What is Yei Finance (CLO)?

Deep Dive

1. Integrated DeFi Pipeline

Yei Finance functions as a core DeFi utility on Sei, merging two primary services. Its YeiLend is a non-custodial money market where users can supply assets like SEI, USDC, and WETH to earn yield, or borrow against collateral (Akiii | 🧠SENT). Its YeiSwap is a decentralized exchange that uses yield-bearing tokens from the lending pool as liquidity, allowing liquidity providers to earn both trading fees and underlying lending interest. This integrated design aims to improve capital efficiency within the Sei ecosystem.

2. Cross-Chain Ambition with Clovis

The project is expanding beyond Sei through Clovis, described as a "Cross-Chain Clearing & Execution Layer" (Yei Finance). This system is designed to let users deposit assets once and access yields across multiple chains like Arbitrum and Ethereum. The goal is to transform Yei from a single-chain lending protocol into a hub for managing liquidity across different blockchain networks.

3. The CLO Token's Role

The CLO token serves as the project's governance and incentive mechanism. Holders can participate in decision-making for the protocol's future. The token is also distributed to users as a reward for activities like supplying liquidity or trading, aligning user growth with network participation. It launched in October 2025 and quickly became a central asset within Sei's DeFi landscape (The Defiant).

Conclusion

Yei Finance is fundamentally a DeFi building block on Sei, integrating lending and trading to capture value within its ecosystem, with a strategic roadmap focused on multi-chain interoperability. Will its Clovis layer successfully attract cross-chain liquidity and user activity?