Yearn Finance

Yearn finance is a group of protocols running on the Ethereum blockchain that allow users to optimize their earnings on crypto assets through lending and trading services.

• YFI crypto explained

  yearn.finance is a group of protocols running on the that allow users to optimize their earnings on crypto assets through lending and trading services.

  One of a number of emerging (DeFi) projects, yearn.finance provides its services using only code, removing the need for a financial intermediary like a bank or custodian. To do this, it has built a system of automated incentives around its YFI .

  The yearn.finance platform consists of several independent products, including:

  • APY – A data table that shows interest rates across different lending protocols.

  • Earn – Which identifies the highest interest rates users can earn lending an asset.

  • Vaults – A collection of investment strategies designed to generate the highest returns from other DeFi projects.

  • Zap – Which bundles several trades in one click, saving on costs and labor.

  Users earn YFI tokens by locking cryptocurrencies in yearn.finance contracts running on the and DeFi trading platforms, using the yearn.finance platform.

  In this way, yearn.finance capitalizes on a practice commonly called “yield farming,” in which users lock up crypto assets in a DeFi protocol in order to earn more cryptocurrency. The more assets users lock in a platform, the more tokens they are awarded by the protocols.

  In its first month of operation, the yearn.finance platform attracted nearly $800 million in assets, making it one of the fastest-growing DeFi projects to date.

  Who Created yearn.finance?

  Yearn.finance was launched by independent developer Andre Cronje in 2020.

  Notably, Cronje received no funding for the yearn.finance protocol and prior to yearn.finance’s launch. This makes yearn.finance different from most DeFi projects, which typically raise investment from venture funds then assemble a team to develop the protocol.

  In July 2020, the yearn.finance platform launched its native cryptocurrency, YFI.