We also have other cryptocurrencies that were created to serve the purpose of being a medium of exchanges. Since their values are stable and not subject to the volatility of the cryptocurrency market, stablecoins could be regarded as money. For instance, the value of 1 USDT is the same as 1 US Dollar. This is because the value of stablecoins is tied to fiat currencies in a ratio of 1:1. If there are discussions about cryptocurrencies that could serve as real money, then stablecoins could probably take the lead. It can also be regarded as an investment coin since the holders can earn profits by staking it or lending it to others within the yearn.finance platform. The token holders get to decide on changes within the protocol. The YFI token is used for governance within the yearn.finance DeFi ecosystem. The YFI token cannot be described as "real money". This is a data table that indicates the interest rates across a wide range of lending protocols in the DeFi space.Īccording to yearn.finance’s rules, the amount of the YFI token a holder earns is usually determined by the amount of the coins locked in a smart contract operating on the Balancer and Curve DeFi trading platforms. The insurance coverage applies to various smart contracts and protocols on the Ethereum network.Īnother popular product on the yearn.finance platform is APY. This is an insurance product on yearn.finance that allows people to gain coverage in case of financial losses. The Zap product basically bundles several trades in a single click, saving users cost and labour. This can be done using stablecoins like the USDT, USDC, DAI, BUSD and TUSD. The Zap product allows yearn.finance holders to swap in and out of liquidity pools on the CurveDAO platform. Basically, Earn is the yearn.finance product that allows users to identify the highest interest rates they can earn when lending their assets. This is to ensure that users can take maximum advantage of the rates at all times. The shifting is done automatically as the interest rates change among these protocols. The funds here are moved between other DeFi protocols such as dYdX, AAVE and Compound. Earn is the lending aggregator on yearn.finance. This was the first product launched by yearn.finance. Basically, the Vaults is a collection of investment strategies carefully developed to generate the highest returns from a wide range of DeFi projects. The users get to enjoy the benefits of vaults thanks to processes such as crowdsourcing gas costs, automatically shifting capital according to the needs and automating the yield generation and rebalancing procedure. The vaults are staking pools on the yearn.finance platform that generate returns for investors based on the opportunities available in the market. It has four major products that are described below. Yearn.finance is one of the leading DeFi platforms in the world. How Does yearn.finance Work and What Technology is Behind It? Bitcoin is one of the few coins that has a higher trading price than YFI at the moment. Each YFI token is currently trading above $24,345. ![]() The scarcity of the YFI token is one of the reasons why its price is so high. However, the community has said that more YFI tokens could be minted by changes if agreed by the governance board. At the moment, the total supply of YFI tokens is 36,666 and all of them have been issued. ![]() YFI is the governance token of the DeFi platform. The YFI token is the native coin of the Yearn.Finance platform. The primary goal of yearn.finance is to have products that create a simple and intuitive interface for the entire DeFi space. As a DeFi platform, yearn.finance provides financial services to people but has eliminated the need for intermediaries such as banks and other financial institutions. Yearn.finance, like several other DeFi protocols, realised the flaws of the traditional financial system and sought to eliminate them. It is a suite of DeFi protocols that allow holders to optimise their cryptocurrency earnings via lending and trading services. Yearn.finance is a leading DeFi protocol designed to allow people to earn profits from cryptocurrencies.
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