Yearn.finance Review 2021

Constantly making waves in the open seas of cryptocurrency is a platform that stands undisputed for what it offers to the customers. Yearn.finance is one of the most popular cryptocurrency lending protocols. Operating to integrate cryptocurrency-based finances into the lives of daily users, Yearn.finance offers various services for individuals who wish to take part in DeFi (decentralized finances).

DeFi protocols have already taken over most of the significant market. Still, Yearn.finance provides one of the highest returns on crypto investments and enables the users with numerous functionalities and features. The cryptocurrency finance ecosystem has rarely witnessed a protocol that is as diverse as the decentralized finance protocol of Yearn. 

Quick Overview of Yearn.finance

  • Yearn.finance is one of the leading lending protocols in the domain of DeFi.
  • The annual percentage yields of the platform are also some of the highest across the industry.
  • Yearn.finance protocol didn’t offer YFI tokens upon its initial release, which inspires even greater belief in the complete decentralization of the platform.
  • The list of services offered by Yearn.finance includes vaults, flash loans, and lending, etc.
  • Other features like Zap provide users with a way to prevent additional costs like gas fees.
  • Various exchanges across the world support the protocol.

What Is Yearn.finance?

Yearn.finance is a DeFi protocol that offers some of the highest annual percentage yields compared to various DeFi protocols. The protocol allows the users to deposit money directly into the liquidity pools and earn interests. The service of the vault (crypto-based software wallet) comes with a 2% yearly fee for maintenance.

Yearn.finance can be considered a platform with impeccable security standards, and the governance lies with only YFI holders, making it a self-governed platform. This implies that the finance community that uses the protocol will monitor it (where one token has one vote). Yearn.finance also offers easy and streamlined ways to liquidate funds.

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How Does Yearn.finance Work?

The protocol stands as a medium among the lenders and borrowers while providing other services like vaults (software wallets). Yearn.finance multiple platforms and exchanges support finance, and users can opt for the compatible platforms based on their regions. Yearn.finance charges a small fee for various services and features that it brings to the table.

Yearn.finance is a community governed environment similar to the events that occurred this year; if the YFI token holders agree, then the token supply can be inflated. This can be considered a sign to pay attention to the valuable token that YFI is. 

History of Yearn.finance

When it was initially launched, Yearn. A different name referred to finance. It used to be known as iEarn in its very first days. After being compromised, it was rebranded, and one of the most decentralized projects was now operating under new leadership. Since then, the security measures were taken to new heights and made it a platform that might be regarded as the safest DeFi protocol by some individuals.

Introduction of its own YFI token gave, now Yearn.finance, the boost that it needed at the time. Succeedingly, the launch of vaults enabled the platform to raise a high amount of funding. Most of the DeFi lending protocols (decentralized finance protocols) do not survive such journeys, but Yearn.finance is unique in its ways. 

Features of Yearn.finance

Several features set Yearn.finance apart from its competitors and serve as an incentive for the users. The protocol offers liquidate.finance, trade.finance, iborrow.finance and yswap.exchange. As the names suggest, these are the corresponding service names for liquidating the assets, trade or swap cryptocurrencies, or borrow finances. 

The decision-making process gets easier when one looks at the offerings of other protocols and the ratio of profits that Yearn.finance is reputed for. The APY (or also known as annual percentage yields) is some of the highest in the industry because most other financial instruments or DeFi platforms are not decentralized to the extent that this protocol is. 

Yearn.finance Review: Pros and Cons

Pros Cons
Offers some of the highest returns on investments.  The protocol has reached its peak number of tokens, and thus, no more supply can be generated. 
Yearn.finance maintains a high level of security. Yearn.finance’s platforms face fierce competition, and the handful of limitations might prove to be a dealbreaker for some users. 
Its net value that is locked has surpassed $5 Billion. finance alternatives to Yearn.finance are offering tokens that are scarce and can be minted. 

Services Offered by Yearn.finance

Crypto investments, flash loans, swapping of digital assets constitute the services offered by the platform. Through YFI tokens, users can take part in votes and govern the protocol and its future. Zap is one of the most intuitive services that Yearn.finance brings to the market. Through Zap, users can “zap” funds in and out of the curve pools, thereby saving on the gas fees that come with transactions.

Registered users can also monitor their dashboards from within the platform and supervise their assets’ values. Earning cryptocurrency is also an easy task through the platform. By becoming a part of the liquidity pool, the assets become eligible to get returns based on the demand/supply in the market. 

How to Use Yearn.finance?

The users who want to use Yearn.finance must connect their respective wallets/exchange platforms with Yearn.finance’s protocol. Individuals should take note of the crypto lending platforms that are supported by and are compatible with the DeFi protocol. The list of supported wallets includes Coinbase Wallet, MetaMask, Ether. However, keep in mind that the list of available wallets will change based on the geographic region.

Yearn.finance Reviews - Yearn.finance VaultsYearn.finance Reviews – Yearn.finance Vaults

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When it comes to using the vault, the steps include entering the platform, selecting the option to invest, and choosing from the list of vaults that are displayed. Each vault comes with some unique functionalities, and individuals can choose based on their needs. While it comes to buying Yearn.finance, users from a few select nations can also get rewards in cash backs that refund 10% of the trading fee charged from the users.

