More advantages over traditional asset management

Compared to conventional asset management, decentralized asset management is relatively new, with more revenue models and a more complex revenue type, so there is a lot of space for it to grow, just like YEARN, which is cut out for this market.

Initially, Yearn applied a strategy of comparing yields, such as users depositing Dai would seek the highest Dai yield between pools such as AAVE or Compound. Later, as the volume of funds grew and as liquidity mining emerged, Yearn entered the machine-gun pool stage, which helps users allocate different Defi mining pool returns. Yearn automates the whole process, (such as participation in mining, selling, and conversion of passes), and reduces user costs.

The essential part of the source of liquidity mining revenue is token rewards rather than fee income; thus, processing token rewards becomes critical. The machine gun pool automates this part, so customers do not have to think about the middle process.

And thanks to the addition of YFI's community pass, the initial pledge of yCRV can also earn YFI rewards. Machine gun pools like Yearn emerged to solve the problem of matching multiple protocols. Its token distribution allows a machine gun pool to present a dynamic revenue distribution. There are high fees for moving passes between protocols, which is why machine-gun pools with a one-click operation are highly accepted by the market.