Buy YFI (Yearn Finance)
YFI is the Yearn finance protocol's cryptocurrency. A management token allows users to decide how the protocol will evolve.
Since its launch in July this year, YFI has become one of the most oversized Ethereum-based tokens, as the protocol has focused on automated yield farming strategies.
Yearn finance is a robot that aims to find the best returns in Ethereum DeFi.
This article will discover a lot about Yearn finance cryptocurrency, how to invest in YFI, and how to buy Yearn finance.
Ways to get YFI cryptocurrency
While the CEO initially implied that the only way to become a holder was to act as a liquidity provider for his aggregator, by 2021, there were more options:
- Buy the coins on the exchange.
- Make a deal through intermediaries.
According to a review of the YFI cryptocurrency, it is traded on many platforms. These include top centralised exchanges (CEX) and decentralised exchanges (DEX) such as OKEx, Binance and Huobi Global. If you want to buy YFI in the Philippines, we recommend looking at these exchanges. Try to choose proven and reliable exchanges.
The advantage of this buying method is high security, but the user needs to understand the functionality and order types. Furthermore, not all CEXs also allow fiat entry. The token standard is ERC-20. It is also available on many DEXs created on Ethereum, such as Uniswap.
In addition to exchangers, there are exchangers, bots, P2P platforms and individuals who allow you to buy management tokens. A list of intermediaries with the best conditions and a good reputation is published on the monitoring sites.
What is Yearn Finance in simple terms
YFI is a management token issued on the Ethereum network. Its standard is ERC-20. The smart contract address is 0x0bc529c00C6401aEF6D220BE8C6Ea1667F6Ad93e. The coin is divisible up to 18 decimal places. As conceived by the developer, it was created purely for management purposes: to allow holders to vote for changes and improvements to the protocol. This step was important to achieve decentralisation.
In an early interview, the project CEO said he had created a 100% useless token with no natural backing. A. Cronje emphasised that the coin had no financial value, no mining, no ICO and could not even be bought anywhere.
But although the CEO said that the management token would not go on exchanges and could not be mined, the crypto market began to evolve differently:
- The Balancer AMM protocol has made it possible for investors to earn tokens for providing liquidity to a decentralised exchange or pool.
- Earnings in tokens were credited for making deposits into Yearn Finance developments and products.
- The token began trading on the significant decentralised exchange (DEX) Uniswap in July 2020 before being listed on Binance in August.
- The token eventually became financially valuable, rising from $3 to a record $82,000. In addition, it was used off-platform for trading and investing.
The story of yearn finance
Andre Cronje is a programmer who lived in South Africa. He became interested in cryptocurrencies and blockchain back in 2015. But for the first three years, he was only a spectator. In 2018, however, he started writing reviews of initial coin offerings (ICOs) for an information resource. He also started advising blockchain start-ups and funds: Fantom, Fusion, Wanchain. At the same time, Cronje was investing and trying to generate passive income from stablecoins.
In February 2020. Cronje launched Yearn Finance (formerly iEarn).
At first, it was only used by André Cronje himself. Then he opened it up to other investors. Initial funding issues were handled unconventionally:
- There was no ICO.
- No venture capitalists were involved.
The project's founder spent personal funds: $42,000 to launch the platform and another $84,000 for hosting and auditing. To do this, he had to take out a home loan and borrow another $20,000.
André Cronje had to face criticism already at this stage. Some users thought that if one developer created the project, he could steal the coins put on the platform. The service was in demand from a limited number of investors until the summer of 2020. But the turning point was the release of the management cryptocurrency YFI in July 2020. At that point, anyone could already buy Yearn Finance.
Existing liquidity providers received all 30,000 tokens. None were allocated to the developer, which was welcomed by the cryptocurrency community.
From the summer of 2020, the platform began to gain popularity. By September 2020, blockchain assets (TVL) amounted to $1+ billion. As of December 2021, the service ranked 8th among DeFi with $4.15 billion. André Cronje has been referred to as the "father of DeFi".
How can I invest in YFI?
The project's target audience is investors who do not desire to investigate the DeFi sector in depth but still want to make high passive profits from farming. The platform will automatically match the best conditions.
Farming, profitable farming is a designation of the same process, where the user earns from the coins they already have. Liquidity providers or providers contribute assets to specific smart contracts (pools). In exchange, they receive rewards in cryptocurrency.
