Yearn Finance’s YFI has reached above $50,000; Why is it fascinating?

Yearn Finance’s YFI has
reached above $50,000; Why is it fascinating?
Read News

Read News For Me

An aggregator service for DeFi investors, Yearn Finance uses automation to allow the users to maximize profit from yield farming. Yearn.Finance aims to simplify the Decentralized Finance space for those investors who want to interact in a much less committal manner.

The native crypto of the protocol is YFI, a governance token for allowing users to vote to direct the protocol. Indeed YFI is one of the most significant Ethereum based tokens because it focuses on automated strategies for yield farming. The current market price of YFI is $51,174.77 after a rise of nearly 14.15% over 24-hours. One purpose of the coin for yearn finance is that it helps generate deposits and attention. Secondly, it helps in the decentralization of the development among the users.

It is for the first time in two months that the token is trading above $50,000. It might be due to a rise in total value locked and a planned buyback. The buyback proposal was approved in January, which aimed to generate value for its stakeholders. Talking about TVL, it is almost twice than it was a month ago.

Yearn finance, an Ethereum-based protocol, was launched in 2020 to provide its users access to higher yields on their deposits of stablecoins and altcoins. The protocol allows users to access its services without an intermediary financial system because of its automated incentives around YFI.

What makes it unique is its main feature, called Vaults, which allows the users to earn yields by depositing the cryptocurrency. The funds that are deposited are further managed to maximize the yields and minimize the risk. Although it mainly focused on stablecoin during its launch, it also supports Chainlink, Ether, and other coins. The vaults also reduce the high transaction cost on Ethereum.

Yearn finance is indeed a fascinating protocol to build unique DeFi products. During the start of the year 2021, YFI was trading nearly $20,000 because of the crypto market decline. It has increased to reach more than $50k in less than four months, and it is further expected to cross the $80k mark by the end of the year because it is increasing its efficiency by boosting its user base.