Yearn Finance (YFI) has taken the DeFi industry by storm. Luckily for investors, they now have a chance to own YFI in their iTrustCapital Crypto IRA.
The search for sustainable yield or interest on your assets is one of the prime pursuits of decentralized finance (DeFi) users. Unfortunately, it’s difficult to find reliable yield farms and continuously rotate your assets, for the best yield.
That’s where yield aggregators come in, sourcing in yield from multiple sources. Enter Yearn Finance. Simply put, Yearn Finance automates the yield searching and farming process, so all users have to do is deposit their assets and watch them grow over time. It utilizes composability and synergy between DeFi legos through it’s complex smart contracts for this purpose.
Arguably, being a DeFi primitive or building block, it has significant network effects and is a cutting edge project in the crypto-space. Yearn Finance is primarily based on Ethereum, but has plans to duplicate itself to other smart contract blockchain systems, if they develop a sustainable yield market.
The Total Value Locked (TVL) continuous to grow, which shows that users value the protocol and continue to make deposits into it in order to generate yield on their assets.
Value Locked in Yearn Finance
[caption id="attachment_22638" align="alignnone" width="1145"] Source: www.TheBlockCrypto.com[/caption]
Launched in July 2020, Yearn Finance's genesis story is unique. There was no presale, no fundraising and no team allocation. The token YFI was launched as a fair mine token, which anybody could farm by depositing assets and providing liquidity. It is considered to be one of the most decentralized projects in existence and has wider token distribution than most other projects.
The team behind Yearn Finance believes in collaboration and has quietly built an entire DeFi ecosystem behind the project. This includes Sushiswap for decentralized exchange, Cream Finance for multiple DeFi services (lending, derivatives, payments, exchanges, market making and asset tokenization), Akropolis (for yield generation), Pickle Finance (stablecoin peg stabilizer) etc.
All of these projects and their teams collaborate with Yearn Finance to maximize potential and create synergies. Yearn Finance has a highly talented team led by developer Andre Cronje - a software developer from South Africa. Other notable developers include the anonymous Banteg and Fubuloubu.
First introduced as a valueless governance token, YFI has shown a growth of 100X over its life cycle. YFI is the native token for the Yearn Finance protocol, which is currently used for governance purposes; voting on proposed changes to the protocol. It’s total supply is capped at 36,000 tokens and nearly all of it is in circulation.
Yearn Finance has billions of dollars in assets under management (AUM) and the profits generated from the protocol will eventually be used for cash flows and dividends to the token holders. Currently profits are being used to buy back YFI from the open market, which creates positive buy pressure and helps align protocol incentives.
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