![]() The protocol was launched in February 2020, and until July 18th it had never exceeded 10 million dollars of TVL.įrom that day onwards, the YFI governance token was launched on the crypto markets, with an initial price of around $34. the total value locked in the DeFi protocol. ![]() In fact, its value has had an incredible growth in just a few months, going hand in hand with the growth of TVL, i.e. The special feature that made Yearn.finance famous, however, is its YFI governance coin. Each one allows lending the relative tokens with which it is possible to buy (DAI, USDC, USDT, TUSD), and allows earning, in addition to the interest, also the trading commissions on the same Curve.fi DEX. ![]() On Curve.fi it is possible to find for example the following yTokens: yDAI, yUSDC, yUSDT, yTUSD. In particular, the lending tokens that are composed inside the yTokens are those of Aave, Compound, dYdX and Fulcrum. In fact, when tokens are deposited on this protocol, they are obtained in exchange for yTokens, which are periodically rebalanced automatically so as to be composed of the tokens of the most profitable DeFi lending services. The solution proposed by Yearn.finance is a self-balancing basket that allows its users to avoid having to carry out these transactions, which are carried out by the decentralized protocol itself. Those who provide their tokens to these protocols for lending, so as to earn interest, often have to change protocol to move their tokens to those that offer higher yields.Įach of these actions requires two transactions on the Ethereum blockchain, increasing costs. There are several DeFi protocols that allow lending and borrowing tokens, and each offers different yields and interest rates. Yearn.finance is an exciting project that represents the potential for DeFi to innovate and provide new value propositions for cryptocurrency is a decentralized ecosystem that uses external DeFi lending services to optimize its loans and has its own coin called YFI. Overall, the benefits of yearn.finance include automation of yield farming, the ability to earn rewards in the form of its native YFI token, and access to value-added services such as the automated vaults. ![]() These vaults are managed by an artificially intelligent agent known as "VaultChef" which dynamically adjusts the allocation of users' funds based on market conditions. Yearn.finance also provides a value-added service by allowing users to deposit funds into its vaults, which are smart contract-based pools that automatically allocate users' funds between various DeFi protocols to maximize yields. YFI holders also have the ability to vote on governance decisions for the platform, giving users a say in the direction of the project. YFI is used as an incentive for users to provide liquidity to the platform, which helps to create a more robust ecosystem. By using the yearn.finance platform, users can access multiple yield farming strategies without having to manually navigate between different DeFi protocols.Īnother potential benefit of yearn.finance is the ability to earn rewards in the form of its native YFI token. One of the primary benefits of using yearn.finance is its automation of yield farming, which is a process that involves moving cryptocurrency across various DeFi protocols to earn the highest possible yield. Yearn more Yearn.finance is a decentralized finance (DeFi) platform that aims to optimize users' returns on their cryptocurrency holdings.
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