Yearn.Finance founder Andre Cronje releases new DeFi protocol yCredit

DeFi • December 31, 2020, 6:25AM EST
The Block

Yearn.Finance founder Andre Cronje has released a new decentralized finance (DeFi) protocol called yCredit.

It allows users to deposit ERC-20 tokens and receive 99.5% worth of deposits as a credit line in the form of yCREDIT tokens. For instance, if a user deposits $100 worth of ETH, they will receive $99.5 worth of yCREDIT. If they burn $100 worth of yCREDIT, then they will receive their ETH back.

Cronje said the protocol is still "experimental" and can be "economically exploited," meaning users should use it at their own risk.

With yCredit, users can borrow or purchase any ERC-20 token that is supported as collateral in the system. The currently supported tokens are AAVE, BNB, BUSD, CRV, COMP, DAI, ETH, LINK, MKR, REN, renBTC, SNX, SUSD, TUSD, UNI, USDC, USDT, wNXM, wBTC, and YFI.

yCredit will charge a 0.5% fee for every deposit, trade, swap, borrow, or repay. The collected fees will be distributed to users that stake yCREDIT in the yCredit contract, said Cronje.

yCredit is the latest DeFi project by Cronje. His other projects include Deriswap, Keep3r Network, StableCredit, yInsure.Finance and ySwap.Exchange, among others.

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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