Decentralized finance (defi) continues to make waves this week, as the Yearn Finance project token (YFI) jumped over 270% during the last five days. The digital token is worth more per coin than the price of bitcoin today, as the asset is currently trading for $15,934 per YFI.
It’s very rare to see another token price higher than the price of bitcoin (BTC) but during the last five days, the Yearn Finance token (YFI) jumped well above the BTC price per coin. The project developed by Andre Cronje is a platform built on top of the Ethereum blockchain that allows yield aggregation.
The project’s documentation describes Yearn Finance as a “profit switching lender to optimize lending yields.”
Essentially, Yearn users leverage other defi apps like Aave, Compound, Curve, and others to maximize lending scenarios. Users utilize a yield farming strategy via the myriad of liquidity pools and Yearn optimizes the best returns on liquidity.
The Yearn Finance project is also responsible for the Curve Y pool and this pool allows interest-earning via high demand stablecoins like USDT, DAI, TUSD, and USDC.
Yearn just launched a governance token and the coin is aimed at obtaining yield liquidity through the variety of different pools available. Basically the YFI token allows earnings through staking “proof-of-liquidity” and the “purpose of curve.fi is to further increase rewards on yearn.finance tokens.”
In order to leverage the Yearn Finance ecosystem users can choose from four product categories; “Earn,” “Zap,” “APR,” and “Vaults.” The “Earn” category lets a user connect a wallet and search for the best returns. The “Zap” protocol provides a user with access to the stablecoin lending abilities via Curve Finance.
The “APR” section is used to cross-reference interest rates gathered across the defi ecosystem. “Vaults” are…