Buy YFI (Yearn Finance)
Yearn Finance is a decentralised finance (Defi) project that allows users to maximise their profit from growing crops. André Cronje founded the protocol in February 2020. It is the first coin worth more than bitcoin per unit - with the digital currency since hitting a high of over $88,000.
Do you want to invest in YFI or buy Yearn Finance and don't know where to start? If so, we have put together a guide that we hope will answer your questions.
Where to buy YFI cryptocurrency
The YFI token is traded on the most popular cryptocurrency exchanges. These include Binance, OKEx, and Huobi Global. If you plan to buy YFI in Kenya, we advise you to pay attention to these platforms.
1. Binance: is a popular exchange where residents of almost all countries can buy Yearn Finance tokens.
2. OKEx: you can also easily buy Yearn Finance on OKEx.
3. Huobi: if you want to buy YFI token, Kraken is one of the best and affordable options.
Yearn Finance scheme of operation and ways to invest in YFI
How does Yearn Finance enable users to invest in YFI in Kenya? Yearn Finance transfers users' money to successful project accounts, works with protocols and provides the most profitable option - APR. "The main trick is DeFi, which provides the highest possible yield with stablecoins.
The Yearn Finance lending platform provides protocols with many different types of Stablecoins: USDC, TUSD, DAI and SUSD. In addition, users of the system get the opportunity to produce on yToken profitably. This YFI coin is no different from any ERC-20 token on the technical side.
Of the apparent advantages, it is worth noting that when you deposit stablecoins into the protocol, the Yearn Finance platform transfers the tokens to the one that brings the maximum yield and automatically provides the opportunity to maximise income.
This token is clearly number one when it comes to flexibility or automation. The system charges a minimum amount for services deposited into the pool and then distributes the cash to YFI token holders.
While many cryptocurrency communities have called the project high-risk and even experimental, its native token has seen a dizzying rise in value. While the first trades on Balancer were held at $3/coin, a week after it was added to DEX Uniswap, its price had already risen to $4500+. After the inevitable correction, a new wave of growth awaited it: it could outperform even Bitcoin, setting a record in the crypto industry.
CoinMarketCap estimated its return on investment at 1,905.43%. CoinMarketCap suggests that long-term investments are promising.
The fundamental differences between YearnFinance and other cryptocurrencies
YearnFinance's operating scheme is almost no different from other cryptocurrency platforms. Its users can work with any type of ERC20 and receive an equivalent amount of yTokens, because there is almost no difference between them. Moreover, the main stablecoin has all the necessary tools for lending.
It's worth noting that Yearn Finance's platform automatically makes the user's income as high as possible. Reggertably, this network is only available to users who work with YFI tokens.
The ecosystem of Yearn Finance has a critically high level of stability, as its creator Cronje sees the two main objectives of the platform - the symbiosis of finance and maximum stability. The company's primary goal is to operate the platform as efficiently as possible for high earnings for all system users and YFI coin holders.
According to André Cronje, the system he created has earned him good financial resources since day one. In addition, all other players in the system have also been able to work with tokens financially if they invest or buy YFI.
Yearn Finance tools
You need to learn many Yearn Finance features to understand what you get out of using this protocol.
As stated, YFI aims to find the most increased or best interest rates for assets lent to the protocol. Thus, individuals can manually deposit funds such as USDT, sUSD, USDC, DAI etc.
The network works with stable coins such as Tether (USDT) and True USD (TUSD). Yearn's job is to determine which platforms (DyDx, Aave or Compound) offer the best rates in terms of returns. Then provide Stablecoin to that platform.
Some of the main features of the protocol include:
Many DeFi enthusiasts love that they can exchange cryptocurrencies without any hassle. With this feature, Yearn Finance creates a platform where users can deposit their funds as well as exchange them from one protocol to another.
This feature tokenises users' debt in another DeFi protocol via Aave. Once the debt is tokenised, the user can utilise it in other protocols, creating a new liquidity stream.
This feature is analogous to savings accounts for cryptocurrencies, which generate passive revenue for users. Deposits are made into them and then channeled through strategies to DeFi-protocols to develop the highest possible returns with minimal risk. As a result, not only stablecoins can be deposited, but also other coins. The benefit of yVaults is lower fees on the Ethereum network.
An updated v2 version has also been released. You can find details in the table below.
|Up to 20 strategies per Vault||Increases the flexibility of asset management for different market fluctuations. Each strategy has set a capital limit so that funds are not concentrated in 1 that has reached the maximum return.|
|Controllers replaced with Strategist and Keeper||The new members are responsible for implementing the strategies. They can take action to manage capital better or to get out of critical situations.|
|Vault management process has been automated||Keep3r bots have been implemented to buy new collateral through the sale of mined coins. They return the profits to Vault and then use them in strategies. The transactions are charged in keep3r tokens.|
|Withdrawal fee waived||This one-time fee was installed in version v1.|
Distinguishing features of Yearn Finance
Yearn Finance (YFI) is a native cryptocurrency of aggregator DeFi. Features of the project and its coin:
- YFI is an ERC-20 standard management token. The developers use the Ethereum network and have no plans to launch their blockchain in 2021.
- Initially, the coin had no value, but it became the first cryptocurrency to overtake BTC. In May 2021, the currency was trading at $82,000. By comparison, Bitcoin's record price is $68,789.
- The main product of the protocol is the DeFi aggregator. Thanks to the aggregator, investors can farm for maximum profit.
- Decentralisation has been established in the project. Holders can create proposals, vote for or against them. (1 coin = 1 vote).
- The whole DeFi sector is associated with the name of the creator. Cronje also created yCredit (a platform where you can deposit ERC-20 coins and receive credit in return, denominated in yCredit cryptocurrencies at 99.5% of the deposit), a non-investment grade LBI meme-token.
How to reduce risk when investing?
Always consider the risks if you decide to invest in cryptocurrency and make money from the price difference.
Firstly, analyse the state of the crypto market.
Every currency has periods of decline and growth. So the principle of making money from crypto is speculative: buy cheaper when the price falls and sell higher when it rises.
The next step is to examine the risks involved.
The financial market is like a living organism. It is subject to price fluctuations in both positive and negative directions. The high volatility of cryptocurrencies allows you to make a lot of money quickly and speculatively by buying and selling them. But there is no guarantee of breakeven and minimal returns.
Next, choose the currency in which you plan to invest.
To summarise the risk factors, there are two main groups: the volatility of cryptocurrencies and security issues. If you plan to buy Yearn Finance, you don't have to worry about security.
Research the cryptocurrency you want to buy. Then, subscribe to the developers' official resources. Unfortunately, you may have to spend far more than an hour to decide which cryptocurrency to invest in.
It is up to everyone to decide how much to invest and which currency. But for beginners, we advise you to invest only money that you are prepared to lose if you fail. And, of course, you should constantly monitor crypto news.
Study the news of world politics.
For example, you could see an increase in demand for digital gold following the news of a Brexit victory for supporters.
At the same time, it should not be forgotten that some news is created with the intention of purposefully influencing cryptocurrency rates.
Crypto investors must have a balanced and critical attitude to the news. Priority should be given to time-tested, reputable publications that provide a link to the primary source (official blog post, press release, etc.).
What conclusion can be drawn?
The risks posed by cryptocurrency volatility are something to be friends with. By carefully monitoring and analysing all small price movements, experienced traders have learned how to capitalise on them by buying and selling coins at the right time of day. Such flair comes with practice, but knowledge-study trading tools also back it. They help you not only stay in deficit but also make profits. Believe in your strength, and you will succeed!