Deployment of Yearn Finance on Ethereum’s L2 Arbitrum
Yearn Finance, a decentralised financial infrastructure protocol that enables yield farming, lending aggregation, and other services, has launched on another blockchain network – Arbitrium.
Arbitrium is Ethereum’s largest layer 2 blockchain, with a total value of approximately $3 billion. Additionally, the company noted that its fees are significantly lower, up to tenfold those of Ethereum.
Additionally, Binance and FTX, two popular cryptocurrency exchanges, support Arbitrium deposits and withdrawals in ETH.
Initially available on Ethereum, the protocol was later expanded to include Fantom, a scalable Ethereum alternative for DeFi and decentralised applications. Arbitrium was added to the company’s support portfolio four months later.
Yearn will begin operations on Arbitrium with a single vault, Curve’s triCrypto, which will store wrapped Bitcoin, Ethereum, and Tether.
Arbitrium’s Yield Farming
Users can participate in yield farming by providing much-needed liquidity in exchange for a percentage return on their investment. The process provides farmers with a relatively secure source of income. Yield farming enables traders to execute trades by providing the liquidity they require.
Users must first add Arbitrium to their wallets before they can access the service. Second, they must establish a connection between Ethereum and Arbitrium. Alternatively, they can use Binance to transfer Arbitrium ETH to FTX. They must then exchange cryptocurrency for one of three wrapped tokens.
Finally, they must make a deposit to Arbitrium of the wrapped tokens. This will enable them to earn yield, as the protocol will stake the tokens on Curve Fi.
Wrapped tokens like wBTC are the equivalents of native cryptos on other blockchains, such as wBTC on the Ethereum blockchain or wETH on Arbitrium.
Unfortunately, wrapped tokens introduce new security risks, which may result in users losing all their assets.
Yearn Finance anticipates future growth in Arbitrium and other blockchains. They also promised additional Arbitrium vaults, layer 2 roll-ups, and side-chain vaults.
Yearn is described by its developers as a “radical experiment in decentralisation.” Yearn lacks incorporation papers, a physical location, and even a list of contributors’ names and locations.
Yearn Finance’s team made an appearance on ETHDenver earlier this month. It included a dakimakura, an anime body pillow, in the stunt.