Buy YFI (Yearn Finance)
How long does it take a person to start earning more than they have time to spend? The cryptocurrency world is an unexplored cache of such opportunities when approached intelligently and thoughtfully. All that remains is to unlock the code from that stash to find out how. So in this article, you will learn how to buy YFI, invest in YFI and what benefits it will give you.
Where to buy YFI?
Suppose you want to buy YFI in India. In that case, we recommend that you study the materials on how to get started with a cryptocurrency exchange and how to trade crypto assets properly.
How do I buy YFI?
One of the essential characteristics of this Defi token is the lack of centralised control over the trading process.
Step 1: Get a Wallet: You will need a cryptocurrency wallet to use the exchange effectively. Choose a wallet that is easy to use and offers robust security features. Then, you can download the app to your device via Google Playstore or iOS.
Step 2: Find Yearn Finance: Once downloaded and installed, open and search for "Yearn Finance".
Step 3: Deposit funds into your wallet: There are several ways to deposit funds into your wallet. We will describe the two most popular methods.
- You can purchase cryptocurrency with a debit/credit card;
- Transfer digital tokens from an external wallet.
Step 4: Connect to the exchange.
Step 5: Buy Yearn finance. The next step is to select the cryptocurrency you want to exchange with Yearn Finance.
Enter the number of tokens you want to buy, and voila!
General information about Yearn Finance
YFI is the Yearn Finance protocol's cryptocurrency. It is a management token that allows users to decide how the protocol will evolve.
Since its launch in July this year, YFI has become one of the most oversized Ethereum-based tokens, as the protocol has focused on automated yield farming strategies. In a sense, Yearn finance is a robot that aims to find the best returns in Ethereum DeFi. Because of these leading advantages, many people are looking to buy Yearn Finance or invest in YFI.
Decentralised Finance (DeFi) has shown parabolic growth as protocol yields have been higher. This growth is mainly due to the introduction of management tokens, which allowed their holders to determine the direction of the protocols. Management tokens were a crucial step in the decentralisation of the DeFi protocols.
Yearn Finance launched YFI in July 2020, a little after the launch of management tokens. This token quickly conquered the cryptocurrency space, rising from USD 3,000 to USD 30,000 in a month.
What is Yearn finance?
If you're considering buying Yearn Finance, it's essential to understand the essence of Yearn finance, also known as yEarn.
Yearn finance was launched by Andre Cronje in early 2020 and was an Ethereum-based protocol that aimed to provide users with maximum returns on Ethereum, stablecoin and altcoin deposits.
Andre Cronje is a South African financial technology IT developer who decided to create Yearn Finance after finding inconsistencies in the returns of various DeFi applications.
Shortly after launching, Cronje's protocol was hacked and redesigned to provide users with a new set of products.
Yearn finance was a fair niche project until July 2020. However, after the hack at the beginning of the year and the cryptocurrency market crash in March, many users were hesitant to use the new protocol or invest in YFI.
That all changed when Cronje published a blog post on Medium announcing the launch of YFI, an ERC-20 token with which users could manage the Yearn finance protocol themselves.
YFI can be created in some ways by providing liquidity to a Balancer pool or a decentralised exchange and depositing capital into Yearn finance products.
Although Medium mentioned that YFI "has no intrinsic value", the market has continued distributing the coins. The cryptocurrency surged after starting trading at $3 in the Balancer pool: investors saw value in Yearn finance's management, which began attracting tens of millions of deposits.
Shortly after launch, the community stopped at a maximum stock of 30,000 coins, deciding to keep the YFI deficit instead of allowing the token stock to grow further. Users unhappy with this decision created a fork of the project known as DFI.money or YFII.
What is the significance of YFI
While many people only pay attention to the cost of YFI, much more important is the shift in the perception of how protocols can drive technology diffusion. The launch of YFI was considered "the fairest launch since bitcoin", as anyone could engage in coin creation for the same price.
