In the world of decentralized finances (defi) we have different dApps through which users can potentially achieve maximum profits. Sometimes through providing liquidity, sometimes through staking. But if we are being honest, only a number of people understand how this world works.
What is Yearn Finance?
Yearn.finance is a platform that provides the maximum profit to its users through the help of automatic process through yield farming. The goal of the platform is to work in such a way that aims to simplify the defi world for those people who do have the money to invest but don’t have the technical knowledge to understand how the defi works.
Yearn.finance was launched back in February and was known as iEarn at that time but was later changed to Yearn.finance. Since then the company has seen massive growth and has achieved huge amount of value. As of 2020 according to coinmarketcap the total value locked (TVL) assets are around $1B.
How does it Operate?
The platform uses in house tools and acts as an aggregator to provide the maximum yield to the investors through other DeFi protocols such as AAVE, COMP and Curve.
There are two main products of Yearn.finance.
It is a passive income strategy for people which generates yield based on the opportunities present in the market. It is done through automating the yield generation, rebalancing process and automatically shifting capital.
Here the funds are shifted between AAVE, COMP and dYdX as the interest rate changes hence providing the users with maximum yield. This makes sure that the funds stay at a place where the maximum interest rate is being provided.
The Native Token YFI
The native token of Yearn.Finance is YFI. The whole ecosystem is controlled by the YFI whose holders can vote on new policies. At the time of writing YFI is being traded at the price of $35,248. The price has decreased by almost 2.98% in the past 24 hours. The daily trading volume has also increased by almost 123.34% in the past day. YFI had created its all time high around the price of $95,000 during the month of May 2021. After that the price dropped down to a level of $23,549 before showing sign of reversal. There are only 36,666 YFI coins ever. Their circulating supply is maximum but YFI is quite rare in the market.