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- 1 Yearn.Finance is an aggregator service for decentralized finance (DeFi) investors.
- 2 The platforms using automation facilitates users to maximize the profit from yield farming.
Yearn.Finance is made to facilitate the users who are not technically minded and wish to interact in a less committed manner. The service was launched in 2020 and was formerly known as iEarn.
It is a decentralized ecosystem that provides the highest annual percentage yields (APY) on the deposited cryptocurrencies. It combines different technologies to reach centralization within the sector. The company never hosted initial coin offerings. There was never a pre-mine YFI token.
The platform facilitates proprietary protocols to increase investor yields. The users of Yearn enjoy a streamlined approach to DeFi. The platform provides security and open-source code that has been evaluated by the community.
The cryptographic programmer Andre Cronje is behind Yearn.Finance. He is confident about the platform and was the first one to put his money on the platform.
Cronje has a long career in cryptocurrency. He also has positions at smart contract ecosystem Fantom and CryptoBriefing. These are resources dedicated to initial coin offerings (ICOs) and crypto media.
How Yearn Finance Works
Yearn is an open-source network that automatically moves user funds between DeFi lending protocols based on the ROI of their investment. The platform moves the holding to different platforms in order to maximize the yield. Some of the reputable yield farming platforms include Compound and Aave. This protocol continuously monitors the market leaders to confirm that the funds remain in the highest-paying pools. Yearn.Finance currently supports DAI, USDT, USDT, USD, and TUSD.
When the user deposits the amount in Yearn.Finance, the platform converts it into an equal amount of tokens. Ytokens are the yield-optimized tokens and these are the amounts that are shuffled between different yield-generating platforms to benefit with maximum outputs for the users.
The platform charges small fees for maintenance and efforts of the network. The fee is deposited to the Yearn.Finance pool. Only ytoken holders have access to the pool.
Yearn Features
Yearn.Finance simplifies the DeFi investment and activities such as yield farming. The platform has some distinctive features which make it unique. Some of the features are discussed below:
ytrade.finance: This facilitates the user to long and short stablecoins with 1000x leverage. This next-level protocol has converted the dream of shorting cryptocurrency into reality.
yliquidate.finance: This feature introduces fresh loans in Aave. The purpose of this loan is to liquidate the funds properly and efficiently when needed.
yswap.exchange: This allows users to deposit funds to and between various DeFi protocols.
iborrow.finance: With the assistance of Aave, this platform tokenizes debt in other protocols. Once the debt is tokenized, it is used on additional DeFi protocols.
YFI Token
YFI token is the main governance token of the Yearn finance network. It serves many purposes within the system. It is used to govern the platform. The platform community is governed by voting. A user’s say in decisions on platform proposals depends on the governance tokens held by the user. Implementation is possible once 33% of the token holders agree.
The maximum supply of the token was pre-mined the only way aside from trading on exchanges to get YFI is by providing liquidity to one of the yearn finance platforms.
The market cap of the token is $273,665,421. At the time of writing, it is ranked 139 on CoinMarketCap. The total value locked of the token is $334,431,943. The token has a circulating supply of 36,647 YF. The total supply of the token is 36,647.
It is available on exchanges like Kraken, Kucoin, Paybis, and WazirX.
With features and returns, Yearn.Finance has found a distinctive place in the market.
Yearn.Finance consists of 4 independent products:
APY: it is a data table that shows interest rates across different lending protocols.
Earn: It identifies the highest interest rates that users can earn by lending the asset.
Vaults: It is designed to generate the highest returns from other DeFi projects.
Zap: It saves costs and labor and bundles several trades in one click.
Summary
Users earn YFI tokens by locking the cryptocurrencies on this platform. The users lock up crypto assets in a DeFi platform to receive more cryptocurrency. The users are rewarded by the protocol on the vase of assets they lock. The more the assets locked the more will be the award. It is the best way for users to get interested in lending. It works by searching along different protocols on Aave and Compound and finding the best interest rates.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
