What is Yearn?
Yearn Finance aspires to be the entry point into the Ethereum ecosystem’s plethora of yield-generating goods.
Yearn enables consumers to maximize their earnings on crypto assets by using lending and trading services.
Yearn.finance is one of a range of new decentralized finance (DeFi) initiatives that offers services solely by coding, without the requirement for a financial intermediary such as a bank or custodian.
To do so, it has built an automatic reward scheme based on its YFI cryptocurrency.
Users receive YFI tokens by utilizing the yearn.finance network to lock cryptocurrencies in yearn.finance contracts operating on the Balancer and Curve DeFi trading systems.
Yearn.finance takes advantage of a method known as “yield farming,” in which consumers store crypto assets in a DeFi protocol in order to gain more cryptocurrencies.
The protocols reward users with more tokens the more properties they lock in a platform.
How does Yearn Work?
yearn.finance is a protocol for deploying contracts on the Ethereum network, as well as other open exchanges like Balancer and Curve that operate on it.
Earn, Zap, and APY are three of yearn.finance’s offerings that aim to allow users to lend or exchange their cryptocurrency.
Earn is a service that allows consumers to locate the best interest rate on credit by looking through various lending protocols such as Aave and Compound.
Users will then deposit their DAI, USDC, USDT, TUSD, or sUSD to collect certain interest rates on the yearn.finance website.
Similarly, Zap enables users to complete several investments with a single touch.
APY (annual percentage yield) scans through all of Earn’s lending protocols and offers the user an average of how much interest they may hope to earn on an annualized basis on a given sum of money.
Vaults, yearn.finance’s most advanced service, allows developers to use the platform’s self-executing code to follow successful investing strategies.
Vaults are similar to actively run mutual funds in this regard.
Users stake cryptocurrency in yearn.finance’s smart contract to win YFI.
Yearn.finance’s key feature is that it earns a high rate of interest on cryptocurrency invested in its smart contracts by distributing the funds to various DeFi lending and liquidity protocols.
What is the History of Yearn?
Andre Cronje, an independent developer, opened Yearn.finance in 2020.
Cronje secured no support for the yearn.finance protocol and did not reserve any tokens prior to the start of yearn.finance.
This distinguishes yearn.finance from other DeFi ventures, which usually collect funds from venture capital firms before assembling a team to build the protocol.
The yearn.finance network unveiled its native cryptocurrency, YFI, in July 2020.
How Do You Hold the YFI token?
YFI is an ERC20 token. You can hold it on any common Ethereum wallet, such as Metamask or MyEtherWallet.