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What is the Yearn.Finance (YFI) project?
Yearn.Finance (YFI) is a suite of products in Decentralized Finance (DeFi) that provides loan aggregation (lending/borrowing), profit generation (yield) and insurance (Cover) on the Ethereum blockchain. . The protocol is maintained by various independent developers and managed by YFI holders.
Yearn.Finance as a digital bank helps users maximize profits by depositing their funds into Yearn.Finance pools. Then the system protocols will send your money to lend on the lending platform like Aave, Fulcrum, Compound… with the strategy of maximizing profits as much as possible. You get back yTokens, profit interest and rewards if any based on pools and automatically distributed by the system.
How it works Yearn.Finance (YFI)
The most popular protocol in this ecosystem is Yearn.Finance which automatically moves user funds (deposited/locked funds) between DeFi lending protocols like Compound, Aave and Dydx to maximize APY profits (Annual profit year). The entire Yearn.Finance ecosystem is managed and developed and managed by the community through holding YFI tokens.
What makes Yearn.Finance (YFI) unique?
Yearn.Finance sets out to simplify DeFi investing and activities such as increasing productivity for the broader investor sector. The platform uses different staking engines to act as an aggregator for DeFi protocols like Curve, Compound and Aave, giving crypto bettors the highest possible returns. New features continue to roll out, which, among others, are meant to help preserve the platform’s long-term value. Yearn.Finance makes a profit by charging a withdrawal fee, currently 0.5% at the end of September 2020, as well as a 5% gas subsidy fee. Due to its governance model, these can technically be changed by consensus at any time. Yearn.Finance’s target market is investors who don’t have time to study the increasingly complex DeFi phenomenon from scratch or who want to optimize their returns.
The Ecosystem of Yearn.Finance (YFI)?
The Yearn.Finance ecosystem includes decentralized finance (DeFi) products (pools) with the following core products:
After connecting the wallet to deposit with an available amount of capital, then the tool automatically generates a profit based on the existing opportunities in the market.
Users deposit any amount of crypto-assets and earn interest-bearing tokens with the most profitable strategy and the most limited risk reduction. This is a form of passive investment.
Vauts profits come from a mechanism that provides liquidity to earn gas fees, automates profit generation and rebalancing, and automatically moves capital when opportunities arise. The end user also does not need to have a thorough knowledge of the underlying protocols involved or DeFi, so Vault represents a passive investment strategy.
The advantages of Vaults vaults are that they use assets as a form of liquidity, use assets as collateral, and manage to avoid default. Lend stablecoins and send stablecoins for lending, reinvesting earnings.
Currently yVaults has 21 pools with 4 pools in version 2 and 17 Pools in version 1. Added Hegic token for mining.
As shown in the picture, I can see that yVaults Pools estimate a profit rate of 1.6-34.48% depending on the Pool I provide liquidity.
The fee for withdrawing money to the wallet on the yVaults pool in case the vault has no idle money is as follows:
yEarn’s first product is a lending aggregator for stablecoins DAI, USD, USDT, TUSD, SUSD, and wBTC. Funds are transferred automatically between dYdX, AAVE, and Compound pools as interest rates change between these protocols. Therefore always optimize the highest profit achieved.
A tool that allows users to swap in and out (called “Zapping”) of several liquidity pools is available on Curve.Finance. These pools benefit from the loan aggregators discussed above, as well as earn user trading fees by partnering as a Liquidity Provider (LP) on Curve.Fi . Currently, users can stake five stablecoins (BUSD, DAI, USDC, USDT, TUSD) and “Zap” into one of two pools (y.curve.fi or busd.curve.f) on Curve. Additionally, users can “Zap” from these two Curve pools and into one of the five base stablecoins.
