What is YFI? What is Yearn Finance (YFI)? Yearn Finance is an aggregator service for decentralized finance (DeFi) investors. It uses automation to allow investors to maximize profits from yield farming. Launched in February 2020, the service, formerly known as iEarn, has seen huge growth as new products debuted and developers released the in-house token YFI. Yearn Finance's goal is to simplify the ever-expanding DeFi space for investors who are not technically minded or who wish to interact in a less committal manner than serious traders. Yearn Finance runs on the Ethereum and Fantom blockchains.
Read more: What is Defi?
How does Yearn Finance work? Yearn Finance consists of several DeFi products that include: lending aggregation, yield generation, and insurance. It initially began only as a lending aggregator. In a lending aggregator, cryptoassets are automatically switched between lending platforms in search of the best yield. From there, Yearn launched an automated yield generator, allowing participation from investors who don't have the knowledge or time to understand DeFi.
History of Yearn Finance Yearn.finance started out as a service called iEarn. The predecessor to Yearn.finance was launched by Andre Cronje in February 2020. Cronje left the project, but returned to oversee an overhaul. By July 2020, new tools, a new name (Yearn.finance), and a native token (YFI) were live. Yearn.finance first launched on Ethereum, but is now also available on Fantom.
How can you use Yearn Finance? Yearn Finance has several products that help you optimize certain DeFi activities.
How can you use YFI? YFI is an ERC-20-token used for governance on Yearn Finance. To participate in governance, YFI holders must stake their YFI. When a user votes, the staked YFI is locked for three days. Users that vote earn a percentage of protocol profits for each of Yearn's products at regular intervals. Andre Cronje describes this as, "dividend, not a yield strategy."
Read more: What are ERC-20 tokens?
Price history YFI launched in July 2020 and by early September it reached a price of $44,000. It bottomed soon after in November to around $7,500. From November 2020 to May 17, 2021 the price increased to a peak of just over $95,000. Since then it's been in decline, currently sitting around $19,000. Buy YFI now Check out our live price chart of YFI. When you're ready, swap into YFI in the Bitcoin.com wallet. If this is your first time using the swap feature, check out the tutorial below to learn how you can easily swap into YFI and other cryptocurrencies in the Bitcoin.com Wallet. You can also get it on the Bitcoin.com Exchange where you'll have access to advanced trading tools, futures markets with leverage, and yield generation via the AMM+. Learn more about the Exchange here. |
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