The number of people investing in cryptocurrency has multiplied over the past year. As a result, many people have started to understand how crypto exchanges work and how they can make good money. The main advantage of most cryptocurrencies is their complete decentralisation, like Yearn Finance. However, not many people have heard of Yearn Finance (YIF). In this article, we will try to reveal as much information about this cryptocurrency as possible and help you understand how to invest in YIF and why you should buy Yearn Finance (YIF).

YFI is a native token of Yearn Finance
YFI is a native token of Yearn Finance

How to buy YFI?

Increased security is one of the main benefits of cryptocurrencies. Each blockchain (blockchain) is secured through various consensus mechanisms, and wallet addresses are usually encrypted using cryptography. That makes cryptocurrency much more secure than traditional electronic transactions and, at the same time, provides unprecedented transparency. If you want to buy YFI in Malaysia, we recommend choosing trusted exchanges like:

1. Binance,

2. OKEx,

3. Huobi Global.

Why invest in YFI?

Users may have a perfectly logical question: "Why should I invest in YFI in Malaysia?"

The fact is that the Yearn Finance token has seen explosive growth since its debut in February 2020. In just a few months, the token's value has skyrocketed, surpassing significant coins like Bitcoin and Ethereum in September 2020. 

It is important to note that YFI's supply is much smaller than Bitcoin and Ethereum, so its market capitalisation is still much lower than Bitcoin and ETH.

YFI (Yearn Finance) is a good option for investment
YFI (Yearn Finance) is a good option for investment

How to use a YFI?

Firstly, if you want to buy Yearn Finance, consider that the Yearn Finance Protocol can be interesting if you want to earn interest from your cryptocurrency without entrusting those funds to a custodian or intermediary.

YFI tokens could also be an interesting investment if you believe the aspiration. Finance will continue to attract users looking for interest rates and returns on their investments.

However, in any case, try to consider the risks and diversify your investment portfolio. 

Yearn Finance cryptocurrency ecosystem
Yearn Finance cryptocurrency ecosystem

About Yearn Finance

Yearn Finance cryptocurrency is a group of blockchain-based protocols. Ethereum allows users to optimize their crypto-asset revenues through credits and commercial services.

One of several emerging decentralised finance (DeFi) projects, Yearn Finance provides its services using only code, eliminating the need for a financial intermediary such as a bank or custodian. To do so, it has built an automated rewards system based on its YFI cryptocurrency.

The Yearn Finance platform consists of several different products, including:

  • APY - a data table that shows interest rates on various credit protocols.
  • Earnings - identifies the highest interest rates that users can earn by borrowing an asset.
  • Vaults - a set of investment strategies designed to maximise profits from other DeFi projects.
  • Zap - groups multiple trades with a single click, saving costs and labour.

Yearn Finance uses a practice commonly referred to as 'revenue cultivation', in which users lock crypto-assets into the DeFi protocol to earn more cryptocurrency. The more active users are blocked on the platform, the more tokens they receive through the protocols.

In its first month of operation, the Yearn Finance platform raised around $800 million in assets, making it one of DeFi's fastest-growing projects to date.

What is YFI (Yearn Finance)?
What is YFI (Yearn Finance)?

What is DeFi

DeFi is a financial instrument in the form of blockchain-based services and applications. The main goal of decentralised finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open-source protocols. That is, to open up many people to decentralised lending and new investment platforms. And allow them to earn passive income from cryptocurrency assets and save on transfer fees, loans, and deposits.

Most of the existing DeFi is built on the Ethereum blockchain, and the number of new applications in decentralised finance is growing steadily.

Token YFI works in DeFi  system
Token YFI works in DeFi system

Even though the decentralised application sector is just emerging, the benefits are already numerous. The main one is that any user can get a particular financial service, for example, a loan, bypassing a bank. 

Decentralised lending protocols minimise risk and open up access to borrowed funds 24/7. New products are particularly relevant for borrowers from countries with expensive bank loans.

The procedure for creating your digital asset and bringing it to market has become noticeably simpler and accessible to almost everyone. Payment processing lasts for a couple of hours at the most instead of several days, and interest rates and fees are much lower. Also, users have new ways to make money from cryptocurrency.

Who created Yearn Finance cryptocurrency?

