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After announcing its integration with Fantom Network, Yearn Finance is taking its first steps into the multiverse.
Yearn, a pillar of the decentralised finance (DeFi) sector, began as an automated yield aggregator, providing users with the highest yields for their Ethereum assets.
Instead of manually moving cryptocurrencies from protocol to protocol in search of the best rate, Yearn automates this process with its Earn product. Yearn’s Vaults product is a step up, allowing users to deposit funds into pools that execute more exotic yield-generating strategies than simple, one-time deposits.
Before today’s announcement, these services were exclusive to Ethereum. Now they’re rolling out on Fantom Network. “The realm of multichain beckons. And Yearn has heeded the call,” Yearn Finance tweeted.
Only after users have switched their network from Ethereum to Fantom on the Web 3 wallet can they interact with the first four Fantom-based Vaults on Yearn: USD Coin, Fantom, DAI, and the stablecoin Magic Internet Money (MIM).
The yield at press time is unknown, but users have already begun piling into the Vaults, with the Fantom Vault currently managing more than $51 million.
Alongside Yearn Vaults, the joint Iron Bank venture between Yearn and lending and borrowing platform C.R.E.A.M Finance is also launching on Fantom. Iron Bank whitelists protocols, letting them borrow from CREAM v2 using zero collateral.
What is Fantom Network?
Fantom, like Ethereum and other smart contract-enabled Layer 1s, allows developers to create decentralised applications and protocols.
Fantom, unlike Ethereum, uses a Proof of Stake (PoS) consensus algorithm to verify transactions. Fantom’s PoS iteration is also quite unique, relying on a mechanism known as an Asynchronous Byzantine Fault Tolerant (aBFT).
Because of these differences, Fantom consumes less energy and has a higher throughput than many of its competitors.
The network’s native token FTM has also enjoyed a heady week, rising 86% over the past seven days, according to CoinGecko. Like Ethereum’s ETH, FTM is used to pay transaction fees on the network.
Beyond just price speculators, the network has experienced genuine growth.
According to FTM Scan, a data platform for all things Fantom, the number of unique addresses has risen from just over 1,500 in April to 854,284 addresses at press time, with popular DeFi applications like Yearn Finance, Curve Finance, SushiSwap, and Ren all joining Fantom.