What is yearn.finance (YFI)?
is an aggregator service for decentralized finance (DeFi
) investors, using automation to maximize profits from yield farming.
The goal is to simplify the ever-expanding DeFi space for investors who are not technically inclined or want to trade in a less committed manner than serious traders.
YFI is the native cryptocurrency of the Yearn.finance protocol. It is a governance token that allows users to vote on which direction they want the protocol to go.
Who founded yearn.finance (YFI)?
Yearn.finance, was launched in early 2020 by Andre Cronje and is an Ethereum-based protocol that aims to allow users to benefit from returns on deposits of ether, stablecoins and altcoins.
Andre Cronje is a South African developer within the world of financial technology, which was triggered to build Yearn.finance after discovering inconsistencies in the returns of various DeFi applications.
How does the yearn.finance work?
The primary function of the protocol is called Vaults. It allows users to deposit cryptocurrency and earn returns (yields). The deposited funds are managed by a strategy that focuses on maximizing returns and minimizing risk. From its launch, Vaults were primarily focused on stablecoins, but have since expanded to include support for ether, tokenized Bitcoin products, Chainlink
and other coins.
Vaults are important because they help keep the high transaction costs on Ethereum lower. By pooling capital, only one account (the controller of each Vault) has to pay transaction fees (gas) when farming the profits.
Yearn.finance also offers other services. Earn is a simplified version of Vaults that supports only stablecoins and tokenized bitcoin. Zap allows users to exchange traditional stablecoins for tokens for liquidity providers representing stablecoins.
Can I make money with yearn.finance (YFI)?
Yes, you can earn money by trading yearn.finance (YFI)
. Buy low, sell high. Yearn.finance can be used to trade against other cryptocurrencies. Always trade responsibly. Often the price is influenced by yearn.finance news. Buy yearn.finance at Coinmerce.