Yearn Finance brief history of creation
Yearn Finance brief history of creation

Independent developer Andre Cronje launched finance cryptocurrency in 2020.

Notably, Cronje did not receive funding for the Yearn Finance protocol and did not reserve tokens for himself before the launch of Yearn Finance. This distinguishes YIF from most DeFi projects, which typically raise venture capital funds and then assemble a team to develop the protocol.

In July 2020, the Yearn Finance platform launched its cryptocurrency, YFI.

How does the Yearn Finance token work?

Yearn Finance cryptocurrency is a protocol designed to deploy contracts for the Ethereum blockchain and other decentralised exchanges running on it, such as Balancer and Curve.

Thus, users believe that YFI contracts and linked contracts in Balancer and Curve will be deployed in Ethereum to provide advertised services.

How does the Yearn Finance DeFi platform  work?
How does the Yearn Finance DeFi platform work?

What is the value of YFI cryptocurrency?

It would be surprising if someone wanted to buy YFI but didn't know why. 

YFI is the cryptocurrency that runs the Yearn Finance platform.

What does that mean? 

It means that anyone who owns YFI tokens can vote on the rules that users must follow when using Yearn Finance by voting on offers. 

For a proposal to be accepted in the Yearn Finance code, more than 50% of the vote is required. Anyone can propose, but only YFI holders can vote for it.

For those willing to invest in YFI, it is notable that YFI has an initial fixed supply of 30,000 XNUMX tokens, but this offer can increase if YFI holders choose to do so.

Either way, the YFI has value as it encourages users to lock cryptocurrencies into Yearn Finance and their contracts running in Balancer and Curve.

For example, anyone who owns a YFI can receive income collected by the protocol in the form of commissions. Yearn Finance charges a commission of 5% for vault services and 0.5% for vaults and earnings. 

Yearn Finance retains a commission of XNUMX $500,000 and distributes the remainder to YFI holders.

Loans and trade

Let's take a closer look at the subject of service. After all, users who are ready to buy Yearn Finance must surely understand the product specifics of this platform because these are the products that make its cryptocurrency unique. So that's why many people are willing to invest in YFI.

So, most of Yearn Finance's services - Earn, Zap and APY - aim to allow users to borrow or trade their cryptocurrency.

1. APY (which stands for Annual Percentage Yield) examines the loan protocols that Earn uses and gives the user an estimate of how much interest they can expect to earn yearly for a given amount of principal.

What makes YFI unique?
What makes YFI unique?

2. Earn is a way for users to get the best interest rate on loan, and it works by searching for different loan protocols, such as Aave or Composite, to find the best rates.

Users can then deposit their DAI, USDC, USDT, TUSD or sUSD on the Yearn Finance platform to get these interest rates.

Similarly, Zap allows users to make multiple investments with a single click. For example, a user can exchange DAI for yCRV (another DeFi cryptocurrency) in one share, compared to three shares on the Yearn Finance platform.

This saves the user time and reduces the opportunity cost and transaction fee.

What are Vaults used for?

Vaults are one of the main components of Yearn Finance. It is a mechanism that temporarily holds the profits of stakeholders. These profits are then distributed to YFI holders once the total value reaches or exceeds $500k. The profits are distributed in the form of yCRV tokens.

Vaults are pools of funds that follow specific strategies. Their use helps community members work together to create strategies that determine the best return protocol. Vaults allow coin holders to use any asset as liquidity. The liquidity is used as collateral, and the collateral is managed at a secure level to avoid default. The protocol then borrows Stablecoins and makes them work for one of the farmings. It then reinvests the stablecoins it has earned.

Should traders invest in YFI?
Should traders invest in YFI?

Concluding part

Cryptocurrencies have found widespread use as a form of payment - partly due to the high speed of settlement. Whether international or sent to your nearest neighbour, Crypto-transactions are usually executed lightning-fast. This is because a blockchain transaction does not require the services of any central authority to verify, nor is it interrupted by currency exchange or other activities that occur in cross-border transactions. In addition, such a transaction can be completed autonomously at any time.

Yearn Finance is an exciting protocol that creates unique decentralised financial products. The future looks promising as they hire a team of developers and marketers, but only time will tell if the project can thrive longer in the DeFi Ethereum industry.

Try always to read the news, learn new things every day, count the risks and earn money. Nothing beats honesty and hard work. Good luck!

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The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose