Learn more about Yearn.finance, a relatively unknown lending aggregator that has become one of the most popular digital currencies and the most expensive cryptocurrency at over $ 27.
Yearn.finance installed protocol with the aim of ensuring the maximum annual percentage rate of return (APY) for cryptocurrencies owned by its users. The protocol (YFI) is unique in the sense that the company gives token holders control over all management rights, and assets worth more than $ 200 million are currently locked in the protocol. This made YFI a popular commodity and got a lot of people fighting for a piece of the pie.
The Brain Behind Yearn.Finance
Yearn.finance was founded by André Cronier, a somewhat introverted character and once a rogue programmer. He studied law at Stellenbosch University but dropped out after three years to pursue a computer science program at the CTI Education group, completing a three-year course in less than a year. He has worked for several financial and crypto institutions such as Lemiscap, Kosmos Capital, CryptoCurve, etc., using his rich experience to develop Yearn.finance.
Cronje became a cryptocurrency enthusiast and realized that he needed to simplify and fully automate his crop growing processes in order to generate high profits. He has done a lot of research and analysis on the crypto market and the high yields offered for stablecoins in the decentralized financial protocol piqued his interest.
This has sparked a desire to actively invest in these protocols and manually transfer investment funds to platforms with the highest annual returns. While developing a program that would switch between DeFi protocols to increase profitability, he discovered that he could increase the productivity of the market and make it public. In this light, the yEarn token was created in collaboration with Curve Finance and Aave.
He made Yearn.finance mainly to optimize profitability, and this was achieved by borrowing and lending assets at the highest interest rates. To simplify the process, he codified the program. This allowed him to automatically switch between different profitability providers at the time and opened up the ability for users to deposit and withdraw funds.
Cronier spent $ 42 on construction and almost double that on audit and hosting, and, remarkably, did not take some of the capital for himself as a founder, even when he had more than $ 000 in debt; he preferred to farm the token himself, as any other user would. According to him:
“Yearn is a profitable system. It was profitable from day one and I was able to recoup all the expenses I needed and so I didn't feel the need to assign any tokens when I was happy to play by the same rules as everyone else. ”
Everything you need to know about Yearn.Finance
Yearn.finance is a set of decentralized finance (DeFi) protocols aimed at creating a simple and efficient way to generate high-risk adjusted returns for savers of multiple assets through lending, liquidity pools, and community-driven protocols on Ethereum.
Yearn.finance's vision is to provide optimal return on investment for users by automatically moving funds between DeFi lending platforms like Aave and dYdX to get the maximum annual interest rate. Yearn.finance users can earn both lending fees and trading fees on platforms by integrating yTokens converted from tokens deposited by the user by implementing an Automatic Market Maker (AMM) between yUSDT, yTUSD, and yDAI.
What is YFI cryptocurrency?
YFI is simply a governance token available to the Yearn.finance ecosystem. It is developed and used exclusively on the Ethereum (ERC-20) platform. YFI can be liquidated with yTokens and the fact that it cannot be pre-mined or ever given to the founder as capital confirms the belief that it is one of the most decentralized tokens currently on the market. The maximum number of YFIs is a meager 30, and they have all been distributed within the ecosystem.
YFI was created to ensure that the management of the system is the exclusive property of the community.
It turned out that the community did not agree with this opinion, seeing the current value of YFI, and now it can be traded on Uniswap and other platforms.
In an attempt to increase the flow of liquidity into the Yearn.finance ecosystem, YFII is being developed; this token has a maximum supply of 60000 and will be distributed over three months.
Main products
Vaults: These are community-developed mining robots that follow a specific roadmap to reduce investment risk and maximize returns.
Earn Money: They operate according to the yVaults design and earn profit by automatically switching funds between lending platforms.
Zap: This tool allows the user to switch between different stablecoins and a variety of interest-bearing stablecoins. Users can also save on gas fees by either connecting directly or exiting them, or bending pools of underlying assets.
Coverage: This is mainly related to insurance as the yInsure protocol provides financial loss insurance for various smart contracts and product offerings signed by Nexus Mutual.
How does Yearn.Finance work?
Yearn.finance is quite simple to understand than other DeFi platforms; it involves moving funds from one asset pool to another (Compound, Aave and DyDx). These funds move from the pool of assets with the least generated APY to the largest, thereby increasing returns. Other stablecoins such as DAI, USDC and USDT can also be used.
The stablecoins deposited by the user are converted into yield-optimized tokens known as yTokens. These funds are then automatically transferred between Compound, Aave and dYdX, depending on the pool with the highest yield.
A certain percentage is deposited in the Yield.finance pool, which gives income in yCurve (yCRV). This y (CRV) allows the user to exchange their accumulated funds in the yield.finance pool for management tokens in the Yearn.finance ecosystem. Thus, the user can earn YFI cryptocurrency. AND
Another way to earn YFI is to deposit 98% - 2% DAI and YFI into the balancer pool to earn balancer tokens (BAL). BAL tokens are then deposited with yGov to receive YFI. A third option is also possible. It involves depositing a combination of YFI and yCRV into Balancer to be exchanged for Balancer pool tokens, which are deposited with yGov to receive YFI tokens.
The Yearn.finance community is built in such a way that the ingenuity of its members is encouraged and rewarded. Anyone can suggest a new plan. If accepted by the community, the contributor to the strategy gets some of the interest that comes from using anyone's protocols in Yearn.finance. Users can also follow current YIPs through the official twitter of the Yearn.finance or yEarn forums.
Hack and predictor Aviator
Yearn.finance's journey has been nothing short of exciting as it has become the world's most expensive cryptocurrency, currently in excess of $ 30; it has taken DeFi's position to a whole new level with its features and ability to work with other existing DeFi protocols. YFI price stability is also a big plus as prices are determined by the number of locked assets in the Yearn.finance protocol pools.
Yearn.finance's vision of turning the platform into a community-driven platform is also a welcome development as it gives users more power and control over their assets, with impressive ROI and excellent risk management, Yearn.finance is sure to appeal to both. existing users and potential investors.
We hope this is just the first of many innovative advances in the DeFi niche in the near future.