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Vesper Finance, a platform for DeFi products, has announced its entry in beta, where users can deposit ETH to earn yield in DAI. It might open up many new opportunities for the users.
Note that Vesper Earn is a product of Vesper Finance that is developed to allow the users to deposit an asset and earn a yield on it. What makes it unique is that the users can acquire a different asset upon depositing one asset. The team called it a programmable yield.
Vesper Earn is the first such protocol to offer the users to experience programmable yield. Recently, it has started with ETH/ DAI pair, where users can deposit ETH and earn DAI.
The beta leading up will last till the end of the year, and more pools will be added where users can earn DAI by depositing WBTC, ETH by depositing USDC and WBTC by depositing USDC.
There is great flexibility with what has to be done with the earnings on Vesper Earn. The Earn pools can also be leveraged to direct yield beyond buying other tokens. For instance, Vesper Earn can help coordinate charitable giving, where the earned assets can directly be directed for charities and non-profit grants.
Not only this, the users can generate yield for a project and earn the tokens of that project with Vesper Earn’s programmable yield.
So far, what we know is that Vesper Earn pools enable the users' assets to generate yield on the deposited assets. But, this yield is not simply accumulating; instead, it is being used for a different purpose. In simple terms, users can deposit one asset and earn some other asset.
Now, the question here is, how does Vesper Earn do it? These pools have a different strategy to handle the yield. The token is not swapped outright. When users deposit one token on a platform, Vesper Earn uses that earned yield to buy that token which you want to earn, and then it swaps your token with the other one. Hence, it only programs the yield.