1. PixelPlaygroundHome
  2. Metaverse Insights

Why is YFI so expensive (What is the use of YFI coin)

• Metaverse Insights • 152 views

Why is YFI so expensive? Editor\’s note: This article is from Bitcoin Informatio

Why is YFI so expensive (What is the use of YFI coin)

Why is YFI so expensive? Editor’s note: This article is from Bitcoin Information (ID: bitcoin8btc), written by AndreCronje, and published with permission from Daily Planet.

YFI (yearn.finance), a decentralized finance (DeFi) protocol, is a decentralized stablecoin project based on the Ethereum blockchain. The token of this project is called yVault. Its design introduces a “collateral-less” system to support the exchange, lending, and trading services between various tokens. Why is YFI coin so expensive? What is the principle behind it? It is because it is created by smart contract execution. Therefore, one distinctive feature of YFI is that it is a completely open-source and permissionless type of crypto asset. However, it also allows developers to use these cryptocurrencies to build their own products and earn profits. For example, YFI token is an ERC-20 token that can be used to purchase or sell any cryptocurrency.

To access this functionality and rewards, users must deposit a certain amount of funds from one address to another. Then, the address will allocate these funds to a liquidity provider (LP). Exchange on Uniswap requires the use of CurveFinance. CurveDAO was the first DeFi project to provide liquidity and the second to launch liquidity and yield farming programs. Due to its effective way of providing liquidity mining, the platform gives the tokens price elasticity while maintaining high price fluctuations.

Currently, YFI’s market capitalization has exceeded $20 billion. With the development of the market, it now has over a million users. However, this number is not accurate and may only represent a small portion of the users.

If the entire token pool is divided into 10 shares, then these over 10 million investors are eligible to participate in it. This is equivalent to you having $4 million invested in this project. So if you want to enter a project, it is best to use your ETH or DAI.

Once you start doing something, you can choose to transfer this money to an exchange, and you can also send it elsewhere at any time, just like what you are doing now.

That’s why I believe most people like Yield Farming because they believe it can make their token value more sustainable. Of course, if you don’t want to hold more tokens or directly buy more tokens from the market, you have to consider the risks of holding.

However, if you are interested in Yield Farming, you should pay attention to the following two points: 1. How to manage your tokens to ensure their security? 2. How to set the funds you want to retain and whether they can be sold on certain exchanges? 3. What is Yearn.finance?

What is the use of YFI coin

According to official news, the YFI coin, also known as “yfi,” has officially launched on the Uniswap exchange. According to the official website, this coin is the native token of decentralized financial applications. It currently supports two types of tokens: Ethereum ERC20 tokens and EOS network tokens. It mainly has three application scenarios: collateralized lending, derivative trading, and stable asset issuance platforms. Among them, liquidity mining is a popular application in the DeFi field.

The token with the largest circulation on the market is currently yearn.finance (YFI), with a total market value of up to $600 million, ranking fifth in market capitalization.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/22679/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/09/2023 13:50
Next 08/09/2023 14:13

Recommended articles