While this increases the risk, it also increases the yields since different yield farming systems have different earnings ratios. The protocol works by taking user funds and distributing them to other DeFi-based platforms such as Aave and Compound. The project leverages the power of the Ethereum (ETH) blockchain. The platform rewards users for providing liquidity or depositing their virtual currency on the platform to ignite lending. Yearn is a decentralized protocol aimed at powering blockchain-based finance, commonly referred to as decentralized or distributed finance.
Cronje has a computer science background, and his experience spans from big data, financial technology (Fintech), distributed ledgers, to insurance. Yearn (YFI) is the brainchild of Andre Cronje, a computer programmer. Many lending protocols support the YFI token, including popular ones like Aave, Compound, and dXdY.Before we look at the basics of the platform, let’s look at its team.
Yfi staking how to#
It’s as democratic as it can be, letting every token holder have a say in how to run the Yearn.finance platform. YFI holders can vote on rules governing Yearn.finance. This token has one of the fairest distributions such that no single individual holds an outsized percentage of tokens. DisbursementĪll the supply of YFI tokens has been disbursed to liquidity providers, with none set aside for the founding team. For instance, it has a daily trading volume of over $20 million on Binance, implying ample liquidity. YFI is a top-traded asset on different exchanges, such as Binance and Coinbase. YFI uses the Ethereum blockchain, so the network’s speed depends on congestion in the network and the gas fee you pay to process a transaction. The limited supply makes a single token pretty expensive, costing over $8,000 as of writing. There’s no additional supply, so users must trade these limited amounts between each other.
The total number of YFI tokens in circulation is 36,666. YFI holders can vote on the rules governing the Yearn.finance platform. YFI is the native token of Yearn.finance built on the Ethereum blockchain. Alternatively, the price of BTC may decrease and bring more losses, so beware. If the price of BTC rises 10% after a month, you can sell your position for a $1,100 profit instead of just $100 without leverage. Using leverage can increase your trading profits (and losses).įor instance, if you place a $1,000 trade on BTC with 11x leverage, that means you’ll borrow $10,000 and spend a total of $11,000. This feature lets you open long and short positions on stablecoins - DAI, BUSD, USDT, and USDC - with up to 1000x leverage. The fee varies depending on the transaction pool, but you can expect between 0.1% and 5%. You can deposit tokens into liquidity pools in exchange for a share of transaction fees charged to traders using that pool. Yswap is a single source to manually deposit funds into different DeFi protocols. Flash loans are useful for arbitrage trading and debt refinancing, and they help infuse liquidity into crypto platforms. This feature allows users to get flash loans, which are uncollateralized loans borrowed and returned within seconds. Lending is an effective way to put your assets to work and earn rewards instead of having them do nothing, and Yearn.Finance makes it easy by offering users access to different vaults where they can deposit money to lend to others and earn pre-determined interest rates.įor example, if you have $50,000 USDC and find a vault offering 5% interest after 90 days, you can deposit your funds and claim $2,500 in interest at the end of 90 days. This feature enables you to lend your crypto assets like DAI and USDC and earn interest of up to 50%.
Yearn.finance constitutes an ecosystem of crypto investment features, including iborrow.finance
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