yearn.finance (YFI) Live Price

What Is Yearn.Finance?

Yearn.Finance is a yield aggregator built on Ethereum blockchain. It is considered one of the pioneers in decentralized finance (DeFi). Yield.Finance aims to simplify the DeFi space for investors who are not very technically minded.

Yearn.Finance offers a community-driven and intuitive decentralized asset management platform with several independent products ranging from APY, Earn, Vaults, Zap, Liquidity provision, Lending to Insurance.

The platform deploys automation to allow users to increase their profits through yield farming. Vaults is the most prominent product in the Yearn.Finance ecosystem which maximizes yields through various strategies proposed by the community.

YFI is the native token of the Yield.Finance ecosystem. YFI is used to power the system of automated incentives on this platform.

A brief history of Yearn.Finance

Yearn.Finance has been created by independent developer Andre Cronje. He had originally created the platform as iEarn, which suffered an exploit in February 2022. Cronje had to step out after facing backlash from the community. However, he returned later and rebranded the platform to Yearn.Finance.

Yearn.Finance was officially launched on July 17, 2020. Cronje also introduced YFI token and a new suite of products like Earn, Vaults, uInsure and StableCredit. Introduction of the YFI token proved the gamechanger for the Yearn.Finance project. Its asset under management quickly jumped to $400 within the first week of launch of YFI token.

In order to become a truly community-governed project, the platform decided not to allocate any token to the team or investors. As many as 30,000 YFI tokens were distributed equally among liquidity provider and users.

Anyone who deposited liquidity on Curve yPool and YFI balancer pool in the first week of YFI token launch, became eligible to claim the token. With this strategy, the platform earned a lot of attention.

What Makes Yearn.Finance Unique?

Yearn.Finance has simplified DeFi investment and yield farming for common investors. Acting as an aggregator for DeFi protocols like Curve, Compound and Aave, Yearn.Finance uses automation to help investors earn the highest possible yield.

Vaults, the most popular product of Yearn.Finance platform, act as smart contract-based savings account which maximizes the yield on deposited assets.

The Yearn.Finance protocol deploys smart contract to the Ethereum blockchain and other decentralized exchanges such as Balancer and Curve.

The platform capitalizes on yield farming in which a user locks up his crypto assets in a DeFi protocol to earn more crypto assets. More locked assets result in more token rewards from the protocol to users.

How Is the Yearn.Finance Network Secured?

Like all crypto platforms and digital assets, users of Yearn.Finance platform also face a very high risk of losing money. Crypto markets are extremely volatile and there are many opportunistic players trying to profit from less-experienced users.

Cronje has himself noted that DeFi involves inherent risk. Despite code audits, there is no guarantee that Yearn.Finance is 100% safe, he has said.

The platform is governed by the community. Changes to the Yearn.Finance protocol can be made through token-weighted votes. Users are required to stake their YFI in the governance pool to become eligible to vote and claim for earnings.

Where Can You Buy Yearn.Finance (YFI)?

You can buy YFI token on cryptocurrency exchanges like Binance, Coinbase, OKEx, Huobi Global. It is also available on the automated market maker Uniswap. YFI is a freely tradable token with pairs of cryptocurrencies, stablecoins and fiat currencies.