yearn.finance

What is Year.finance?

Yearn.finance or YFI token is governance token native to the Yearn.finance platform. The latter represents multi-chain crop growing platform which comes with a set of unique DeFi products. It is deployed on the Ethereum, Fantom and Arbitrum networks.

YFI is based on the ERC-20 token standard. It was originally launched on Ethereum and is believed to be the first community-driven project to be deployed on this network.

As a governance token, YFI provides its holders with voting rights exclusively for Yearn.finance. In addition to voting, holders can also submit their own proposals, called Yearly Improvement Proposals (YIPs), Yearly Delegation Proposals (YDPs), and Yearly Signal Proposals (YSPs). If the submitted proposal receives more than 50% of the votes, it will be integrated into the platform.

The Yearn.finance token was launched during the fair in mid-2022, when 30,000 Yearn.finance tokens were distributed to the first users of the platform. It was no ICO or pre-mining event.

There are 36,666 Yearn.finance coins in total, all of which have already been minted. This could mean that as YFI becomes more scarce, the price of YFI will rise.

YFI coins can be obtained from major exchanges.

You can take a closer look at Yearn.finance’s price history or YFI’s current price in the chart above.

What are the main features of Yearn.finance?

As mentioned in the What is Yearn.finance section, the latter is a suite of products for the DeFi space that mainly serves as a yield farming platform.

Growing a crop in itself is a process locking your crypto assets into a DeFi protocol in hopes of receiving the protocol’s own tokens as rewards.

Yearn.finance supports stablecoins, including DAI, USDC, USDTAnd TUSD. By contributing any of these tokens to the protocol, users receive income-generating tokens. These include yDAI, yUSDT, yUSDC and yTUSD. These tokens were introduced as a result of a partnership with Curve Finance.

Moreover, it has over $103,000,000 in foreign exchange reserves, which are spread across protocols like Aave, Compound, and dYdx to ensure the best returns.

One of The main goals of the project are to make decentralized finance easy to understand.. This way, even investors without technical knowledge will be able to participate and maximize their profits.

Yearn.finance’s other crypto products include yVaults. Yearn.finance describes yVaults as “savings accounts for crypto assets”. Simply put, its main goal is to maximize profits through strategies.

Most importantly, yVaults eliminates the need for deep technical knowledge of the DeFi space to maximize profits. In other words, they serve as a passive form of cryptocurrency investing.

yVaults are considered one of the first DeFi solutions to act as aggregators for yield farming.

Yearn.finance does not charge users to withdraw their earnings, but does charge a 2% management fee and a 20% performance fee.

When it comes to controlproposals that receive the most votes are implemented through a multi-signature wallet consisting of 9 participants. They are chosen by YFI holders and can be changed by voting at any time. For the proposal to be implemented, at least 6 members must sign.

The project is regularly checked by Certik and Quantstamp, but this information is not displayed on the website. This was chosen to alleviate a false sense of security. The founder of the project noted that no platform for growing crops can ever be truly 100% safe, since there is always a certain level of risk.

Before participating in Yearn.finance or any other crypto project, be sure to do your research. You can start by looking at Yearn.finance price history and other statistics in the chart above.

Who developed Yearn.finance?

The Yearn.finance crypto project was originally launched in February 2020 under the name iEarn. Its only founder, Andre Cronjemade some major changes to the project and relaunched it in July 2022.

Andre Cronje started developing Yearn.finance as a hobby in which he tried to automate the switching of capital between lending platforms to ensure maximum returns. Over time, this hobby turned into a complex process that required Andre to invest over $40,000 of his own money into the project to continue development. Approximately the same amount of investment was required for basic audits, hosting and the final launch of the platform.

This means that the entire project was developed and launched from start to finish by Andre Cronje alone. In about 3 months, the cost of the project exceeded $1,000,000,000.

Before launching Yearn.finance, Andre was an active member of the crypto community. He was known for his code reviews on Medium and the origins of Aping, the high-risk activity of buying cryptocurrencies as they launched. The latter means a serious lack of research, which often leads to serious losses for investors.

In addition to his contributions to the crypto sector, Andre Cronje has worked in the fields of financial technology, big data and insurance.