He also didn’t keep any tokens for himself.Ĭronje wanted YFI tokens to be used only for the Yearn Finance platform’s decentralized governance, insisting that, unlike BTC, they had no market value. Crucially, Cronje only minted 30,000 YFI tokens, meaning that supply was highly scarce. Rather than conducting a token sale for YFI, he distributed it directly to users who had deposits in liquidity pools that were advantageous for the Yearn Finance project. Firstly, Andre Cronje used a unique token distribution model. The YFI token made waves when it launched this summer for various reasons. Earn is a trimmer version of Vaults supporting only stablecoins and tokenized BTC, while yInsure allows users to take out coverage against smart contract failure. However, now users can also access various other services, including Earn and yInsure. Over 2020, and particularly since DeFi started to gain rapid traction over the summer, Yearn Finance has extended its functionality. Any profit generated from a vault is used to purchase more of the underlying asset. Yearn Finance currently operates several different Vaults covering different tokens, including all major stablecoins DAI, TUSD, USDC, and USDT, along with other combinations of cryptocurrencies. It started out as a set of smart contracts that seek out the best rates of return across various Ethereum DeFi dApps, such as Compound, Aave, dYdX, and Curve, and moves funds around accordingly.
Therefore, he built Yearn Finance as a gateway to other DeFi protocols.
Before he developed Yearn Finance, Cronje had picked up on the fact that the user experience within DeFi is pretty poor if someone is attempting to use different protocols to get the best return on investment. Developer Andre Cronje conceived the project to automate cryptocurrency investments for maximum returns. Yearn Finance launched in February 2020 on the Ethereum blockchain.
Here, we take an in-depth look at Yearn Finance and what’s behind the YFI Token Price. With a sky-high token price, a lone wolf developer widely regarded as a DeFi guru, and a dizzying suite of offerings via its interface, there’s plenty to unpack. One of those projects is Yearn Finance (YFI), also known as yEarn Finance. Amid all the hype, speculation, and general food-themed madness that has accompanied the 2020 DeFi boom, a few projects have stood head and shoulders above the rest.
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