Buy YFI (Yearn Finance)
Not everyone knows that Yearn Finance is not just one app and its token but also an ecosystem of multiple protocols. In this article, you will learn how to buy Yearn Finance, invest in YFI and the benefits of this ecosystem.
Yearn Finance is a service token of the DeFi-platform of the same name. There was no presale of the coin - all assets are distributed to platform members as a reward for mining liquidity (revenue farming) and are used as votes in joint decision-making.
In the information section of the platform, a note can be found that the token was created without any value and was not backed by anything. At the time of the first issuance, the market rate was $0.
However, the platform behind the token is genuinely unique.
Yearn Finance positions itself as a DeFi yield aggregator - the platform's protocol accumulates users' funds in pools, transforming them into native tokens, and then automatically determines the most profitable scheme for investing a particular cryptocurrency.
In short, if you didn't know how to invest your USDT before, you can give them to Yearn Finance's vault, and the platform will invest them itself. A fee is charged for deposits and withdrawals.
The global goal of the project is to eliminate centralised Finance (CeFi) and decentralised Finance (DeFi) as they currently exist (complex and incomprehensible to the untrained user).
Where to buy YFI?
Despite the declarative zero value of YFI, the token has quickly become a speculative asset because of its ability to be used in income farming and its integration with several major DeFi platforms at once. You can buy YFI in Qatar:
3. Huobi Global.
It is mainly paired with BTC, ETH and a few Stablecoins. By the way, after the token was listed on Binance on August 10, its market value increased by more than $2,000 in a day. So, all in all, buying YFI will not take you long - register, make a deposit, buy.
Yearn finance protocol
The Yearn Finance ecosystem consists of several DeFi protocols on the Ethereum blockchain. The first protocol is Yearn Finance. Depending on the higher interest rate, it automatically moves funds between several liquidity pools.
Yearn Finance moves the user's assets to where the rate of return is higher.
Andre Cronje created the project. Before the blockchain industry, he worked on big data, insurance and fintech projects. Initially, Cronje developed the protocol for his personal use - he wanted to automate the process of monitoring returns from liquidity pools and moving funds between them. After successfully creating the protocol, he refined it into a full-fledged application and opened it to everyone. Cronje launched Yearn Finance to the public in February 2020.
The project was developed in parallel with the entire DeFi industry during the year.
For example, the developers of many decentralised projects have begun to distribute management tokens to users supplying liquidity. These tokens have their value and are traded on various platforms. However, if you aim to calculate the profit from liquidity supply, it was no longer sufficient to know the profitability percentage - the distribution and value of the control tokens had to be taken into account.
To solve this problem, Cronje developed a system of vaults called Yearn Vaults. Each vault is a smart contract that operates according to a specific investment strategy and has more functionality than the primary yearn finance protocol.
For example, vaults can receive control tokens for delivering liquidity and exchange them for the user's locked cryptocurrency. As a result, the user gets a return percentage for providing liquidity and a profit from selling control tokens.
When the user locks their assets into the protocol, they receive yTokens. For example, in exchange for USDT yearn finance issues yUSDT. The exchange rate of these tokens considers the profits from the liquidity supply. When yTokens are returned, the protocol gives back the blocked amount and the percentage of return accumulated during that time. This is why it is so profitable to invest in YFI in Qatar.
Ways of obtaining cryptocurrency
Receiving as a reward.
An exciting way to generate new YFIs for free is pure revenue farming. Tokens were paid weekly to platform users for providing liquidity in three pools:
- Yearn Finance's vault, available in the Vaults section of the site - essentially, it's a simple stacker. You deposit YFI tokens at 2.85%.
- Y pool on Curve protocol - you deposit stablecoins in the pool and get rewarded for providing liquidity in a curve.fi, then exchange the token for YFI on the platform.
- DAI pool at Balancer - the deposit is 98% DAI and 2% Yearn Finance tokens. As a reward for mining liquidity, we get BPT, which can be turned into YFI here.
