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Yearn.finance: Everything you need to know

YFI

Source: Binance Academy

Cryptocurrency or as commonly referred to as crypto is nothing but a form of virtual currency which is an equivalent of physical currency that we are all used to but better! Crypto is one such industry that has managed to attract many potential investors and even business tycoons from all around the world, which has resulted in an exponential increase in its growth and popularity, at a rate that was never anticipated. 

The crypto world has been around us for quite some time now and looking at the name it has made for itself, I can only assume that a majority of you are already aware of the basics of the industry but if for some reason, you are still not familiar with the entire concept of digital currencies, it is better if we talk about that first. 

Cryptocurrency is a decentralized blockchain-based platform that has the ability to function outside the overall control and supervision of central authorities and can work independently without any unnecessary government interference. Not just that, with numerous transactions happening on the network each minute, crypto is known to use blockchain technology in order to record and verify transactions that occur on the platform, thus eliminating the risk of counterfeiting and double-spending.  

Also, it is probably worth noting that this virtual asset of yours can easily be used for a variety of purposes including the buying and selling of goods and services as well as for the purpose of trade and exchange over crypto exchanges online. As per discussions amongst experts on the field, crypto is said to completely revolutionize the global payment system in the near future, and from where I stand, It looks like the industry is progressing in that very direction already. 

YFI

Source: Medium

In addition to this, a few major factors that contribute to this extraordinary success of the industry include its portability, ease of use, the convenience it offers, high-profit margins, volatility as well as its intuitive nature. Being volatile, the price changes in the marketplace are almost instant and are extremely difficult to predict, thus increasing the risk of investment even further. Note that, if crypto acts as an opportunity for you to earn significantly high profits, if not done right, you could also end up having huge losses as well. 

As of today, there are a lot of currencies available in the marketplace, some of the most popular cryptocurrencies for you to choose from right now include Dogecoin, Cardano, Polkadot, Binance Coin, Bitcoin as well as Baby Doge, to name just a few of course. 

Now that you have a brief backstory about the crypto world, I am sure that you will be able to have a much better understanding of what we have with us today, Yearn.finance. To know more, I suggest you read further!

Everything to know about Yearn.finance (YFI)

YFI

Source: Blockgeeks

Yearn.finance or as commonly referred to as YFI is nothing but an aggregator service for investors of decentralized finance (DeFi), which is known to use automation in order to allow them to maximize the profits earned from yield farming. The project was founded by Andre Cronje about a year ago, back in February 2020. 

In other words, Yearn.finance is a group of protocols that are said to run on the Ethereum blockchain, allowing users to optimize their earnings on virtual assets with the help of trading and lending services. Yearn.finance, also known as yEarn has managed to become one of the most valuable decentralized finance coins in the marketplace while focusing on simplifying the ever-expanding space of decentralized finance for particular investors who are not technically minded or those who prefer to interact in a comparatively less committal manner than serious traders. 

In addition to this, you should probably know that Yearn.finance was formerly known as iEarn and over the past couple of months, it has managed to witness a surge in its growth and popularity as and when new products debuted on the platform as well as after the developers of the project released their native utility token, YFI. 

Since it was first introduced, this next-generation DeFi platform has constantly been able to make waves across the sector and has been built in order to eliminate the most common issues that are currently faced in the marketplace. As a result, today Yearn.finance has a reputation for providing its users on the platform with the highest annual percentage yields (APY) on the cryptocurrencies they have deposited in the industry. 

YFI

Source: Cointelegraph

As per reports, the platform is said to utilize various protocols for decentralized finance (DeFi) including Aave, Compound, and others in order to optimize token lendings, while supporting several stablecoins as well including USDC, USDT, DAI, sUSD as well as TUSD. Also, as one of the most popular emerging projects of decentralized finance, Yearn.finance is known to provide all of its services using only code, thus removing the need for any financial intermediary like a custodian or even a bank for that matter. In order to do this, the platform has managed to develop a system of automated incentives around its YFI token.

It is worth noting that, users on the platform can earn YFI tokens by simply locking virtual currencies in Yearn.finance contracts running on the Curve and Balancer trading platforms for decentralized finance, using Yearn.finance network. As a result, the platform is able to capitalize on a practice that is commonly referred to as ‘Yield farming’, which requires users to lock up their digital assets in a DeFi protocol to earn more and more cryptocurrencies. 

According to this, the more assets the users lock in a platform, the more tokens they receive as a reward by the protocols. Other than this, it is vital for you to know that, in just the first month of its operations, Yearn.finance managed to attract about 800 million dollars in assets, thus making it to be one of the fastest-growing projects in decentralized finance to date. Seeing this trend, the platform has also been listed on the popular crypto exchange, Coinbase, thus helping its growth even further!

What makes Yearn.finance special?

YFI

Source: CryptoPotato

By now you would have understood the fact that Yearn.finance is basically a platform that has been set out to simplify investments and activities in decentralized finance (DeFi) including yield farming for a broader investor sector. As mentioned previously, the platform is known to make use of several bespoke tools in order to act as an aggregator for decentralized finance protocols like Compound, Aave as well as Curve, thus bringing the highest possible yield to those who stake cryptocurrencies. 

In addition to this, new features on Yearn.finance continues to roll out, focusing on helping the preservation of the long-term value of the platform, among other things of course. Also, it is worth noting that, the platform is able to make profits by simply changing withdrawal fees, which is about 0.5 percent as of the end of September last year, as well as nearly five percent gas subsidization fees. 

Not just that, with the help of the governance model that the platform has, these can technically be changed at any given point of time by consensus. Furthermore, Yearn.finance has a target market of investors who are too busy to study the increasingly complex phenomenon of decentralized finance from scratch or even those wanting to optimize their returns. 

Now that we have talked much about Yearn.finance, some of you must be wondering, whether or not it is a good idea to invest in the platform? if that’s the case, then let’s find out, shall we?

Investing in Yearn.finance 

YFI

Source: Market Realist

As of today, the price of Yearn.finance is about 35,602.26 US dollars with a twenty-four-hour trading volume of 441,279,961 dollars. Not just that, in just the past twenty-four hours, the value of the Yearn.finance has gone down by 1.46 percent, and with a market cap of 1,304,385,651 US dollars, the platform is currently placed at #81 position as per the CoinMarketCap rankings. Also, it is worth mentioning that, the current circulating supply of Yearn.finance is nearly 36,638 YFI coins with a maximum lifetime supply of about 36,666 YFI coins.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Yearn.finance is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that Yearn.finance can prove to be a profitable investment in the near future, which is likely to provide you with good returns and it is a possibility that your current investment may increase in value. But again, nothing can be said for sure!

YFI

Source: Nomics

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is extremely important for you to understand the fact that just like any other currency in the crypto marketplace, Yearn.finance does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy Yearn.finance? Let me help you with that. Currently, Yearn.finance is available on all major crypto exchanges but some of the popular exchanges that have YFI listed on them include Mandala Exchange, Binance, Huobi Global, OKEx as well as FTX to name a few. 

In conclusion, what are your thoughts on Yearn.finance? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: EverGrow Coin: Everything you need to know

 

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