1/3 BTC interest-bearing asset evolution path

by Solv Protoco

1. DeFi Summer: Pure algorithm-controlled assets

The DeFi Summer of 2020 is like a myth of Crypto. Uniswap, Bancor, Aave, Compound, and MakeDAO have laid the foundation for the development of DeFi. AMM and "liquidity mining" have allowed traditional finance to see the revolutionary and rationality of Crypto. From the perspective of user income and asset management, AMM and liquidity mining are based on a single liquidity pool. Users must manually interact with each pool and make deposits and withdrawals on multiple platforms. In this case, since each pool is independent, it is difficult for users to quickly allocate funds to the place with the highest yield. The isolation of the pool also makes user operations more complicated and potential benefits are limited.

In the face of these problems, Yearn brought the industry a yield aggregator (commonly known as the "machine gun pool"), through which users can automatically allocate assets to multiple liquidity pools to optimize returns. Yield aggregators are, after all, a passive asset management model. During this period, whether it is Swap, lending or machine gun pools, fund security and yields are still limited by the limitations of the underlying pool. In other words, yield aggregation simplifies users' asset management, but the logic of the underlying mining pool has not been iterated.