Yearn Finance Founder Andre Cronje Launches yCredit
DeFi’s star of the year has shared details of a new protocol called yCredit. It’s been built to give users what Cronje calls “tokenized yield credit”.
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Andre Cronje has been building more decentralized finance infrastructure. This time, he’s created a protocol called yCredit.
It builds on the StableCredit protocol he announced in September and works by giving users credit in a token. Whenever a user makes a deposit, they’ll be paid 99.5% of its worth as a credit line.
Andre Cronje Launches Yield Credit
When a user deposits $100 worth of SNX, for example, they’ll receive 99.5 yCREDIT. They can later redeem their SNX by burning 100 yCREDIT.
A 0.5% fee will be charged for every deposit, trade, swap, borrow, and repayment. Those fees will then get distributed to users who stake yCREDIT.
yCREDIT holders will also be able to use arbitrage to profit if the token moves from its peg. When it exceeds the peg, they can mint tokens to cash them in for the relevant ERC20, and vice versa when it falls below the peg.
Users of the protocol will be able to borrow or purchase any ERC-20 token used as collateral in the system. As ever, it supports many of DeFi’s so-called “blue chips”: AAVE, BNB, BUSD, CRV, COMP, DAI, ETH, LINK, MKR, REN, renBTC, SNX, SUSD, TUSD, UNI, USDC, USDT, wNXM, wBTC and—of course—YFI.
It’s another addition to Cronje’s list of DeFi projects, including Keep3r, Hegic, StableCredit, and ySwap.Exchange, Deriswap, yEarn.Finance, and more.
Cronje prefaced and concluded his note with a familiar disclaimer: “yCredit is experimental. yCredit is not a speculative token. yCredit can be economically exploited.”
Disclosure: At the time of writing, the author of this feature owned ETH, UNI, and wNXM, among other cryptocurrencies. Disclosure: One or more members of Crypto Briefing’s management team owns HEGIC. The company (Decentral Media Inc.) owns HEGIC. Andre Cronje is an equity-holder in Crypto Briefing.
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