One of the most interesting Defi projects is Yearn Finance crypto, because it has the highest value compared to others, in the article about Yearn Finance review from several points of view.
For starters, at the time of writing YFI’s price at Price: $ 58,796, up 9% on the day. And the highest price of YFI tokens is $ 63,285 with a market capitalization of over 2 billion USD, with a total value locked at $ 4,253,303,351.
YFI’s maximum supply is 36,666 and currently, already 100% circulating in the public.
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- 1 What is Yearn Finance (YFI)?
- 2 Who is the founder of Yearn finance?
- 3 How does Yearn Finance work?
- 4 Yearn Finance how to use
- 5 Yearn Finance token
- 6 Yearn finance support
- 7 Yearn finance Reddit
- 8 Yearn finance vs Bitcoin
- 9 Yearn finance yield farming
- 10 Yearn finance price
- 11 Yearn finance 2
- 12 Final Thought
What is Yearn Finance (YFI)?
Yearn Finance is one of the projects in Decentralized finance (Defi) which in its business provides loan aggregation, revenue generation, and insurance. Yearn Finance uses a platform on the Ethereum blockchain.
For investors, Yearn Finance is a pool to increase investment. Because the Yearn finance protocol is managed by an independent developer whose way of working is regulated by the YFI holder.
Yearn finance explained
In Yearn finance has five kinds of products as in the following description.
Yearn finance vault
This is Yearn Finance products that can provide results based on the opportunities that exist in the market.
Earning comes from socializing gas costs, automating yield generation and rebalancing processes, and automatically shifting capital when opportunities arise.
Yearn Finance claims there is no need to have advanced knowledge of Defi so that Vault represents a passive investment strategy that is suitable for beginners as well.
Yearn finance earn
This product represents a lending aggregator. Users can deposit to the aggregator protocol via accrual process the user will get the highest interest rate at any time among the specified platforms.
Existing funds will be transferred between dYdX, AAVE, and will be Compounded automatically when interest rates change.
Yearn finance Zap
This is a Yearn product that represents a tool for swapping in and out of “Zapping” the multiple liquidity pools available on Curve. Finance.
This will benefit users as well as earn trading fees by participating as a Liquidity Provider (LP) on Curve. Fi.
This product supports five stable coins namely BUSD, DAI, USDC, USDT, TUSD, and can enter and exit into one of the two pools (y.curve.fi or busd.curve.f) in the Curve pool.
Yearn finance insure
This product represents similar insurance for financial loss protection for various smart contracts and/or protocols on the Ethereum blockchain. This Yearn finance insurance product is covered by Nexus Mutual.
Yearn finance gift
This product represents a gift service to users, where users can send gifts that can be embedded with mp4 images and videos to the recipient. To use this service via the yGift website. It uses an NFT token, or non-fungible token, which cannot be replaced with other coins.
This requires an ETH or ENS address to create a gift, as well as the user can collect gifts, so this needs to be connected to the ETH wallet.
Who is the founder of Yearn finance?
Perhaps no one would have guessed that Yearn finance was designed by rogue programmer Andre Cronje.
Why is it rogue? because he dropped out of college before finishing studying law. But on the other hand, Andre Cronje has successfully completed a 3-year computer science program in just 6 months.
Despite being offered a job where he studied, he went into the private sector, working in insurance, fintech, big data, and distributed ledger technology.
Cronje started researching cryptocurrencies only because his partner got married, otherwise, it was possible that he would never have been involved in the crypto space.
How does Yearn Finance work?
The way Yearn Finance crypto works are actually easy to understand, that is, users will save stable coins in Yearn finance crypto. Then the stable coin is converted into yToken which is equivalent to the number of stable coins (for example, DAI becomes yDAI. The yDAI token will be optimized for earn and also exchange for YFI tokens.
However real funds by Yearn Finance will be deposited into the shuffle protocol automatically in the highest yielding Compound, Aave, and DyDx pools. The protocol also takes small chunks stored into the Yearn finance pool which only YFI token holders have access to.
