Yearn.Finance is a DeFi project that made a real splash on the crypto market and at some point was trading more expensive than Bitcoin. In this article, we will briefly describe this project, find out the reasons for trading YFI, and also analyze the best platforms for trading, exchanging, and fiat purchases.
What is Yearn.Finance (YFI)?
Yearn.Finance (YFI) – is a yield aggregator in the DeFi ecosystem, running on the Ethereum blockchain. It is closely connected with projects that pay remuneration for investments in cryptocurrency – Aave, Compound, DyDx, and others. The platform uses the most optimal profitability farming strategy at any given time to maximize profits.
The protocol automatically moves funds between several liquidity pools, depending on where the interest rate is higher. When a user locks their assets in the protocol, they receive yTokens. For example, in exchange for DAI, Yearn.Finance issues yDAI. The exchange rate of these tokens takes into account the profit from the supply of liquidity. When returning yTokens, the protocol issues not only the blocked amount, but also the profitability percentages accumulated during this time. The Yearn.Finance platform works with cryptocurrencies of the ERC20 standard. This is Ethereum itself, as well as a number of other digital coins, including stablecoins: USDT, BUSD, USDC, DAI, and others.
Why should I trade YFI?
Remember that cryptocurrency trading is a very risky activity, and given that the project is still in beta testing, it is difficult to accurately predict its future. In favor of YFI trade, the following reasons can be distinguished:
- The Yearn.Finance project has been enjoying great interest since its launch. Since the launch, the price has increased by more than 5000%. And at some point, it even traded more expensive than Bitcoin.
- Now DeFi has funds equivalent to billions of dollars. A significant part of them passes through the Yearn.Finance platform. The user base of the platform is likely to continue growing, which will ensure an increase in the price. In addition, do not forget about the extremely limited emission.
As of August 31, 2021, the price is approximately $37,046, with a market capitalization of $1,357,008,066. The minimum price is $739.44 on July 21, 2020. The maximum price of $93,435.53 was on May 12, 2021.
Where to trade YFI?
YFI is a freely-traded coin that you can buy or sell on the following platforms:
- Binance – the most popular exchange with access to spot, futures, and margin trading. Some of the most competitive fees.
Daily withdrawal limit without KYC: 0.06 BTC
- FTX – a crypto exchange for professionals, spot and derivative trading with a leverage of up to 110x are available.
Daily withdrawal limit without KYC: 0 BTC
- 7b – a crypto broker for spot trading of more than 350 cryptocurrencies and 2000 trading pairs. High security and convenience.
Daily withdrawal limit without KYC: 2 BTC
How to trade YFI using the 7b crypto broker app?
7b provides the best user experience for both novice and experienced traders. Transparent fees, handy financial instruments, convenience and ease of use, and a huge selection of trading pairs make 7b the best place to trade YFI. Just follow the simple instructions:
- Download the 7b app from Google Play and create an account.
- Deposit funds for further purchase or sale.
- Select a trading pair.
- Enter the amount.
- Confirm the transaction.
Where to exchange Yearn.Finance?
Given the popularity of YFI, most exchange platforms have already included it in the list of available cryptocurrencies for exchange. A brief description of the pros and cons of the types of services will help you choose the platform that is suitable for you:
|Safety||No fixed rate|
|Rare coins to exchange with|
|Fixed rate option|
Based on the rating of the SwapZone exchange aggregator, the following platforms are the best for YFI exchange:
- SimpleSwap – the best exchanger in terms of ease of use, provides the ability to exchange more than 300 cryptocurrencies.
Fee: included in the rate.
- StealthEX – an exchanger that is characterized by increased privacy of the operations performed. More than 350 cryptocurrencies.
Fee: included in the rate.
- ChangeNOW – an exchanger is characterized by a fast exchange rate, provides more than 170 cryptocurrencies.
Fee: included in the rate.
What to know before exchanging YFI?
Cryptocurrency exchange is one of the easiest ways to diversify your investment portfolio. In order to do it profitably and with a minimum of risks, we advise you to:
- Check which exchangers are the best for the exchange pair you need. Use the SwapZone service, which ranks exchangers by exchange rate, transaction processing speed, as well as users’ reviews.
- Be very careful when entering the recipient’s wallet address. Do you remember that operations in the blockchain are irreversible?
How to buy YFI for fiat?
YFI purchase for fiat is currently available on the well-known Kraken crypto exchange. In order to make a purchase, the user have to:
- Have a verified account on the exchange.
- Deposit a fiat currency.
- Choose YFI for purchase.
In addition, you can exchange your national currency for YFI via the instant exchanger Changelly, which supports the fiat gateway. However, it is worth noting that currently, fiat/crypto trading pairs for YFI are limited, and the list does not include USD or EURO. You can see the full list of supported pairs bellow:
YFI use cases
YFI is the internal currency of the platform, with a limited issue of 30,000. YFI has three key functions:
- Governance: owning YFI, you can vote for suggestions for improving the Yearn protocol.
- Cryptocurrency: YFI is a valuable, high-risk, speculative asset. It is liquid and can be traded on large exchanges and brokers.
- Reward: When you stake YFI, you earn a percentage of the fees that the protocol charges for using Yearn.Finance financial products.
Is YFI a good investment?
Yes, the Yearn.Finance project has already shown incredible growth, at some point, the price soared to an unprecedented $90,000 per coin. Many analysts predict a further increase in the price. Given the interest from users, the usefulness of the platform, as well as the limited issue of coins, adding YFI to your investment portfolio is an extremely profitable idea.
How do I invest in YFI?
When investing in YFI, remember that this is an extremely risky asset, which can, however, bring huge profits. Do not forget about the diversification of your crypto portfolio. To purchase on 7b: create an account, easily top up the balance, select a cryptocurrency pair, fill out a market order, and confirm the transaction.
How to trade Yearn.finance for beginners?
It is important for a novice trader to independently analyze the project and its prospects. Look at the daily trading volume, capitalization, partners, study the road map, and whether the developers adhere to it. Trading on 7b is extremely easy: log in to your account, deposit funds for trading, select a cryptocurrency pair, set the transaction details.
What is YFI Blockchain?
Yearn.Finance is a platform built on the basis of Ethereum blockchain, and designed to work with protocols within the framework of the decentralized finance system (DeFi). It automatically redistributes funds between the liquidity pools of the Aave, DyDx, and Compound protocols in order to obtain maximum profitability.