Yield Aggregator
A DeFi protocol that automatically moves your funds between different strategies to maximize returns.
Explained Simply
Yield aggregators like Yearn Finance, Beefy, and Convex automatically compound rewards and optimize yield farming strategies across multiple DeFi protocols. Instead of manually harvesting rewards and redepositing, the aggregator does it for you — often achieving better returns through auto-compounding and gas-efficient batching. Aggregators charge a performance fee (typically 10-20% of earnings). They simplify DeFi participation but add another layer of smart contract risk, since your funds interact with multiple protocols.
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