Yearn Finance (YFI)

Yearn Finance(live YFI quote) is the name of a DeFi protocol that runs on Ethereum.
Its aim is to offer yields optimized for yield farming.
As a reminder, yield farming is an investment that generates passive income in DeFi (decentralized finance).
By entrusting your cryptos or tokens to a DeFi application(Aave, Uniswap, Compound, etc.), you earn interest. The interest percentage depends on the protocol used and the duration of the loan of your cryptos. The DeFi sector has grown considerably in recent years, thanks in particular to the Ethereum blockchain. Today, there are many applications that enable you to engage in yield farming. So how do you choose the best yields? There are two ways! The first is to monitor each application.
Although effective, this is not the most efficient strategy, as it requires a lot of time.
The second, much simpler, is to entrust your cryptos to Yearn Finance, who will find the best DeFi returns available for you!
Yearn Finance can be considered a DeFi aggregator or broker.
The application is connected to the DeFi protocols of the Ethereum environment and offers you the most interesting returns available.

Buy YFI tokens safely with Coinhouse

The Yearn Finance project wasn’t always about DeFi.
When it was launched on the markets in 2020, the YFI token was simply a speculative asset.
A bit like meme coins, YFI had a highly volatile price that was based solely on speculation.
Launched in July 2020 at around €1,000, its price quickly exploded and surpassed Bitcoin(live BTC price) to reach €32,000 by mid-September 2020.
A few months later, the developers of Yearn Finance will flesh out the project.
Instead of being a purely speculative asset, the YFI token becomes a token specialized in DeFi yield farming.
At present, YFI is Yearn Finance’s governance token.
The YFI token’s ATH has been fueled by the launch of the Woofy corner.
Woofy is a DeFi token linked to the Woofy Finance platform.
For the marketing aspect, Woofy uses a dog meme, a bit like the Shiba Inu and Dogecoin.
More importantly, this meme token is launched by Banteg, one of Yearn Finance’s developers.
While the link between this “DeFi token meme” and Yearn Finance is only implicit, it will be enough to boost YFI’s share price.
On May 12, 2021, the YFI token reaches a record price of €85,944.
The Yearn Finance team is initially made up of three well-known DeFi developers known by the pseudonyms Banteg, Milkyklim and Tracheopteryx.
But the best-known person associated with the creation of Yield Finance is André Cronje.
A leading crypto player, André Cronje is sometimes referred to as the “Godfather of DeFi”.
Born in Cape Town, South Africa, André Cronje graduated in law from Stellenbosch University in 2003.
The story goes that during his studies, André Cronje was roommates with a computer science student, which inspired him to take up programming and science.
Before creating Yield Farming, André Cronje published several code reviews for Crypto Briefing and then worked for the firm responsible for developing the Fantom blockchain.
Finally, in 2020, he founded iEarn, which later became Yearn Finance.
Since then, André Cronje has continued to work on several DeFi projects, such as Keep3r, a marketplace for blockchain services.
In all, he is estimated to have been involved in 25 DeFi projects.
He is also very active in the media on all crypto topics.