Insurance allows users to receive insurance against financial loss for various smart contracts and/or protcols on the Ethereum blockchain. Cover written by Nexus Mutual
During the insurance period (before the expiration date) if a token is subjected to a hack attack, bug, mining or economic manipulation and there is a significant loss of margin from that token’s smart contract or matching system smart contract with funds transferred to another address that is not controlled by the original owner(s), or the generated funds are permanently irrevocable. You will get 1 DAI back for each token for each collateralized token.
Currently Cover supports insurance for smart contracts such as Curve, Aave, Balancer, SuShiSwap, Yearn. Finacne, BarnBridge, Badger, Mushrooms, Perpertual, Nexus Mutual, Inverse, CoreVault, Frax, Augur, Stablize, Idle, Tether, YfDFI, 88mhp, Rari Capital, Original
What is the Yearn.Finance (YFI) token?
Yearn.Finance token is an ERC-20 token, the native token of the Yearn.Finance platform that is mined during the implementation of liquidity mining for Yearn.Finance pools. The function of the YFI for the system is to administer and vote on the system’s protocols.
YFI does not have a pre-sale and does not open any open sale for any investment fund units. Even “DeFi god” – Founder of Yearn Finance – Andre Cronje does not hold any YFI tokens.
Currently, YFI has the following incentives:
- Governance: YFI holders who have staked YFI can propose and vote on issues of token distribution, token supply, tokenomics, fees, etc.
- Reward: YFI holders who staked and voted on the governance proposal will receive a reward.
Rewards in yEarn come from:
- Interest rate yearn.finance.
- COMP from Compound.
- CRV from Curve.fi.
- Transaction fees from curve.fi/y pool.
- ytrade.finance leverage fees and bonuses, liquidation.
- Basic system fee of yswap.exchange.
- Liquidation Bonus iliquidate.finance.
- System dust (interest or non-confirmation fee).
Some basic information about the Yearn token. Finance (YFI)
- Token Name: Yearn.Finance
- Ticker: YFI
- Blockchain: Ethereum
- Token Standard: ERC20
- Token Type: Management Token (Governance)
- Contract Address: 0x0bc529c00c6401aef6d220be8c6ea1667f6ad93e
- Supply of circulation: 29,969 YFI
- Total supply: 30,000 YFI
YFI is distributed entirely through Liquidity Mining. No pre-sale, no pre-mining, no participating investment funds. The founder of the project also does not hold this token.
YFI’s distribution rate is 10,000 YFI/week. By the time of writing, the total supply of YFI is gone.
When was Yearn.Finance (YFI) born? Who is the founder of Yearn.Finance?
Launched in January 2020, This Service formerly known as iEarn, has seen tremendous growth in recent months as new products launch Yearn.Finance and developers issue Tokens inside YFI.
Yearn.Finance is the brainchild of Andre Cronje. After leaving the iEarn project in February 2020, Cronje returned to oversee the regeneration process, with new tools appearing and YFI up and running in July. Since then, its fortunes have changed, with deposit/locked assets in this ecosystem around over $1 billion at the end of September 2020. Andre Cronje has had a long career in the crypto space and has become an ally of DeFi in particular. He also holds positions at Fantom and CryptoBriefing smart contract ecosystems, which are a resource dedicated to Initial Coin Offerings (ICOs) and known by the crypto media.
How to earn and own YFI Token
Currently, with a total supply of 30,000 YFI, the system is almost 99% fully exploited. Like other digital currencies, YFI is a Token, a digital currency, freely tradable with widely available cryptocurrency pairs, stablecoins and fiat currencies.
Major exchanges that trade YFI include Binance, OKEx and Huobi Global or can be purchased on Uniswap.
YFI Token Storage Wallet
Yearn.Finance (YFI) is an ERC20 token so you can store it on today’s standard wallets like:
- Trust Wallet
- Coin98 Wallet
Should you invest in Yearn.Finance?
Yearn.Finance is now past the mining phase. The YFI token only plays an administrative role in the system. Yearn.Finance is a DeFi platform that helps users maximize their profits instead of researching investments and learning different tactics in a complicated way. With Yearn.Finance as a trust fund organization today.
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