbitrium ETH from Binance to FTX. Then, they have to swap crypto for one of the three wrapped tokens.
Finally, they need to deposit their wrapped tokens to Arbitrium. This will allow them to collect yield, as the protocol stakes the tokens at Curve Fi.
Wrapped tokens such as wBTC are the equivalents of native cryptos on other blockchains – for example, wBTC on the Ethereum blockchain or wETH on Arbitrium.
Unfortunately, wrapped tokens come with their own set of security issues, which could result in users losing all their assets.
Yearn Finance promises more expansion in the Arbitrium and other blockchains down the line. They promised more Arbitrium vaults, more layer 2 roll-ups, and side-chain vaults, among others.
The team behind Yearn calls the proj”ct “a radical experiment in decentralizat”on.”
Yearn has no papers of incorporation, no headquarters, nor even a list of names and locations for its contributors.
Recently, the team behind Yearn Finance made an appearance on ETHDenver. It featured a stunt that included a dakimakura, an anime body pillow.
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