Yearn Finance how to use
Yearn Finance crypto is a Defi project that runs on the Ethereum blockchain, where to use Yearn Finance the workflow is as follows:
- Users deposit tokens to Yearn Finance.
- The deposit token is then converted into yToken, if the user deposits with ETH it will be converted to yETH. USDT converted to yUSDT, etc.
- The yToken in the Yearn Finance network can be used for farming, getting annual percentage yield (APY), lending, earning YFI, and covering services on the platform.
Yearn Finance has several pools including Compound, AAVE, Curve, and dYdX. The user can select the pool he wants to dive into.
Yearn Finance token
YFI is a cryptocurrency token created by Cronje which holds the governance of Yearn Finance. YFI for governance printed only 30,000 of which 6,666 were printed as part of the YIP-57, and others have been fully distributed. But governance can mint a lot more YFI if proposals to do so pass.
Because YFI runs on the Ethereum blockchain, the YFI token can be said to be an ERC-20 token.
At the time press YFI token has surged up a sharp 33% in a day and hit $ 73,530, this is incredible, it even surpasses Bitcoin. Daily volume actually increased by 474.13% to a total of $ 2,291,631,522.
This increase is also inseparable because YFI is already listing on major exchanges such as Binance and DEX such as Uniswap.
How to get a YFI token
In summary, there are three ways to get YFI, the first is through yPool, namely Curve Finance, which allows you to trade with stable coins where you will get yCRV.
The second way is to deposit a mix of 98% -2% DAI and YFI into the Balancer protocol which will be rewarded with BAL tokens. his BAL token is then sent to yGov to earn YFI rewards.
The last method is to deposit a mix of YFI and yCRV to Balancer to get a BPT (Balancer pool) reward. The BPT token is then saved to yGov to get the YFI token. YFI is designed so that each of the 3 pools will have 10,000 YFI tokens up for grabs.
Yearn finance support
Specific support contacts are not available on the official Yearn finance website, however, there are four communities where fans can get information related to YFI. The four communities are as follows:
On Twitter, Yearn Finance has more than 114.1K followers, and you may get a reply if you have any problems using Yearn Finance services.
While in the Discord community there are 14593 members, with an average online membership of more than 2 thousand people.
Meanwhile, at Github, Yearn finance currently has 28 contributors from various countries. Github may be difficult to understand for the layman, but it’s an open-source community for programmers.
While in the medium, it contains many articles by the founder of YFI, Andre Cronje, who has 5.3K followers who allow him to get updated information about YFI.
For product introduction support, users can visit the docs.yearn.finance page which contains a lot of useful information to get to know Yearn Finance more closely.
Yearn finance Reddit
The Yearn finance community can also discuss in the Reddit forum, where the address of this subforum was created in September 2020 with 5.3K members, the average active being hundreds of users on this forum.
You can find Yearn Finance Reddit at the address r/yearn_finance .
This forum is quite active where members often make new posts, either sharing experiences or submitting questions.
You can find useful information from other members, and even share your own experiences in the community. If you have questions, other members will usually give their opinion, so that the Yearn Finance Reddit community helps grow.
Yearn finance vs Bitcoin
Maybe the public will wonder why YFI is so much more expensive than Bitcoin. Is YFI better than Bitcoin?
Some of the basic things that differentiate Yearn Finance and Bitcoin are prices, market capitalization, and function.
Looking at YFI’s current price at $ 79,269.00, while Bitcoin is at $ 55,914.02. YFI price is above $ 23 adrift compared to Bitcoin.
But talking about market capitalization, Bitcoin is far superior to YFI, where Bitcoin reaches more than 1 trillion USD, while YFI is still around 2 billion USD.
Meanwhile, the main function of Bitcoin since its creation is for a payment system solution without intermediaries. Meanwhile, Yearn Finance crypto focuses on the annual Yield platform, through a lending mechanism that uses governance through smart contracts.
Why YFI higher than Bitcoin?
There are several reasons why YFI’s price is higher than Bitcoin:
- The price or demand increases due to the limited supply of tokens as there are only 3,666 YFI tokens available.
