{"id":9166,"date":"2023-02-17T04:16:49","date_gmt":"2023-02-17T04:16:49","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=9166"},"modified":"2023-08-03T16:33:53","modified_gmt":"2023-08-03T16:33:53","slug":"what-is-yearn-finance-yfi","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi","title":{"rendered":"What is Yearn.finance (YFI)?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi\/#how_does_yearnfinance_work\" >How does Yearn.Finance work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi\/#key_features_of_yearnfinance\" >Key features of Yearn.Finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi\/#how_do_yfi_tokens_work\" >How do YFI tokens work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi\/#yfi_wallet\" >YFI Wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yearn-finance-yfi\/#where_to_buy_yfi\" >Where to buy YFI?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p><strong>Launched in February 2020, Yearn Finance is an open source decentralized finance<\/strong>\u00a0(DeFi) lending protocol based on the Ethereum blockchain, which allows users to<strong>\u00a0maximize their own returns<\/strong>\u00a0(or APY), on crypto assets through\u00a0<strong>lending and trading services.<\/strong><\/p>\n<p>It functions as a yield aggregation platform to maximize user investment by automatically moving user funds between Defi lending protocols (such as Compound, Curve or Aave).Currently, Yearn is one of the most popular and decentralized Defi projects in the cryptocurrency sector and is considered\u00a0<strong>the most famous project in the world of Yield Farming.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"row-742231148\" class=\"row row-collapse row-full-width align-equal align-center\">\n<div class=\"col small-12 large-12\">\n<div class=\"col-inner text-center\">\n<div id=\"banner-355622491\" class=\"banner has-hover\">\n<div class=\"banner-inner fill\">\n<div class=\"banner-bg fill\">\n<div class=\"bg fill bg-fill bg-loaded\"><\/div>\n<\/div>\n<div class=\"banner-layers container\">\n<div class=\"fill banner-link\"><\/div>\n<div id=\"text-box-1117517284\" class=\"text-box banner-layer x50 md-x50 lg-x50 y50 md-y50 lg-y50 res-text\">\n<div class=\"text dark text-shadow-1\">\n<div class=\"text-inner text-center\">\n<p>If you want to know\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yield-farming-of-cryptocurrencies\">what Yield Farming is<\/a>\u00a0and what it has to do with decentralized finance and Yearn.finance, don\u2019t miss the post dedicated to it.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Yearn.finance is therefore a kind of<strong>\u00a0liquidity manager that automatically searches for the best APY (annual percentage yield)<\/strong>, always taking into account the level of risk with which the client is willing to work.<\/p>\n<p>Indeed, platform users have the right to cast a vote on the direction of the protocol that most favors their intention.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"row-1709159036\" class=\"row row-collapse row-full-width align-equal align-center\">\n<div class=\"col small-12 large-12\">\n<div class=\"col-inner text-center\">\n<div id=\"banner-1761894042\" class=\"banner has-hover\">\n<div class=\"banner-inner fill\">\n<div class=\"banner-bg fill\">\n<div class=\"bg fill bg-fill bg-loaded\"><\/div>\n<\/div>\n<div class=\"banner-layers container\">\n<div class=\"fill banner-link\"><\/div>\n<div id=\"text-box-1231622476\" class=\"text-box banner-layer x50 md-x50 lg-x50 y50 md-y50 lg-y50 res-text\">\n<div class=\"text dark text-shadow-1\">\n<div class=\"text-inner text-center\">\n<p><b>APY\u00a0<\/b>(Annual Percentage Yield) is a tool that searches the various lending protocols used by Yearn and provides the user with an estimate of how much interest they can expect to earn annually on a certain amount of principal.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_yearnfinance_work\"><\/span><b>How does Yearn.Finance work?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Yearn.Finance is designed to\u00a0<strong>automatically and autonomously move users\u2019 funds to the most profitable providers<\/strong>\u00a0by identifying the protocol that offers the best annual percentage yield (APY).<\/p>\n<p>The protocol\u2019s clients provide liquidity that is automatically diverted to different sectors of decentralized finance to find the best returns.<\/p>\n<p>Depending on the risk, the platform will decide to\u00a0<strong>provide liquidity where it is most profitable<\/strong>, optimizing the search for the best possible return and moving funds when a DeFi project, with the same risk, will have higher APYs.<\/p>\n<p>Yearn.Finance allows users to deposit ERC-20 stablecoin such as DAI, USDC, USDT, into the protocol. In return, users receive an equivalent amount of yToken (e.g., yDAI, yUSDC, yUSDT) that is equivalent to any other ERC-20 token.