The Yearn Finance protocol is based on complex algorithms.
Nevertheless, the basic principle is simple: you entrust Yearn Finance with cryptos, and the protocol takes care of placing them on high-yield applications.
How does Yearn Finance work?
Yearn Finance’s core functionality is called “Vaults“.
In simple terms, a Vault can be compared to a “safe” that holds a token (or stablecoin) and uses it to automatically generate a return based on market opportunities.
The Vault principle is a win-win for the user, since it enables gas costs to be mutualized, and returns and capital transfers to be automated when an opportunity arises.
While the vaults involve highly complicated algorithms, they remain transparent to the user, who simply has to choose his or her vault.
Yearn Finance has reserves (or pools) for each token or crypto supported by the protocol.
For example, let’s say you want to place DAI stablecoins.
By placing your DAIs in the vault, Yearn Finance will automatically distribute yDAIs to you.
The “y-jetons” (in the case of Vault v1) are “wrapped” tokens, corresponding to LP tokens, i.e. Liquidity Provider tokens.
These are tokens given to those who provide liquidity in DeFi.
These tokens are exchanged at a 1:1 ratio, i.e. one yDAI has exactly the same value as one DAI.
With this system, users can recover their DAI at any time by exchanging them for yDAI.
In addition to recovering their funds, they will also receive the capital gains generated during the period in which they made their yDAIs available.
Yearn Finance’s developers are constantly improving their products.
After a first version of Vaults, two further updates have been rolled out: Vaults v2 and Vaults v3. With Vaults v1, a vault was linked to a single yield strategy.
With Vaults v2, each vault can interact with up to 20 different yield strategy smart contracts (pools).
With Vaults v2, tokens received by a user are prefixed with “yv” rather than “y”.
In concrete terms, if you deposit USDC on a Vault v2, you will receive yvUSDC.
The main new feature of Vaults v3 concerns smart contracts.
With v3, they are compatible with the ERC-4626 standard.
This is a very specific standard that rationalizes and standardizes the technical parameters of a yield farming operation.
The token prefix received by contributors remains unchanged at “yv”.
The two largest Vaults available on Yearn Finance are linked to Ethereum(yETH) and Curve DAO Token(yCURVE).

YFI is an ERC-20 token, built on the Ethereum blockchain and fulfills two main roles.
Firstly, it can be staking in order to receive veYFI tokens.
With these veYFi tokens, you’ll be able to enjoy greater rewards, as you’ll receive a fraction of the fees paid by users of the protocol.
YFI tokens can also be used to govern your DAO.
By owning YFI tokens, you can make proposals and take part in votes. Votes are held on the operation of the protocol, the addition of new services, the increase of the YFI token ceiling, and so on.
In simple terms, one YFI token equals one vote.
Before officially submitting a proposal, a user will discuss it on the Yearn discussion forum.
If there seems to be a lot of interest in the proposal, it can be submitted via a YIP (Yearn Improvement Proposal).
Voting takes place on the Ethereum blockchain.
Finally, it should be noted that voting rights on Yearn Finance can be sold via the yBribe module.

Yearn Finance has an overview of the various DeFi products available.
The protocol therefore works in partnership with a very large number of decentralized applications for borrowing, lending, etc.
Yearn Finance works with the Ethereum ecosystem and offers DeFi products available on Ethereum as well as on Fantom, Optimism, Polygon, Base and Arbitrum.
The best-known DeFi applications currently available on the Ethereum ecosystem are AAVE, Uniswap, SushiSwap, Spark, Curve and Compound Finance.

1. Go to your Coinhouse application and log in to your personal space or create an account.
2. Go to the buy/sell section.
3. Select the amount you wish to invest, and the currency of your choice (in this case YFI).
4. Once your transaction has been validated, you’ll find your YFIs in your portfolio.

Yearn Finance is an interesting project that has overcome its “meme corner” past to establish itself as one of the most important DeFi protocols.
Yearn Finance is a truly useful tool for generating passive income.
As a DeFi aggregator, Yearn Finance optimizes your investment to maximize returns based on market opportunities.
As well as saving you time, Yearn Finance saves you the trouble of learning the complex DeFi mechanisms of Yield Farming.
While Vaults’ investment strategies involving external protocol pools are difficult to understand , using the protocol is very straightforward.
You don’t need to know the details to make your cryptos grow with Yearn Finance.
Just connect your wallet, choose your Vault and Yearn Finance takes care of everything!
With its comprehensive dashboard, you can keep track of the interest you’re earning, and withdraw your funds (and their capital gains) at any time.
Like all investments, Yearn Finance involves risks you need to be aware of.
We recommend that you read up on the protocol before investing your money.
Also, limit your investment to what you can afford to lose.