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Introducing the Programmatic Yield

December 11, 2020

Yield farming seems to be all the craze these days. For some that have been around long enough, it really feels like the 2017 altcoin run, this time with promises of triple digit APYs. Since September, the craze seems to have subsided, but at Ember Fund, we believe the community has stumbled on something transformative. Something that will be here for a long time and perhaps re-define how we think about yield and on a larger scale, how community-run entities govern, share and optimize profits all the while being decentralized, permissionless and transparent.

What we’ve built

Our vision was always to be the gateway to the vast and rich ecosystem of DeFi products as well as provide the content and education around the dizzying amount information around it. Yield farming fits right in line with that vision.

As such, we’ve built a one-tap solution from our mobile app to access yield farming strategies that are constructed by Yearn, the community driven decentralized ecosystem that has “codified” trading intelligence.

In a nutshell Programmatic Yield is:

  • The first mobile app that allows access to Yearn Vaults through BTC
  • Completely non-custodial, you truly own your own assets
  • We’ve simplified everything down to make it a 1-tap solution
  • Smart wallets allow for a seamless bridge from BTC to the DeFi world
  • It’s completely fee free (aside from mining and exchange fees)

How to get started

  1. Download the app here
  2. Sign up
  3. Fund your wallet with BTC
  4. Choose the Programmatic Yield portfolio
  5. Choose your amount and hit invest!

How does it work?

Because the strategies are community driven and can change frequently (in fact, the strategy will be updated in the next few weeks), I will give a high level and simplistic overview of how this vault works. For this particular strategy, your BTC is converted into DAI and then deposited in a Curve liquidity pool. From there, you get trading fees generated by the pool as well as extra CRV tokens (bonus). There are other layers to this including putting the CRV into another pool but that’s probably beyond the scope of this for now. The way I abstract it is thinking about it as if you “own” a piece of a decentralized exchange and are getting your pro-rata share of the profits as well as an extra bonus for “lending” your coins.

What are the fees?

Outside of the on-chain mining fees (that do not go to Ember Fund), we’ve made the product completely fee free. We’re doing this to raise awareness about our platform as well as build goodwill with the Yearn and overall DeFi community. We believe in this and want to support it. Depending on how things go, we might introduce a fee down the line just to keep the lights on. This might look like a small % of APR or another nominal transaction fee.

What’s next?

We fully believe in the future of DeFi as a mechanism for better and more equitable access to financial products. We will continue to build the product out as the technology progresses by: upgrading the product to optimize yield across different vaults, tapping into other protocols, introducing our own mechanisms to maximize yield, etc. Sky’s the limit.

Questions? Email us at support@emberfund.io

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