Yearn.finance serves as a tool for decentralized finance (DeFi) investors, leveraging automation to enhance profit potential from yield farming. Its main objective is to simplify the rapidly growing and often complex DeFi landscape for those who may not have a technical background or prefer a less intensive involvement than active traders. Initially launched in February 2020, under the name iEarn, the platform has experienced substantial growth with the introduction of new features and its native token, YFI.
Who Founded Yearn.Finance?
Yearn.finance originated from the innovative mind of Andre Cronje. After his departure from the iEarn project in February 2020, Cronje made a comeback, leading to a revitalization marked by the introduction of new functionalities and the launch of YFI in July. Since then, the platform has seen a significant turnaround, with the total value locked surpassing $1 billion by the end of September 2020. Cronje, a prominent figure in the cryptocurrency realm, is closely associated with DeFi and also holds roles at Fantom, a platform for smart contracts, and CryptoBriefing, a resource focused on ICOs and crypto news.
What Distinguishes Yearn.Finance from Others?
Yearn.finance aims to streamline DeFi investments and activities like yield farming for a broader audience. It employs various custom tools to gather and optimize protocols like Curve, Compound, and Aave, offering the best possible yields to those who stake their cryptocurrencies. The platform continues to introduce new features designed to sustain its long-term value. Yearn.finance generates revenue through withdrawal fees, which were 0.5% as of the end of September 2020, and a 5% fee for gas subsidization. These fees can be adjusted through its governance model, which allows changes through community consensus at any time. The platform caters to investors who lack the time to learn the intricacies of DeFi from the ground up or who seek to maximize their returns.
How Many Yearn.Finance (YFI) Tokens Are Currently in Circulation?
The YFI token, integral to yearn.finance, has a limited supply of 30,000 coins. At the time of its launch in July 2020, there was no premine, and the developers did not allocate any initial coins, starting with a total supply of 0 YFI. Since then, most of this capped supply has been released into circulation. YFI reached a peak price of $41,000 in mid-September 2020, marking it as the first cryptocurrency to surpass the value of Bitcoin (BTC) per unit. Users earn YFI by supplying liquidity, and holding the token grants governance rights.
How is the Yearn.Finance Network Protected?
Yearn.finance users are exposed to high risks due to fluctuating market conditions and the presence of opportunistic actors seeking to take advantage of less experienced participants. Andre Cronje has consistently aimed for transparency regarding the platform's origins, emphasizing that even with code audits, yearn.finance cannot be deemed completely secure, as DeFi inherently involves risk.
Where Can You Purchase Yearn.Finance (YFI)?
YFI is a widely traded token available in pairs with cryptocurrencies, stablecoins, and fiat currencies. Major exchanges like Binance, OKEx, and Huobi Global, alongside decentralized exchange Uniswap, offer YFI trading. If you're new to the crypto world and looking to acquire Bitcoin (BTC) or other tokens, you can find detailed guides on how to start.