Instead of using the Initial Coin Offering (ICO) model, where you have to pay a specific price for each new coin, YFI users were allowed to participate in the protocol's governance. Thanks to the management token, this mechanism significantly boosted the project's community, as each user had equal influence over Yearn Finance.
Even after the initial price volatility, Yearn finance has developed one of the most active communities in decentralised finance and cryptocurrencies in general.
Yearn Finance ecosystem
If there is a desire to invest in YFI in India, you will be happy to know that apart from the main yearn finance application, the ecosystem also includes protocols.
1. yinsure.finance is a protocol for insurance that works in conjunction with another protocol for insurance, Nexus Mutual. However, unlike Nexus Mutual, yinsure does not require KYC verification.
This protocol consists of two repositories and a management platform. The first vault contains the funds from which insurance will be paid and only supports USDC stablecoins. Users lock USDC in it and receive yiUSDC in exchange. yiTokens of the yinsure.finance protocol is the yTokens analogue of the yearn finance protocol. The protocol pays introductory and weekly premiums to insurance providers at the expense of those who insure their assets.
The second repository contains the funds that users insure. You can choose from a list of protocols in whose smart contract you have funds. By November 2020, the vault supports 11 protocols, including Uniswap, Compound and Synthetix. In addition, Stablecoins DAI and cryptocurrency ETH can be insured.
For example, you lock in yinsure DAI for the amount you want to insure and receive yiDAI in exchange. The entry fee is 0.1%, and the weekly insurance premium is also 0.1%. If unforeseen circumstances happen to the selected protocol, such as hacking or a code bug, insurer will pay you the insured amount.
You can terminate the insurance at any time - to do this, you need to return the yiDAI.
The management platform yinsure.finance holds votes for the provision of insurance. You need yiUSDC tokens to participate. The voting process takes place over a period of 3 days. The insurance needs 33% of the votes to be approved. If 25% of all yiUSDC holders veto the insurance, the protocol will not support it.
2. ygov.finance is Yearn's ecosystem management platform. It can be used to vote for changes to the ecosystem.
Some of Yearn's ecosystem products are in the testing phase. The smart contracts of these protocols have not yet been audited. However, the code is being tested, so developers warn against using these products before release. During testing, the protocols are suitable for evaluation purposes only. Projects that are in the testing phase:
3. yBorrow is a protocol by which loans can be given and taken out. These loans are secured by collateral. Unlike peers, in yBorrow the collateral can be less than 100% of the loan amount. This feature is possible due to the use of the storage system and the Aave project's liquidity pool as the basis for the protocol.
4. ySwap is a decentralised exchange. Its peculiarity is that users can provide liquidity using only one token. On most similar exchanges, such as Uniswap, liquidity can only be supplied by a pair of two coins.
5. yTrade is a decentralised exchange for trading with up to 1000x leverage. To get leverage, you need to provide collateral in one of the four stablecoins: DAI of MakerDAO project, USDC of Centre consortium, USDT of Tether, BUSD of Binance.
6. yLiquidate is a protocol that interacts with the Flash Loans technology of the Aave project. With the help of this technology, it is possible to borrow without collateral. To do so, you need to write a smart contract that will request a loan in one Ethereum transaction, act on that loan, and return the funds. If there is no repayment with interest, the technology will not execute the smart contract.
The launch of YFI marked the birth of a new principle of coin allocation in cryptocurrency projects. And it has touched the entire industry.
By encouraging first-time users, projects can expect faster adoption and community expansion. In addition, this approach is linked to the concept of "risking your skin", which suggests that people interested in investing monetarily or emotionally will do whatever it takes to make the project a success.
Yearn finance is an exciting protocol that creates unique decentralised financial products. With a team of experienced developers and marketers, Yearn finance holds great promise, but only time will tell if this project will thrive and grow in the Ethereum DeFi space.
To summarise the above, there is only one thing to say: this world belongs to enthusiasts. So work hard, learn, develop and earn!