Yfv Finance revealed its roadmap for Value Liquid, an innovative automated market maker (AMM) designed to facilitate yield farming for its liquidity providers. Yfv finance combines many popular DeFi products such as automated asset management. Along with liquidity mining into one product, Value Liquid, incentivizing users with rewards in VALUE tokens. Interestingly, the platform will enable liquidity providers to move assets to another protocol while continuously earning rewards from the platform.
What is Value Liquid’s flexible farming?
It is team Yfv’s answer to the competitive nature of yield farming for staking LP tokens. Currently, we find a landscape where DeFi platforms keep offering new incentives to attract liquidity providers. In most cases, the yield farmers are not interested in the project itself and rather the best possible returns. As a result, you find a scenario where participants continuously move their assets around. This clogs up the network and raises gas fees for everyone.
A disadvantage for small portfolios… If you can’t afford the high transaction costs of moving assets around. Then, you are stuck and will not earn the best yields. Value Liquid’s innovation is that it will minimize all costs associated with moving your assets to a new farming opportunity.
- For example, if Balancer, Uniswap, or SushiSwap is offering a higher APY. You can convert your funds to farm on those protocols, but Value Liquid manages it for you. It resembles the double farming features we find in SashimiSwap.
Flexible farming avoids inefficiencies… Instead of losing liquidity providers, Value Liquid provides a one-click solution for rotating staked LP tokens into a different protocol. This way the protocol still manages the liquidity, meaning there is no negative impact on slippage rates.
If you’re feeling confused, check out the following graphic for Value Liquid which breaks down the roadmap plans.