yearn.finance is one of the biggest DeFi projects on the market. Since launching several years ago, yearn.finance has continued to wow investors with its many promises. Today, many crypto investors are looking for an opportunity to add yearn.finance to their crypto portfolio. Read today’s guide for everything you need to know about yearn.finance and whether or not it is a good investment. But before we get into all the interesting details, here is a quick overview of yearn.finance.
An overview of yearn.finance
For starters, yearn.finance is a leading DeFi project running on Ethereum protocols. This DeFi project allows users to stake and deposit ERC20 tokens in return for daily rewards. This is made possible via staking pools, where users allot capital for an opportunity to get mouthwatering returns. The yearn.finance ecosystem has a native digital currency called YFI. This token is important for governance and helps power transactions on the yearn.finance DeFi platform.
yearn.finance is lauded for its brilliant suite of DeFi products, including insurance, yield generation and lending aggregation. Since this crypto project launched, at least 30,000 YFI tokens have been minted.
Some of this project’s mainstays include Vaults, which doubles as the capital pools that power passive investment, lending aggregator and Earn ecosystem. yearn.finance also has a product called Zap. This product makes it insanely easy for users to swap in and out of several liquidity pools.
What is special about yearn.finance?
Before yearn.finance launched, many crypto enthusiasts interested in DeFi had to rely on each protocol to stake independently. This meant they had to master the ins and outs of different projects. But yearn.finance has now provided a solution for all that. By leveraging yearn.finance, users no longer have to explore different DeFi platforms to participate in yield farming projects.
The yearn.finance platform aggregates different blockchain protocols, making it possible for users to stake tokens one time with Yearn Finance, which then unlocks access to several interest-generating blockchain protocols.
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As yield farming opportunities continue to evolve, yearn.fiance protocol rebalances, taking full advantage of earnings.
When did yearn finance launch?
Yearn.finance is a brainchild of Andre Cronje, a renowned crypto developer. He single-handedly developed the technology that powers the yearn.finance ecosystem. The project was launched in 2020 and has continued to gain traction, especially with the explosion of decentralized finance.
Unlike other crypto projects, which typically receive venture funding, yearn.finance received no funding. More so, the developer of this project did not reserve any tokens for himself. When yearn.finance kicked off in July 2020, it had its native cryptocurrency, the YFI, which powers transactions within the yearn.finance ecosystem.
Today, yearn.finance is one of the most successful DeFi projects out there, with the platform reportedly having more than $650 million worth of digital assets staked by users.
The YFI token at a glance
Being a native token of the yearn.finance ecosystem, YFI functions as a governance tool. This means that by holding YFI tokens, users can decide the course they want a protocol to head. Since the YFI token was introduced in July 2020, it has grown to become the biggest Ethereum-based digital coin in the crypto industry. Its relevance is because it focuses on automated yield farming strategies.
We like to think of YFI as a machine embedded with artificial intelligence technology whose responsibility is digging out the best yield-bearing projects within the Ethereum DeFi spectrum.
To protect the yearn.finance ecosystem against inflation, the community has adopted a policy; setting the maximum cap of YFI to 30,000 tokens. Unfortunately, some people disagreed with this policy, resulting in a fork now known as YFII or DFI.money.
While the initial agreement was to keep the maximum supply of YFI at 30,000 coins, the YFI cap was increased to 36,666 in February 2021.
How can you earn YFI tokens?
The yearn.finance protocol is designed to allow users to earn YFI tokens. To earn YFI tokens, users only have to stake digital currencies in yearn.finance contracts operating within the Curve and Balancer DeFi trading platforms.
By leveraging yield farming, a unique practice where users receive crypto assets for delegating their digital assets, yearn.finance users are able to earn YFI tokens. So if your goal is to earn YFI tokens passively without doing so much, you’re welcome to take advantage of yearn.finance yield farming protocol.
Features of yearn.finance
Yearn.finance success didn’t happen overnight. The team behind this crypto project had to put in a lot of work to develop a framework that has helped the project stand tall. Compared to other DeFi projects, yearn.finance has some of the most outstanding functionalities and features. Here, check out some of the most exciting features of yearn.finance that have made it what it is.
- finance: This remarkable feature guarantees that users can achieve short and long-stable tokens with up to 1000x leverage. While shorting digital currencies used to be a luxury not accessible in the crypto ecosystem, yearn.finance has made it possible via its ytrade.finance product.
