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Sunday, September 12, 2021

Is YFII a Good Investment?

DeFi projects are platforms with a distributed system of financial instruments. With their help, users can get access to services of lending, insurance, trading on the blockchain. The emergence of DeFi marked the beginning of a new round in the development of the financial system, finally allowing to get rid of middlemen and lower the bar to entry. The decentralized finance market is gaining more and more attention, so it’s no surprise that new successful DeFi projects are emerging. Today we will focus on just one of them – Yearn.Finance.

What is Yearn.Finance and how does it work?

Yearn.Finance invites all cryptocurrency owners to engage in profitable farming using DeFi protocols. If you think about it, blockchain farming resembles a regular summer cottage planting, where a farmer plants seeds for harvesting every other season. Likewise, profitable farmers harvest their crops, but in digital tokens, using bets in digital assets instead of seeds (this means that part of their cryptocurrency reserves is blocked on the wallet). For such a voluntary freeze of their own funds, users of the Yearn.Finance platforms are awarded YFI tokens.

This token boasts an unprecedented rise, because in just half a month after its launch, its price soared from $ 30 to more than 4000 USD. This result put Yearn.Finance in the league of the best farming pools of the summer season. But this was only the beginning because in mid-September the peak price of YFI exceeded $ 40,000. 

Where can you buy a YFI token?

The popularity of the project and the high price of the token ensured Yearn.Finance a place in the major league of DeFi projects. To buy YFI cryptocurrency, you will need to create an account on one of the cryptocurrency exchanges where the Yearn.Finance token is present. At the moment, the largest trading volume is observed on the Binance platform, which offers four trading pairs with YFI: 

  • YFI / BTC;
  • YFI / BNB; 
  • YFI / BUSD; 
  • YFI / USDT. 

Yearn.Finance Outlook

Many financial experts agree that the launch of Yearn.Finance heralded a new era in decentralized finance. With the development of DeFi projects, their complexity will inevitably increase, so an ordinary person without basic knowledge will hardly be able to understand the mechanisms used. Even with open-source, DeFi protocols are becoming so complex that detailed auditing is nearly impossible.

According to yfii coin news, the creators of Yearn.Finance is trying to bring the realm of decentralized finance back to simplicity and accessibility. They are interested in developing a universal working model that would allow for effective community-based management of the system. In addition, they want to protect investors from losses while maintaining a high return on investment. 

Nevertheless, Yearn.Finance managed to launch a coin that quickly caught up with Bitcoin in price and then surpassed it. At its peak, YFI was worth 4 BTC, but towards the end of the year, the YFI / BTC ratio dropped to 1 / 1.22. It is important to understand that YFI’s value depends on the number of assets that are locked in the Yearn.Finance pool.

Conclusion

The success of the DeFi project Yearn.Finance, on the one hand, showed how great the public interest in the field of decentralized finance is, and on the other hand, it motivated developers to search for new industry solutions. Apparently, the world is already mentally “ripe” to accept digital money as a financial instrument. The investment strategy of profitable farming on the Yield.Finance sites have proven their efficiency, and the price of the token is going up again.


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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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