Yearn.finance was launched by independent developer Andre Cronje in 2020. Notably, Cronje did not receive funding for the Yearn.finance protocol and did not reserve any tokens for himself before the launch of Yearn.finance. This distinguishes Yearn.finance from most DeFi projects, which typically raise investment from venture capital funds and then assemble a team to develop the protocol. In July 2020, the Yearn.finance platform launched its YFI. For the latest news about the project, follow letizo.com, where you can follow Bitcoin Gold token price and many other projects.
What is Yearn.finance?
It is a group of protocols running on the Ethereum blockchain that allow users to optimize their crypto-asset income through credit and trading services.
One of a lot of new decentralized finance (DeFi) projects, Yearn.finance provides its services using only code, removing the need for a financial intermediary such as a bank or custodian. To do so, it has built an automated incentive system around its YFI.
The Yearn.finance platform consists of several independent products, including:
- APY — a data table that shows interest rates on various lending protocols.
- Earnings — identifies the highest interest rates that users can earn by lending an asset.
- Vaults — a set of investment strategies designed to maximize profits from other DeFi projects.
- Zap — which aggregates multiple transactions in a single click, saving on costs and labor.
Users earn YFI tokens by locking cryptocurrencies into Yearn.finance contracts running on the DeFi trading platforms using the Yearn.finance platform.
Thus, Yearn.finance uses a practice commonly called “crop farming,” in which users block crypto assets in the DeFi protocol to earn more coins. The more assets users lock onto the platform, the more tokens they receive through the protocols.
In its first month of operation, the Yearn.finance platform raised about $800 million in assets.
How the project works. Yearn.finance Network price prediction
Yearn.finance is a protocol designed to deploy contracts on the blockchain. These are technologies unique in the marketplace that allow positive Yearn.finance Network price predictions.
Lending and trading
Most Yearn.finance services — Earn, Zap and APY — aim to allow users to lend or trade. Earn is a way for users to get the best lending rates, and it works by searching through various lending protocols such as Aave or Compound to find the best rates.
Users can then deposit their DAI, USDC, USDT, TUSD, or sUSD on the Yearn.finance platform to get those interest rates. Similarly, Zap allows users to make multiple investments with a single click. For example, a user can exchange DAI for yCRVin one action compared to three actions on the Yearn.finance and Curve platforms. This saves the user time, opportunity cost, and transaction fee.
APY (which stands for annual percentage yield) searches the lending protocols that Earn uses and gives the user an estimate of how much interest they can expect to earn annually for a given amount of capital.
Vaults, Yearn.finance’s most sophisticated service, allows users to follow active investment strategies using the platform’s self-executing code. In this sense, vaults are similar to actively managed mutual funds.
Still, in the experimental stages, these strategies are expressed in Solidity, which means that the user will need some familiarity with the code to understand how the Vaults work.
However, investing in Vault is not difficult. Yearn.finance Network token price has a growth perspective The Yearn.finance user interface allows the user to invest popular coins such as DAI and USDC in each strategy, with each strategy reflecting historical investment returns. And as an alternative option for investing, you can consider Bitcoin Gold price prediction.