- Balancer yCRV pool - deposit ratio is the same as for DAI, only we invest yCRV. Also, BPT is a reward.
The last option is the most complicated because it requires investing in YFI in several stages - first, you need to get a CRV token, invest it in Yearn Finance vault to get yCRV, and invest yCRV in the Balancer pool. Finally, however, the most lucrative - the owner gets rewarded for buying CRV from Curve + new YFIs. How the site creator briefly describes the pools work in his Medium.
It is impossible to get YFI through Balancer pools without having YFI (2% deposit), so you have to either buy on the exchange or work through Curve pool for profitable farming.
Due to reaching the emission limit, Yearn Finance is no longer paying YFI fees, so this method is not relevant right now. However, the situation may change if token holders vote to increase the maximum offer.
As you understand, you can buy Yearn Finance or invest in it to vote for what you tend to see in that ecosystem.
At the same time, YFI has to overcome its difficulties. Andre Cronje has long been the inspiration behind Yearn Finance and YFI, making investors focus more on him. In other words, if he decides to take a break, many will see it as a blow to YFI. On the other hand, some argue that the project is still centred around this key figure (at least to some extent).
This was most noticeable when Cronje announced plans to leave the DeFi space at the beginning of the year. YFI prices then collapsed amid fears of a possible closure of the project.
As Yearn finance continues to expand its team, there will be a lot of changes in the ecosystem. And if decentralised management continues to develop without Cronje's influence, this will no longer be an issue in the future.
Yearn Finance: a worthwhile DeFi project or a "combine" for the income farmer?
The assessment of Yearn Finance's impact on the industry and its role in promoting DeFi is mixed. On the one hand, the information section colourfully explains the complexity of steaking, farming and other DeFi earnings. And Yearn Finance does make the process an order of magnitude more accessible through its solutions and products:
- Investment Automation Vaults;
- ZAP service that reduces conversion fees by order of magnitude;
- Own exchanger and exchange.
And they are also willing to pay users remuneration in the form of YFI tokens, giving them a say in decisions on the further development of the platform and its ecosystem.
On the other hand, Yearn Finance is turning into a real "combine" for income farmers precisely because of its YFI token.
Overall, Yearn Finance is an excellent idea for cryptocurrency and decentralised finance distribution. Still, it seems that it will only show its full glory once the excitement around YFI subsides and a transparent governance structure for the platform is in place.
However, if you sit and wait for something to happen, you could miss out on opportunities. So instead, develop a strategy that suits the cryptocurrency market to grow your capital.
General information on YFI:
- Market capitalisation: $756,944,310.
- Trading volume in 24 hours: $136,216,546.
- Fully diluted capitalisation: $777,586,969.
- Amount of assets involved: (TVL) $5,343,939,655.
- Fully diluted capitalisation/TVL: 0.15.
- Market capitalisation/TVL: 0.14.
- Outstanding: 35,692.
- Total supply: 36 666.
- Maximum volume: 36 666.
Although Yearn finance has a turnover of around 36,000 XNUMX YFIs, its market capitalization exceeds one billion dollars. It is quite popular and therefore listed on several cryptocurrency exchanges. This gives you plenty of exchange platforms to choose from.
Which cryptocurrencies are worth investing in?
This is a tricky question as there are many factors to consider. Let's take a look at the most important ones:
Incidence. Before investing in a crypto asset, find out which countries recognise it and accept it as a legal medium of exchange.
Transferability. Digital money should be easy to move around without too much trouble.
Safety. This is a crucial characteristic of all legal currencies, from the dollar to the pound sterling, which means an excellent digital currency should also be secure.
YFI has already proven to be a valid and complete currency. Also, many who are willing to buy Yearn Finance comprehend the value of this acquisition. We recommend, however, that you be guided by your goals and be careful, full of courage and enthusiasm. It will help you take an exciting path in the cryptocurrency world to achieve your desired goals. Believe in your strength!