Sorry for my dumb questions, but I need to ask

The gist is that Yearn does not have access to any funds deployed in a vault. They are able to collect yield and re-deposit it, and I think they can pause a vault to protect it, but can’t dissolve it. When you deposit, you get shares of the vault that you can always use to get a proportional amount of it back. Yearn has no ability to mint new shares other than by depositing their own funds. There are of course risks that something isn’t implemented right and there is an exploit. This is true of all DeFi and yearn strives to be as safe as possible with audits and best practices. And because Yearn vaults are just a tool to auto-compound, you also take the risk of the protocol it deposits into (varies by vault). But the way I see it is that these are also risks you would take on if you did the same farming on your own, but now you are relying on the creator of the strategies/vaults to manage that risk and provide that service to you.

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6 дней назад

zzzzz Автор вопроса

Ross
The gist is that Yearn does not have access to any...

Now I got it. Thank you! Another point I have in mind is that USDC vault for example has all the money allocated in Aave USDC Lender What if Aave USDC liquidity drops, will I be able to withdrawal my money? Should I be concerned about Aave’s liquidity or nah?

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6 дней назад

El_Pistolero91 · Accepted Answer

El_Pistolero91

No not at all

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7 дней назад

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Sorry for my dumb questions, but I need to ask

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