Yearn implements a liquid wrapper for Balancer’s voting tokens (veBAL) and an ecosystem allowing users to invest the funds to earn a yield on their deposits. A Zapper contract allows a convenient entry point for users to invest their funds. The new liquid wrapper token yBAL can be always minted by providing BAL or WETH tokens. Having yBAL the users can decide between the associated investment strategies and earn from LP rewards or staking rewards.
Yearn Finance is “a suite of DeFi tools and products in an interconnected financial ecosystem running on various smart contracts. The yEarn Finance ecosystem is community-controlled and governed via a governance token called YFI.”