- The total value of assets blocked on the Yearn Protocol affects its popularity and performance of the Ethereum network quite significantly. This means that the platform will remain to exist.
- There is ongoing work in the development of the YFI protocol project. This involves not only the introduction of new products but also enhancement and optimization of user experience products and research on object access data management capabilities.
- The platform that is owned is rare and difficult to build so that FYI has selling power.
However, even though YFI’s price is higher than Bitcoin, according to one of the exchange’s CEOs, that doesn’t mean YFI is better than Bitcoin, it’s market capitalization that is the assessment.
Yearn finance vault tutorial
Crypto users can double their money through the Yearn finance Vault, some of the steps needed to try in the Vault pool are as follows:
- Having a crypto wallet, for example, Metamask, if you don’t have one, you have to register a wallet first.
- The crypto wallet must have funds in one of the required cryptocurrencies, if not available, have to buy it on an exchange for example Coinbase.
- Connect your wallet via Yearn finance vault, then choose the Vault option.
- Fill in the amount to be deposited, then click deposit.
- Confirm the transaction and pay a fee.
- Next, check your wallet and take a look at yToken, if you deposit DAI you will get yDAI rewards.
- Monitor the growth of your investment, and make withdrawals if you feel that there is enough profit.
Even though the Yearn Finance vault offers returns, there is also a possible risk caused by, bugs in the smart contract, as well as other token damage that might damage the entire network.
Yearn finance yield farming
Yearn finance yield farming only refers to the function of Yearn Finance which is a lending aggregator platform, where users can invest or take farming terms, which must plant, care for, and harvest.
Meanwhile, Yearn Finance users are able to deposit, choose Vault and wait for rewards, and finally withdrawals.
Yearn finance price
At the end of July 2020, YFI’s price was still very low, around $ 1, but then it significantly increased to $ 2, even $ 4 in the same month.
In early September 2020, the price formed a new high at $ 37 but fell again in the same month to reach $ 21. Slowly but surely the price returned to rise and formed a new high at $ 41 still in September 2020.
But after that, the price went down again and reached a low of $ 8 in November 2020. But after that, the price gradually went back up. At the beginning of January 2021. The price was still increasing until it formed a new high of $ 48 in February.
In April the price again formed a new high at $ 53. And an all-time high occurred in mid-May 2021 at $ 88.
Yearn finance price prediction
The increase in YFI demand has pushed prices to soar high in 2021. Several leading forecasting sites such as Longforecast predict YFI prices can reach $ 346 by the end of 2021. Then 2022 will rise high to reach 469 predictions in June. And predictions for 2023 will fall to $ 383.
The prediction from Coinpedia is different. Whereby the end of 2021 the YFI price will reach $ 95. This may be quite reasonable with the current price of $ 78. Coinpedia further predicts YFI 2022 to hit $ 158 by the end of the year and YFI’s 5-year prediction of reaching $ 310.
The prediction from Coinpriceforecast for YFI is fantastic. With a return of 281% at the end of the year from the current price of $ 78. There is no price drop with a prediction that until 2032. It will achieve a return of more than 1,550% with prices as high as $ 1315.
Gov Capital provided a reasonable prediction. YFI will provide a return of 21% at the end of 2021 at a price of $ 94.
Yearn finance 2
Many crypto enthusiasts know Yearn Finance v1 has had its own success with soaring prices. Yearn Finance 2 is a fork of Yearn finance version 1 which is better known as YFII or DFI.money.
YFI was also discovered by Andre Cronje. It was launched in July 2020, this was done after YFI’s mining and farming ended. After submitting the proposal did not meet the requirements. The group decided to hard fork and create DFI.money with the YFII token.
That is only a brief explanation of Yearn finance 2, it may require further exploration in a separate article.
YFI has listed as one of the Defi projects whose popularity equals Bitcoin. With a price that is much higher than Bitcoin, it provides a potential gain in the future.
But apart from this potential, the risk may also occur due to bugs or token damage which results in losses. Always wise in investing is a safe way to prepare for risk from the beginning.
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