Are you a DeFi enthusiast? If yes, then you might be well aware of Yearn.Fiance(YFI). Due to the YFI price rally, the DeFi space gained huge user attention and adoption. Moreover, following the YFI surge, many DeFi tokens also established their strong presence that further led to a DeFi boom in 2020. However, very soon after the May 2021 crash, the DeFi tokens appear to have adopted a sideway trend as the NFT took over the market in a very short period.
Interesting Fact: Yearn Finance(YFI) is the only token that rose like a monster to hit the levels very close to $100K. It registers the highest ATH compared to all the other cryptocurrencies in the market including Bitcoin!
However, the most popular DeFi token known for its gigantic run during the 2021 bull run is still expected to showcase its strength in the upcoming rally. No doubt the current trend is a little shaky yet with the end of the consolidation phase, most of the assets do showcase huge potential to ignite a remarkable bull run and YFI may lead the race.
So what is YFI, what does it do, why does it gain such huge attention from the crowd? Let’s dive deep below!
Introduction to Yearn Finance(YFI)-In Brief
Yearn Finance popularly known as YFI is the brainchild of the popular South African programmer Andre Cronje. It is a group of protocols that runs on the Ethereum blockchain that generates revenue using crypto assets. It offers multiple products by which users can earn passive income with their crypto. DeFi came into mainstream trading for the fact that it showcased its potential to be a ‘Decentralized Bank’ offering similar products without the interference of any third party. And YFI is considered as one of the leaders of the DeFi space.
YFI focuses on providing the highest yields(interest) on deposits of ETH or Stablecoins or any altcoins. The protocol offers VAULTS that allow the users to deposit their cryptocurrency and earn yields. The protocol mainly focuses on the popular practice called ‘Yield Farming’ where users lock up their assets to earn more cryptos.
Interesting Fact: In just a month of operation, the platform attracted nearly $800 million in assets which made it the fastest-growing DeFi project ever
The native token of the Yearn Finance protocol is an ERC-20 token YFI which has showcased its strength since the day of its inception. The asset surged gigantically from just $30 to $30,000 in just a month and later on went to hit the highest levels in history which is around $96,655. Currently, despite having fallen into a deep bearish well, the asset can manifest its gigantic strength yet again in 2022.
Additional Read: Daily Crypto News 21 January, 2022
How Does Yearn Finance Work?
Yearn Finance is a protocol designed to deploy Smart contracts on the Ethereum blockchain and the Decentralized exchanges like Uniswap, Balancer, etc. The protocol’s main features lie within the lending and trading of crypto assets with huge profits. And to do so Yearn Finance offers multiple products.
It is a process where-in the protocol searches across different lending protocols to offer users the best lending rate
It stands for Annual Percentage Yield which searches across the lending pool and provides an estimate to the users on how much interest one can expect for a certain amount on an annual basis.
Vaults are the collection of various investment strategies which are designed to generate the highest returns. It is considered one of the complex services which use the platform’s self-executing code.
Zap allows users to bundle several trades at a single click which saves additional costs and time.
Will YFI Price Hit $100K in 2022?
The YFI price remained pretty much active ever since the very first day of its inception in the crypto market. The asset started its journey with a pre-sale price of just $30, the asset rose like a monster to hit levels more than $30,000 in just a month, bringing the DeFi space into mainstream trade. However, like many other assets, YFI also underwent multiple up’s & down’s yet successfully roared high to surge beyond $96K during the 2021 bull rally.
Further, the platform underwent multiple fundamental upgrades and forks. And as the asset was already trading at its highs, it forced the traders to look out for other options. Therefore this led to the shift of focus on other assets and YFI lost its glory of let. Yet the community and the investors are pretty sure of a significant uptrend that may ignite due to upcoming platform upgrades. And therefore, the YFI price which is said to be capable of surging with a huge margin may lead the upcoming bull run. The current ATH of the YFI price is very close to $100K and hence if a similar bull run occurs in 2022, then the price is sure to hit $100K.
Additional Read: Yearn Finance Technical Analysis
Factors Impacting YFI Price Today
Multiple Earning Streams
Yearn Finance offers multiple ways to earn for the users on its platform. It offers products like yVaults, Earn, Zap, yInsure, yTrade, etc which attracts huge interests or yields.
YFI Always Focused on Expansion path
Yearn Finance aims to dominate the DeFi space and hence has collaborated with other leaders of the space like Pickle Finance, Cream Finance, Cover Finance, Akropolis, SushiSwap, etc
The YFI protocol supports the key aspects of DeFi’s architecture called Automated Market Maker(AMM), Decentralized Lending, and minting synthetic debt which is still in beta.
Easily Accessible & Scarce
YFI is easily accessible and hence draws liquidity with any obstacles. Another important aspect of the asset is the limited YFI supply. Earlier the total supply was limited to 30,000YFI tokens, where-in the founder and the development team held none of them. However, the upper limit was then revised to 36,666 by voting through a proposal.
YFI-The Governance Token
YFI is a governance token, and the holders have the right to vote for the proposals for the betterment of the platform. The more tokens users hold, the more power your vote holds in any proposal.
Where & How to buy Yearn Finance(YFI)
The best place to buy Yearn Finance (YFI) at an affordable cost is CoinDCX, as the reason buying YFI on DEX may attract huge gas fees. CoinDCX is the most popular cryptocurrency exchange in India offers a top-notch secured platform to trade. Being the country’s first Unicorn project, CoinDCX offers multiple products to deal with.
With the CoinDCX App, one can unlock the world of hassle-free trades at affordable rates. The improved version of the App offers multiple benefits like faster order placements, unlimited access to charts, etc with a brand new design.
Registering with CoinDCX is very simple, just download the app on your smartphone and register with the required details. The user and bank verification are done in minutes, offering a unique onboarding experience. So download the app now and start your trading journey with ConDCX.
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