- finance: This incredible feature ushered in loans in Aave. These loans are used to facilitate and liquidate funds whenever possible.
- finance: By leveraging the Aave protocol, this feature is able to tokenize debt. Once minted. Once minted, the debt could be applied to succeeding DeFi protocols. This process ensures that yearn.finance can continue to infuse fresh liquidity into the market.
- exchange: This is a very vital feature of the yearn.finance ecosystem because it enables users to store their funds, especially from the different DeFi protocols scattered across the yearn.finance platform.
Note: Aave is an Open Source and Non-Custodial protocol applied to earning interest on deposits and borrowing assets.
Yearn.finance in summary
Yearn.finance is considered by financial analysts to be a gateway to a massive collection of yield-aggregating products. It is powered by the Ethereum universe.
Following the explosion of DeFi in 2020, more and more people are showing interest in yearn.finance. This has increased stake assets on the yearn.finance ecosystem to $650 million.
Many crypto professionals consider yearn.finance to be an intuitive interface to all of DeFi.
Unfortunately, many beginner crypto investors may find it hard to grasp because of its multifaceted ecosystem.
How can you store YFI tokens?
Besides simply keeping your YFI tokens on your eToro portfolio or storing it using an eToro Money crypto wallet, you can also store your YFI tokens using a hardware wallet. Hardware wallets are known as cold storage. Since hardware wallets aren’t connected to the internet, it is nearly impossible for hackers to access them. Some popular hardware wallets include Ledger Nano S and Ledger Nano X, which both support the YFI token.
How can I open a YFI wallet via eToro?
To store your YFI tokens using the eToro Money Crypto Wallet, you’ll first need to transfer your YFI position using the eToro trading platform registered in your name to a crypto wallet bearing the same name. The cool thing about using eToro’s Money Crypto wallet is that you don’t incur any special fees for transferring the crypto to the wallet. More so, the entire process of opening a YFI wallet is simple and only takes a couple of minutes.
Investing on YFI
Even though the crypto industry is known for its insane volatility, traders are always looking for opportunities to benefit from the market. That said, part of the reasons why many investors put their money in yearn.finance it is because it is a leading player in the DeFi space. By allowing users to earn rewards on staked assets, yearn.finance has become one of the most attractive projects in the crypto and DeFi ecosystem.
With dozens of decentralized finance products, yearn.finance has continued to provide opportunities for users to make passive income without doing much. Although the platform may be a little challenging to navigate for newbies, with due diligence, you should get the hang of how it works.
Yearn.finance has a lot of potential. It has stood strong even in the midst of a scorching bearish winter. As developers work to improve the ecosystem, there are bets for yearn.finance to continue to increase in value.
How to buy YFI
Even though there are several ways to buy and trade YFI, the easiest option is to open an account with an exchange like Kraken, Binance, BitPanda and others. That said, brokers like eToro have made it insanely easy for users to buy and trade YFI. Many users love eToro because they make the entire process of buying and trading YFI seamless.
How to trade YFI on eToro
- Before you can start trading YFI on eToro, you need to first open an account, that’s if you don’t already have one. If you’re signing up for an account for the first time, it will interest you to know that signing up for an account on eToro takes only a few minutes. More so, you’re only required to submit basic information.
- After signing up for an account, you’ll need to have your eToro account funded. Thankfully, eToro supports multiple payment methods, including credit/debit cards, PayPal, bank transfer, and more, so funding your account won’t be an issue.
- With your account now funded, you can navigate the eToro dashboard and click on the “Trade Markets” option.
- On the page that pops up, select crypto.
- Scroll down through eToro’s crypto selection and choose yearn.finance (YFI).
- Click on the buy button and choose the amount of YFI you would love to purchase.
- Click on the open trade option, and you’re good to go.
Now, the big question is, how do you know that you’re getting a good YFI price on your trade? Well, that’s pretty simple. eToro provides you with different features, including a chart, which lets you see the current YFI price. Also, you get added information about this digital asset, making it easy for you to decide if investing in YFI is a good move.
Besides making it easy for investors to buy YFI tokens, eToro is loved by many users because of its transparent trading fees. With eToro, you don’t have to worry about being charged any hidden fees.
If your goal is to invest in YFI and you’re looking for a broker that makes the entire process seamless, you won’t go wrong to give eToro a try.
