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Amidst the current bearish tendencies of the cryptocurrency space, investors and crypto enthusiasts are looking to farm yields on protocols like Yearn Finance for solace.
Yearn Finance $YFI is an ETH-based DeFi aggregator protocol providing its users with all things DeFi. The protocol provides its users with the best possible yields by simply moving their funds across several DeFi lending protocols. Some of these lending protocols include Aave, dYdX, Curve, Compound, etc.
Founded in 2020 by popular crypto enthusiast Andre Cronje, Yearn Finance has been touted as one of the most truly decentralized DeFi projects. The native token of the Yearn Finance ecosystem is the $YFI token. In May 2020, the token attained its current all-time high of $90,786.89.
The Yearn Finance ecosystem currently boasts of several products like yVaults, Earn, Iron Bank, and Woofy.
About yVaults
yVaults are quite similar to conventional saving accounts but for crypto assets. LPs on Yearn Finance can easily deposit their crypto assets on yVault. Which in turn searches out the highest possible yield in the DeFi space using a strategy. Interestingly, it is quite easy to deposit crypto assets into yVaults with Zapper. The only requirement needed to Zap in assets is to ensure the token can be swapped on Uniswap with at most 1% slippage.
Zapper also helps in carrying out withdrawals on Yearn Finance. During withdrawal, crypto-assets can be easily swapped back to supported tokens like ETH, DAI, USDT, USDC, etc. yVault also has a 20% performance and a 2% management fee structure.
yVault V2 also recently went live with major strategic improvements. Some of these improvements include:
- The introduction of an estimated 20 strategies for every vault.
- Automatic vault housekeeping (Keep3r network).
- New yVaults Controllers (Strategist and Guardian).
- Lastly, the launch of No Withdrawal Fee.
Yearn Finance Earn
YFI Earn is a core product of the Yearn Finance ecosystem. It functions as a DeFi lending aggregator, providing the highest yield possible for crypto tokens by moving these tokens across top ETH-based lending protocols like Aave, dYdX, Compound, etc. Some of the supported cryptos on YFI Earn include TUSD, DAI, USDC, USDT, etc.
Also, governance on Yearn Finance is carried out by $YFI token holders. Major ecosystem changes need to first be submitted as proposals. These proposals are then voted on by YFI token holders. Notably, only proposal switch majority votes of over 50% will be implemented.
Highest and Lowest APYs on yVaults
According to Yearn Finance, some of its new tokens have the highest APYs on its yVaults.
- Curve cvxCRV, a Curve liquidity pool token, currently has an APY of 40.88%. The pool contains both Curve native token $CRV and its Convex tradable version $veCRV tokens. Token holders earn fees when interested persons trade in the pool. Notably, the pool also has a total asset of $478,332.
- Next is Curve ibGBP with a current APY of 36.25% and a total asset of $20,835,154. The token also represents a Curve Liquidity Pool (LP). The pool is made up of the ibGBP and the sGBP minted from the Iron Bank and Synthetix platforms, respectively. Token holders also earn fees when users trade in the pool.
Some of its lowest APYs can be found in its LINK and ETH pools.
- LINK yVault currently has an APY of 0.11% and a total asset of $5,638,301. The vault supplies LeagueDAO with LINK tokens while earning LEAG in the process.
- ETH yVault has an APY of 1.17% and a total asset of $544,629,603. The pool is made up of wrapped or synthetic ETH assets (WETH). Which are supplied to Curve Finance to earn $CRV tokens.
According to reports, newer tokens on Yield Finance seem to be the best bet in earning huge APYs as compared to more popular tokens like LINK, ETH, UNI, TUSD, etc.
In Conclusion
Yearn Finance ($YFI) has attracted a lot of attention since its inception. A few months after its launch, the token crossed the $40,000 price range. Furthermore, landing the title of being one of the most expensive tokens in the crypto space in such a short period of time. The token also rose to an all-time high of $90,786.89.
YFI Price
At the time of writing, $YFI was trading at $23,897.99, with a market cap of $852,981,981 and a 24-hour trading volume of $130,376,844. The token price is also up by 1.9% in the last 24 hours.