yearn.finance (YFI) Research

yearn.finance (YFI) Research Details

yearn.finance (YFI) yearn.finance

INTRODUCTION

Yearn.finance is a group of Ethereum blockchain-based protocols that allow users to grow their money in crypto assets through loans and trading services.

One of the many emerging financial financing projects (DeFi) yearn.finance provides its services using code only, eliminating the need for a financial consultant as a bank or caregiver. To do this, it built an automated compensation system around its YFI cryptocurrency.


HISTORY AND FOUNDER

Yearn.finance, which was previously known as iEarn was founded by Andre Cronje and was released in 2020. Cronje became a promoter in the DeFi space and earned recognition for his code review before launching iEarn. It was his passion for splitting the codes of other forums that helped him complete his own. During his testing phase, he made sure that DeFi was too complicated for the average user. He then decided to focus on two aspects of his project to help fix the issue - user information and security.

REASON TO BUILD THE PROJECT

The reason behind building this project was that many DeFi protocols were too complex for a non-expert to understand and use. Therefore, Cronje decided to build a platform for DeFi enthusiasts to use without complaints.

It may have started small, but it noted a record amount of $ 1 billion at a time. According to Cronje plans, Yearn. Finance will be the safest protocol everyone can trust.


BASE OF PROJECT

Yearn.finance is a protocol designed to send contracts to the Ethereum blockchain and other fixed trades that operate on it, such as Balancer and Curve.

In this way, users hope that YFI contracts, as well as those related to Balancer and Curve, will work for Ethereum to provide the advertised services. Most yearn.finance services - Earn, Zap, and APY - want to enable users to borrow or trade their cryptocurrency.

·       Earn is a way for users to get the best interest rate loan, and it works by searching different lending agreements, such as Aave or Compound, to get the best rates. Users can enter their DAI, USDC, USDT, TUSD, or sUSD in the yearn.finance field to get those interest rates.

·       Similarly, Zap allows users to complete multiple investments with a single click. This saves the user time, opportunity costs, and service charges.

·       APY searches for all loan agreements used by Earn and gives the user an estimate of how much interest they can expect to earn, on an annual basis, for a certain amount of money.


USE CASES

The use cases of YFI are:

·       YFI owners are entitled to a portion of the protocol benefit. These benefits are kept in the Yearn Treasury Vault, once a maximum of $ 500,000 has been collected and all other benefits are given to participants.

·       YFI owners have the right to vote on various proposals and user rules.

·       It facilitates access to productive agriculture and mining strategies in a growing and economically viable community for shared financing projects.

MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

21/12/2021

New Tokenomics pushes Yearn Finance up.

+85% Increase

11/05/2021

Yearn.Finance launches Woofy Token, reaches $4 bn TVL.  

+56% Increase

 

05/09/2020

Uma overtakes Yearn.Finance and becomes the biggest DeFi protocol on Ethereum. 

-31% Decrease


CONCLUSION

Yearn has developed a solid business model and has been a heavy hitter in the DeFi area in very little time. There is no doubt that Yearn Finance remains one of the best DeFi contracts in Ethereum simply because of the variety of services and tools it offers.

Yearn's internal value is in the Treasury - these savings are currently being used to purchase YFI tokens in the open (most appropriate) market and may be used to pay shares of $ YFI token holders' shares as in the past. Easy use and one-click solutions have become a trademark of Yearn and we can expect the same in the years to come.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.