Main instruments available to invest in YFI in the Philippines:
- yVaults vaults. These are analogous to a savings account for cryptocurrencies, which generate passive income for users. Deposits are made to them and then channelled through strategies to DeFi-protocols to generate the highest possible returns with minimal risk. Not only stablecoins can be deposited, but also other coins. The advantage of yVaults is lower fees on the Ethereum network. When capital pooling takes place, only one account pays the fee in gas to start farming.
- Woofy. In May 2021, the project developer banteg launched a new two-way peg to the native crypto yearn finance. It has a fixed rate: 1 YFI = 1,000,000 WOOFY and, consequently, a lower price. The exchange at these terms can be done through any contract of the same name or an exchange.
- yveCRV. This is a Curve DAO token. CRV can be deposited in the yveCRV repository. This will generate revenue from commissions from Curve Finance and additional sources, bonuses. Weekly rewards arrive in Curve's LP 3pool as a combination of USDC, DAI, USDT stablecoins. CRV tokens deposited are permanently locked in. This CRV investment is more profitable than investing through Sushiswap and Pickle.
- Zap. You can easily deposit yVaults via Zap. Tokens traded on Uniswap with a slippage rate of up to 1% will be suitable. yVaults will accept the coin, convert it to what it needs for the vault and add in 1 transaction. On withdrawal, the Holder can receive ETH, Wrapped ETH, Wrapped Bitcoin, Stablecoin USDC, DAI, USDT.
The main characteristics of the native token are below.
- The top spot on CoinMarketCap in December 2021: #104.
- Market capitalization: $894+ million.
- The lowest rate on centralised exchanges: $739.44 (July 21, 2020).
- Historic high rate: $93,435.53 (May 12, 2021).
Distinguishing features of YFI
Yearn finance (YFI) is a native cryptocurrency aggregator DeFi. The features of the project and its coin are vital if you want to buy YFI:
- YFI is an ERC-20 standard management token. The developers use the Ethereum network and have no plans to launch their blockchain in 2021.
- Although the coin initially, according to the creator, had no value, it became the first cryptocurrency to overtake BTC in the matter. In May 2021, the coin was trading at $82,000. By comparison, Bitcoin's record price (current data as of December 2021) is $68,789.
- The main product is the DeFi aggregator, which investors can farm as much as possible.
- The project has achieved decentralisation. Holders can create proposals, vote for or against them. And 1 coin = 1 vote.
- Andre Cronje created the project. The whole DeFi sector is associated with his name. In addition to Yearn finance, he made yCredit (a platform where you can deposit ERC-20 coins and receive credit in return, expressed in yCredit cryptocurrencies at 99.5% of the deposit), a non-investment grade LBI meme-token.
André Cronje created the coin with one goal- to achieve the project's decentralisation. Each Holder was given the right to participate in the management: 1 unit of YFI cryptocurrency = 1 vote. Futhermore, anyone can create a proposal and participate in the discussion. By December 2021, dozens of recommendations had been accepted.
Holders can contribute ideas for developing the project.
But as the exchange rate has risen since the release of the coin (~$24,000+ as of December 2021), not all regular users have a sufficient amount. Therefore, to participate in the management, they can delegate their share to large holders. Those set the minimum amount in tokens themselves. In December 2021, this was more than >0.01 or from 0.1 coin.
After the holder votes, their management assets will be blocked for three days. After that, they will not be able to be withdrawn.
Additional functionality of the coin:
- Investors who participate in the management also receive rewards in native tokens of the system. In addition, they receive a % of the platform's fees.
- The token is suitable for investing and trading.
- Holders also receive a portion of the commissions that have been paid for any use of the ecosystem products.
The future and prospects of YFI
The project does not have a unified and unchangeable Roadmap, as management has been handed over to the Coin Holders. They vote for and against any innovations.
In December 2021, the main focus was on launching and refining the third version of the aggregator with additional tools for passive income.
The developers plan to improve the platform's functionality, interface, and interaction with other networks in the future. In addition, the increased popularity and convenience of the aggregator could give grounds for the growth of the price of the native token.
DeFi projects that provide financial services are becoming a trend lately. Either loans or deposits. The trick is that the coins are in the blockchain, but the developers do not have them. Yearn finance is just such a project. Funds can be transferred to the platform, converted into other tokens, then used on other services. To solve this problem, its token was issued. Of course, we recommend you always consider the risks and be aware of any type of investment. But remember, he who does not take risks does not drink champagne. So believe in your strength and go for your dream!