Yearn is an exciting project that makes use of the Ethereum blockchain in the Defi space. What does it do? We’ll tell you all about it as we go through some of the most frequently asked questions regarding Yearn Finance.
What is Yearn Finance?
As we mentioned, Yearn is a Decentralized Finance (Defi) project based on the Ethereum blockchain. It’s an open-source network that allows anybody to lend or borrow various assets and currencies on its blockchain.
Additionally, borrowers have the option to repay their loans in any of the fiat currencies supported by the platform. Yearn is the doorway to various Defi products that provide incentives such as yield generation, and lending aggregation on the Ethereum blockchain.
The Yearn protocol consists of several independent products maintained by independent developers and governed by the Yearn Finance token holders. These products include:
- Annual Percentage Yield (APY): A data table reveals the return rate in investment across different lending protocols.
- Earn: Indicates the highest interest rate users can derive by lending an asset.
- Vaults: Accumulation of various strategies designed to create the highest return from other decentralized finance projects.
In 2020, non-profit developer Andre Cronje launched Yearn Finance as an independent project.
Andre received no funding or tokens as the project grew in popularity, making the protocol distinct from other Defi projects. This prompted venture capitals to take notice and led to several significant investments.
YearnFinance’s concept was simple — focus on providing users access to the highest possible yields on their deposited assets.
What is the Native Token of Yearn Finance?
The native token of Yearn Finance is YFI — an ERC-20 token launched to enable users to govern the protocol. This means that anyone with YFI is eligible to vote on the rules when using the protocol.
Furthermore, the supply of YFI tokens is limited to 30,000 (current circulating supply is 36,637.72), and no token was pre-mined. The ecosystem also supports yield farming and delegated vaults, which means users can lock assets inside the protocol to earn using the platform’s native cryptocurrency.
Governance on Yearn
YearnFinance uses its native token YFI for governance. In that, it powers each token holder to take a vote on changes to the application over time. It acts as a coordination mechanism for the Yearn ecosystem, which propels the development of the protocol. YFI tokens serve as the reward given to users or as assets used in gaining returns on the platform.
Additionally, Yearn has a semi-liquid token model which allows tokens to be transferred out of the protocol. This key feature enables users to move their funds should they wish to withdraw from the yield system without being forced into selling their YFI.
There is a prevalent practice of delaying the distribution of tokens for as long as possible in the crypto market, especially when it comes to initial coin offerings (ICOs). In July 2018, however, YFI pioneered the idea of a “fair” launch. This entails ensuring that tokens are dispensed in an equitable, transparent, and truly decentralized manner.
In part, Yearn has built such a devoted following because the founding team received no YFI tokens in advance. As a result, the YFI token increased by USD $1 billion within a month, resulting in an unrivalled show of confidence in true decentralization.
Since the governance token was launched, the yearn ecosystem has become bigger than Andre himself. YFI holders instinctively write software, debate on investment strategies, and promote yearn while the YFI token aids in developing and managing the protocol with little or no oversight.
Moreover, token holders are incentivized to contribute to increase the value of their YFI holdings.
What’s Appealing about Yearn?
What makes Yearn appealing to investors, users, and the Yearn community overall? Here are a few factors that make those in the crypto market take notice of this unique project:
- Earning opportunities: Yearn offers several ways of earning from crypto holdings. This includes: Yvaults, earn, zap, YInsure, and yTrade.
- Minimum token supply. The limited supply of the token, the higher demand puts pressure and Increases in value.
- Accessibility: How accessible a token is could make or break it in the crypto space. This is because it could make a significant impact on liquidity demand and supply.
How Many Yearn Finance Tokens are in Circulation?
There are roughly 36,000 Yearn coins. According to the CoinMarketCap data, the Yearn Finance native token YFI has a circulating supply of 36,638 YFI coins and a maximum supply of 36,666 YFI coins.
YFI has witnessed a surge in value from CAD $40 to about CAD $39,000 since its launch. Furthermore, some crypto analysts, forecasters, and news have predicted YFI to rise significantly in the coming months.
What Wallets Support YFI?
Since YFI is an ERC-20 token, there are plenty of wallets from which you can choose to hold your digital assets. The type of wallet you select will depend on what you plan on doing with your YFI tokens.
For example, if you want to keep your coins for the long haul, a hardware wallet like Ledger or Trezor might be what you need. These are physical devices known for keeping digital assets safe and secure.
On the other hand, if you plan on regularly trading your YFI, you might consider a desktop, mobile, or browser wallet. Popular desktop wallets include Atomic wallet and Exodus, while MetaMask and MyEtherWallet are well-known browser plug-in options.
You may also hold the Yearn you buy on Coinberry, with us. Learn more about our custody here.
Community Support/Social Media
- Reddit –https://www.reddit.com/r/yearn_finance/
- Discord –https://discord.com/invite/6PNv2nF
- Telegram –https://t.me/yearnfinance
- Facebook –https://web.facebook.com/YearnFinance-108376504330043/
- Twitter –https://twitter.com/iearnfinance
- Instagram –https://www.instagram.com/yearn.finance/?hl=en
Where Can I Buy Yearn?
You can buy Yearn on Coinberry by signing up for an account here.
Want to learn more about Yearn Finance? You’re in luck! We have additional content here that tells you all about this unique and exciting project.