YFI is coming to ZebPay! Trading goes live today, and soon you can take part in governing 2020’s most exciting yield-farming protocol.
Imagine investing in a mutual fund whose manager worked for you non-stop, around the clock. That’s basically what investing in Yearn.finance (or yEarn) is like.
YFI is the cryptocurrency that governs the yearn.finance platform.
YFI is a governance token, like a company share with voting rights.
When you buy YFI on ZebPay, you have the power to make decisions about how people can use yEarn. Governance tokens like YFI are crucial component in making DeFi truly decentralized, since decision-making power is now spread across many hands. YFI first launched in July 2020, and the token has since rallied from from $3 to $21,000 at the time of writing.
Interestingly, yEarn’s creator chose to not keep any YFI tokens for himself.
Instead, anyone who provided liquidity to the yEarn platform was rewarded with YFI tokens. Shortly after, the community decided to limit the supply of tokens to keep them scarce. Today, there are only 30,000 YFI in circulation, all of which have been distributed.
Let’s learn about yEarn
Launched by Andre Cronje, yEarn describes itself as a platform that “automates yield-maximizing profit switching opportunities for liquidity providers and yield farmers.” That’s quite a mouthful.
What this means is that when you deposit your crypto into yEarn’s Vaults, the protocol will look for the best places to invest it for you. These vaults work just like a mutual fund – pooling assets together and investing that money for the safest yet best-performing return.
There’s one difference. Mutual funds are managed by a human being, who eats and sleeps. yEarn’s vaults shift their holding constantly as conditions change, always looking for that best return. And there’s now more than $650 million worth of crypto assets looking for those returns.
yEarn’s Vaults are its most prominent offering, but there are others as well:
- Earn – a slimmed-down version of Vaults that only supports stablecoins and tokenized bitcoin.
- Zap – an access point for Zapper.fi, which simplifies taking complex positions
- APR – helps users calculate their potential returns from different investments