Altcoins: Yearn.Finance (YFI), What Is It - A Deeper Look Into The Yearn.Finance Platform

Altcoins: Yearn.Finance (YFI), What Is It - A Deeper Look Into The Yearn.Finance Platform

Summary:

  • What is the yearn.finance Platform and how does it work?
  • Advantages of the yearn.finance exchange.
  • Yearn.Finance’s past, present and future price positions.

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The Yearn.Finance (YFI) Platform

Yearn.finance (YFI) is an Ethereum based token that governs the yearn.finance platform. The platform is a yield organiser, which moves funds around the decentralised finance (DeFi) ecosystem in an effort to generate a higher return.

Running on the Ethereum platform, the yearn.finance platform's primary focus is to simplify yield farming.

Yearn.finance is an aggregator service for decentralised finance (DeFi) investors through the use of automation, allowing them to maximise profits through yield farming. Its goal is to simplify the DeFi space for those investors who are not technically minded or those who wish to interact in a manner less committal than that of serious traders.

Yield farming is a process of staking cryptocurrencies in an attempt to earn a passive income. The yearn.finance platform is an automation tool that invests into the liquidity pools of various cryptocurrencies and other projects to deliver the best profits.

According to the whitepaper, the yearn.finance platform offers 3 main products:

  1. Earn: refers to the lending aggregator on the platform, and shifts funds between different platforms, users are able to deposit these aggregators to earn interest. The smart contracts linked to the earn lending aggregator ensure that users are earning the highest interest rates at all times.
  2. Vaults: the vaults on the yearn.finance platform are like savings accounts for crypto assets. Users are able to manage their holdings and choose the best strategies to maximise their yields. The platform offers more than 10 different strategies for every kind of user. In addition, the platform also assists users with capital shifting, rebalancing and auto-compounding.
  3. Iron Bank: this refers to lending services for both protocols and users. This service allows borrowing, by using the crypto as collateral. For some whitelisted protocols, this service also offers zero-collateral loans. There are many benefits to crypto-lending, such as:
    1. Low interest costs: due to the assurance of a stable asset, the fees for crypto-lending have moderate interest costs.
    2. Claims: the users have complete control over the whole process, the users can also receive different advantages such as getting the physical money required without actually having to go through the management of the lending site advising to trade owned crypto holdings.
    3. Accelerated crypto funding: offers a face paced transaction, hence there is the ability for a collateral loan reserve to be processed within a few hours of sanctioned approval.
    4. No mandatory credit checks conformities: during the initial investing process, there is no need for a credit screening in crypto lending. The users’ loan access will likely be granted even if the credit is not up to the mark. This can be a lucrative offer for users with unsatisfactory credits.

 

Yearn.finance was launched in 2020, the current circulating supply of YFI tokens is 36,637 tokens and has a maximum supply of YFI is 36,666 tokens, currently 100% of the YFI tokens are circulating. The current market capitalisation is more than $178 million.

Advantages of the yearn.finance platform

  1. The Yearn.finance platform offers some of the highest returns on investments.
  2. Yearn.finance offers a high level of security.
  3. The yearn.finance platform has locked a net value of over $5 billion.
  4. Ease of use of the yearn.finance platform.

Past, present and future prices for Yearn.finance (YFI)

After the launch of the yearn.finance network, the price took off almost immediately, the first spike in price that occurred in September of 2020 and saw the price go above $43,000, and was followed by a gradual but substantial increase. Since then the price rose noticeably again in May of 2021, reaching above the $60,000 level. Since its price peak in 2021, the price of YFI has been gradually declining.

Over the past few months, the markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, yearn.finance falls under this category.

According to some analysts the future price of yearn.finance (YFI) could reach up to $9,138 by 2026 and could see a price of around $11,692 by 2030. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.

Altcoins: Yearn.Finance (YFI), What Is It - A Deeper Look Into The Yearn.Finance Platform - 1 YFI Price Chart

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Sources: coinmarketcap.com, finance.yahoo.com, cryptonewsz.com, coinbase.com, yearn.finance, coinpriceforecast.com

Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.