How and Where to Buy Yearn.Finance (YFI)
Andre Cronje, an independent developer, originally founded the iEarn project. In February 2020, Cronje walked away from the project but later returned to rebrand it to Yearn.Finance. The new project went live in July 2020, with the launch of the $YFI token.
Cronje has a background in cryptocurrency, notably DeFi, working with Fantom and CryptoBriefing, a crypto media source and company that focuses on ICOs (initial coin offerings).
Most DeFi projects raise venture capital funds by seeking investment partnerships, but Cronje started the project without external funding and did not reserve tokens for himself.
Yearn.Finance is a fast-growing DeFi project that hit the ground running with almost $800 million of assets on the platform in the first month after launch.
What Is Yearn.Finance (YFI)?
Yearn.Finance is an automated aggregator service that helps maximize yield farming profits for DeFi (decentralized finance) investors.
By simplifying the DeFi experience, Yearn.Finance aims to appeal to a broad field of global traders without technical expertise.
The Yearn.Finance protocols run on the Ethereum blockchain, providing multiple trading and lending services, enabling users to maximize their earnings with automated rewards. Balancer and Curve are two Decentralized exchanges that run on Yearn.Finance.
Yearn.Finance has several products: –
- APY – An interest rate table for various lending protocols
- Earn – The protocol searches multiple lending protocols for the best interest rates for users wanting to lend crypto assets. Users then deposit their chosen crypto on the Yearn.Finance platform and earn the highest returns
- Vaults – A range of high return investment strategies for DeFi projects (similar to managed funds)
- Zap – Several trades can be bundled together with one click, saving time and reducing transaction costs
$YFI is the native token on Yearn.Finance. It’s a governance token, meaning that if you own $YFI tokens, you can vote on project rules and proposals.
Users earn $YFI rewards by utilizing the Yearn.Finance platform to lock their cryptocurrencies into contracts.
What Makes Yearn.Finance (YFI) Unique?
The simplicity of DeFi investment is what makes Yearn.Finance unique. By turning a complex process into a beginner-friendly approach, Yearn.Finance has attracted a sector of investors that would otherwise flounder to understand how to utilize DeFi and yield farming.
Yearn.Finance uses multiple customized tools, acting as the aggregator for decentralized protocols like Aave, Compound and Curve, providing the highest yield for crypto stakers on the platform.
In June 2021, Yearn.Finance launched its newest yVault: crvTricrypto. “This vault is based on Curve’s new tricrypto pool consisting of BTC, ETH, and USDT. Our standard fees apply, 2% management fee and 20% performance fee on profits generated. There are no withdrawal fees.” – Yearn.Finance Official Twitter account
How and Where to Buy Yearn.Finance (YFI)
If you’re new to cryptocurrency investing, you may be concerned about the best place to buy $YFI tokens. The first step is to register with a user-friendly cryptocurrency exchange with a good range of markets and coins and a reputation for customer support. Binance is a leading crypto platform ideal for beginners and experienced traders and investors:
- Register your details on the official Binance website
- Submit your ID verification documents
- After registration, download the Trust Wallet, so you are ready to store your $YFI tokens securely
- Deposit to your account – wire transfer, Mastercard or Visa. Alternatively, you can deposit with a supported cryptocurrency
- Choose a $YFI pair from the “exchange” tab: YFI/USDT, YFI/BUSD, YFI/BTC & YFI/EUR
- After purchase, send the $YFI tokens to the Trust Wallet
How do I Sell Yearn.Finance (YFI)?
You can sell directly from the Trust Wallet app on your mobile device or log in to your Binance account: –
- On the “exchange” tab, look for a stablecoin like $USDT and click on “sell”
- Transfer your $USDT to a suitable off-ramp platform that supports fiat currencies, such as Coinbase or Gemini
- Once the $USDT transfer completes, convert it to a fiat currency so you can withdraw it to your bank account
Should I Buy Yearn.Finance (YFI)?
The cryptocurrency market can be challenging for beginners. For instance, in 2021, prices across most cryptocurrencies fell by 50% or more. We aren’t investment experts, so we cannot advise about buying $YFI tokens, but be aware that there’s no guarantee for profiting from your investment.
When you are confident about investing in $YFI tokens, register with an established cryptocurrency exchange like Binance, a popular platform launched in 2017. Coinbase and Gate.io are also great for beginners, with user-friendly interfaces.
How do I invest in Yearn.Finance (YFI)? Safely?
Investing is risky, regardless of the financial instrument or market. You could potentially make a lot of money or lose all of your money. Accepting that to be the case and spending no more than you can comfortably afford to lose, investing in $YFI tokens as a project is not without risk.
Coinbase is popular with cryptocurrency newbies because the platform is easy to navigate, and it has a good range of fiat currencies. Gate.io has a vast range of coins and markets and is one of the few platforms offering a cold storage wallet.