Why is YFI rising so fast (why is YFI price so high)
Why YFI is rising so fast Editor’s note: This article is from BlockBeats (ID: BlockBeats), reprinted by the Daily Planet with authorization Why is YFI rising so fast and why is it so popular? In DeFi, one of the hottest concepts in the Cryptocurrency market, Yearn.Finance is one of them Andrew Cronje, founder of year. finance, stated that the year agreement will allow investors to obtain additional returns and liquidity mining rewards by pledging YFI, without relying on lending platforms or exchanges. He believes that this token has the potential to drive the development of DeFi due to its characteristics such as composability, flexibility, and unlicensed nature
Yearn.finance is a decentralized trading platform that provides liquidity pools and income News aggregator based on automated Market maker AMM. Users can earn up to 20% annualized rewards by depositing and withdrawing liquidity, and then choose to use the liquidity pool or DEX for redemption and trading The protocol of Year also supports various protocols, such as Curve and UniSwap. The governance mechanism of Yearn. finance differs from other protocols in that its tokens are not pre dug, and there is no team directly controlling management costs. However, due to its open source and fully public smart contract, developers can allocate funds for their projects without changing any parameters We can see from the above graph what YFI is and how its value is reflected Yearn’s protocol adopts a new model called “yVault”. It is driven by a security module, which aims to make the system more flexible and reduce friction costs. This method allows anyone to participate in creating and running a new product According to the announcement released by year. finance, its main purpose is to increase support and improvement for the protocol during its launch. This model, known as yCRV, is built by members of the Year community and will become a part of the Year ecosystem to help them optimize their product experience In addition, yearn.finance has also released a governance proposal to encourage communities to actively develop their agreements. These proposals include adding more assets as collateral and improving governance authority The main highlight of the Year protocol is its use of the “aggregated market place” function to enhance the protocol’s functionality. At present, the agreement has deployed over 5 million working capital pools and has begun to accept deposits, and continues to grow Year’s token holders can vote to determine which types of tokens are worth locking into the YIP-8 proposal. The YIP-8 proposal is a governance approach proposed by Robert Leshner, CEO of Compound Yieldfarming, which provides liquidity for DeFi to earn profits, has received significant attention in the past few weeks. It has recently attracted the attention of many investment institutions and investors because it can help them obtain huge returns from the DeFi market At the beginning of 2020, the price of the token reached a historic high of over $40000. Now, the asset has skyrocketed by 270% – indicating that the value of this project is rapidly increasing as more and more people participate in the decentralized financial ecosystem YFI is a forked project of YamFinance. Yam is a Stablecoin based on Ethereum smart contract, which is as elastic and anti censorship as Bitcoin. Its design goal is to prevent any loss caused by Human error or malicious behavior After the approval of the YIP-8 proposal, users will be allowed to deposit ETH, USDC, or other digital assets onto their platform. These assets include DAI, WBTC, USDT and other Cryptocurrency. These funds are sent to an address and automatically allocated to holders based on their locked total amount The YIP-5 proposal was initiated by Compound, aiming to allow users to increase their investment portfolio by leveraging the revenue generated on their platform. If this money is fast enough, they can successfully trade in the DeFi field Although many people currently use YFI as collateral, YFI has not played its role as expected because its price fluctuates violently and cannot generate real returns YieldFarming is a new concept where people can arbitrage by hedging various risks. However, this method does not mean that yfi will bring higher returns. On the contrary, it provides a novel strategy to generate profits. We know that when you invest all your funds in the y pool, you will make a profit. However, if you put all your funds in the pool in your hands, your profits will also decrease. “
YFI is a leader in DeFi. YFI has been popular since its launch and is one of the first star applications in the DeFi field. It was initially launched in 2017 and has since gained the favor of many developers, some of whom hope to become “yield farmers” and believe that DeFi will greatly benefit the entire industry How did YFI develop? YFI is the soul of DeFi. YFI token is created by the DeFi platform yearn.finance. It combines the characteristics of Ethereum Virtual Machine (EVM) and Decentralized Autonomous Network to maximize the interests of each participant.
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