YFI Token Details

An ERC-20 serves as the heart of the YFI token that is the primary token of the platform. At the time of launch, there were no pre-supplied tokens from the protocol, and thus, all had to be mined. YFI tokens can be earned by offering assets to Yearn.finance.

YFI tokens are also the governance tokens of the Yearn.finance protocol. There have been rumors of releasing a second iteration of the token because the current limit of the maximum number of tokens has been reached (which is 30,000). And As the value of the token fluctuates, the protocol’s scalability also gets affected.

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Yearn.finance Governance

The YFI token is the governance token of the protocol, and the users who hold YFI tokens are also authorized to vote. Each token carries one vote, and thus, the more votes one user has, the more would be their weightage.

At the very least, 33% of the users have to agree when it comes to significant changes or new proposals for the Yearn.finance’s ecosystem, although if 25% of the users stand against it, it can be vetoed as well. And over half of the token holders would have to agree for a proposal to be passed. 

Yearn.finance Earn Product

The Earn product offered by Yearn.finance is said to swap profits for the users who lend assets to the protocol, which are then borrowed. This product automatically moves user funds through the Aave, Compound, etc. It further aims to find the highest or best interest rates for the lent assets to the protocol. The individuals can manually deposit funds such as USDT, sUSD, USDC, DAI, etc.

The interest rates for each asset may vary, and yield generation would result from that phenomenon. Based on the Ethereum blockchain, Earn is a genuinely one-of-its-kind tool that can aggregate the data across all marketplaces and deliver the most returns. 

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How to Choose Your Wallet at Yearn.finance Wallet?

Yearn.finance supports numerous reputable software wallets that are based on or keep the tokens of the Ethereum blockchain. A few examples of such wallets are MetaMask, Ledger, Fortmatic, Torus, Opera. The DeFi market provides many wallets that users can go with, provided the protocol supports them.

Once the wallet has been registered, it can then be used to trade or use any of finance yearn services. Users can use the wallets through their browsers, apps, or hardware wallets, depending on their scenario. Since these wallets would be based on the ETH blockchain, it can also be a place to store the finance token of the platform.

Yearn.finance Reviews - Choose Your Wallet at Yearn.finance?Yearn.finance Reviews – Choose Your Wallet at Yearn.finance?

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Why Is YFI Important?

YFI is the underlying token of the Yearn.finance protocol and thus can be used for various purposes on the platform. In addition to being a digital asset, YFI is also the governance token of the platform. Each token equates to an equal value of vote on the platform. 

Furthermore, the platform’s value is ever-growing (which results from multiple revenue streams), so the token would only increase the users’ profits as the platform continues to grow. The individuals who seek to invest in YFI can earn the yield optimized tokens by offering assets to the protocol and get tokens in return, albeit new tokens are not being minted because the limit has been reached. 

Yearn.finance Future

Unlike other DeFi platforms, Yearn.finance has solidified its presence in the DeFi sector and can be considered one of the more reputed players in the game. With rumors of the launch of a new token and the brand reputation, Yearn.finance appears to have its best days ahead of it as the users start to take advantage of the features and functionalities that it provides the users with. Investing in Yearn.finance has the potential to turn out to be a great opportunity if the platform continues to rise. 

Yearn.finance Customer Service

To reach the team behind the protocol, users can get in touch with the help of various social media channels of the brand that are shared on the website. Telegram is one of the more popular methods to contact the community or other YFI token holders. This might also be one of the quickest ways since few members are generally always online to provide all the assistance, although this wouldn’t include investment advice of any kind.

Yearn.finance Review: Conclusion

For the users who focus their trades on Ethereum blockchain and are looking to either borrow or lend digital assets, Yearn.finance offers a palette of unique features and can provide unparalleled returns on investments. Some features such as Zap are not observed in the entire market and can prove to be a powerful tool for advanced traders who are looking to save a few bucks on trading fees. More details here.

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FAQs

Is Yearn.finance Safe?

Yearn.finance is known to have some of the best safety measures on its platform, and although it has been exploited in the past, the protocol now is highly regarded by the experts in terms of safety. And the users who prefer hard or cold storage wallets, the risks are negligible if they store their assets offline.

How Do You Make Money With Yearn.finance?

To make money with Yearn.finance protocol, users need to connect their respective Ethereum wallets compatible with the platform. Once the wallet is connected, the users have to deposit assets (by selecting invest option through the platform), becoming part of the lending pool and return interests.

What Was the Starting Price of Yearn.finance?

The price of the YFI token varies depending on the market and other DeFi coins. However, the users can invest in tokens for a fraction of their total amount, similar to other assets. The price charged by the protocol for vault service is 2% per annum.

Is Yearn.finance Legit?

Yearn.finance serves a large user base, offers good security, and has gained respect for the mix of features that it has become. The past and present both stand to make Yearn.finance appear to be a legit and trustable platform known to be industry leaders.

What Happened to Yearn.finance?

Yearn.finance has managed to become one of the most popular protocols in the world of decentralized finances. The news of the launch of a new token made Yearn.finance come to the spotlight again as the protocol users worldwide await to see the direction in which the platform steers.

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