<\/p>\n<p>Therefore, the Yearn Finance platform automatically converts tokens into a protocol with the maximum throughput to maximize the user\u2019s benefit.<\/p>\n<p>One of the most interesting aspects is that\u00a0<strong>the network only charges a small fee deposited in the platform pool<\/strong>\u00a0and distributed among YFI token holders as dividends.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"key_features_of_yearnfinance\"><\/span><b>Key features of Yearn.Finance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Below I will briefly describe the features of Yearn Finance\u2019s main products:<br \/>\n<b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/yearn.finance\/vaults\"><b>Vaults:\u00a0<\/b><\/a>Yearn Finance manages several vaults (Vaults) that represent a passive investment strategy and cover different tokens such as DAI, TUSD, USDC and USDT and other cryptocurrency combinations.<\/li>\n<\/ul>\n<p>Vault strategies are aimed at maximizing the return on an asset in the vault but are not based on simply lending coins, as is the case in the standard Yearn protocol. Most vault strategies are more active in maximizing returns and include: providing collateral, borrowing other assets (such as stablecoins), providing liquidity, farming other tokens and selling for profit.<\/p>\n<p>The profits generated by the vaults are used to buy more underlying assets.<\/p>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/v1.yearn.finance\/earn\"><b>Earn:<\/b><\/a>\u00a0During 2020, Yearn Finance expanded its functions and now allows users to access other services. One of them is Earn. This is a product that fully optimizes the interest maturity process for end users to ensure they get the highest interest rates at all times among the platforms listed above.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Zap:<\/b> is a tool that allows users to enter and exit different liquidity pools available in Curve Finance. Currently, users can use five stable currencies (BUSD, DAI, USDC, USDT, TUSD) and \u201cZap\u201d into one of two groups (y.curve.fi or busd.curve.f) in Curve.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Cover:<\/strong>\u00a0is insurance that allows users to obtain coverage against financial loss for various smart contracts and\/or protocols on the Ethereum blockchain. The coverage is underwritten by Nexus Mutual.<\/li>\n<\/ul>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_do_yfi_tokens_work\"><\/span><b>How do YFI tokens work?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_405488352\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu%C3%A9-es-Yearn-finance1-1024x701.jpg\" sizes=\"(max-width: 1020px) 100vw, 1020px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-1024x701.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-300x206.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-768x526.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-1536x1052.jpg 1536w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-2048x1403.jpg 2048w\" alt=\"yearn YFI Token Bitnovo\" width=\"1020\" height=\"698\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-1024x701.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-300x206.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-768x526.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-1536x1052.jpg 1536w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-2048x1403.jpg 2048w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/01\/Qu\u00e9-es-Yearn-finance1-1024x701.jpg\" data-sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>YFI is Yearn.finance\u2019s native cryptocurrency that differs from most\u00a0<strong>cryptocurrencies in that it is a governance token with no intrinsic value<\/strong>\u00a0and has an independent protocol.<\/p>\n<p>Also, unlike other cryptocurrencies,\u00a0<strong>it cannot be mined.<\/strong><\/p>\n<p>YFI is distributed to those users who provide liquidity to any of the platforms that use yTokens and its purpose is to give the entire governance of the yEarn system to the community, as it allows holders to vote on decisions that affect Yearn.<\/p>\n<p>This means that platform users have the right to vote on the protocol management that best suits their needs.<\/p>\n<ul>\n<li aria-level=\"1\">To participate in the protocol, users first have to invest their YFI tokens in a government contract.<\/li>\n<li aria-level=\"1\">Once their YFIs are invested,<strong>\u00a0they receive voting rights and a percentage of the protocol\u2019s profits<\/strong>\u00a0for each of Yearn\u2019s products.<\/li>\n<li aria-level=\"1\">To unlock and receive the rewards, users will have to vote and, after three days,\u00a0<strong>they will receive the earned rewards.<\/strong><\/li>\n<\/ul>\n<p>Regarding YFI supply,<strong>\u00a0there are only 30,000 YFI tokens<\/strong>\u00a0and, to date, 29,969 YFIs have already been minted and distributed (only 31 tokens remain to be issued).<\/p>\n<p>This is probably one of the reasons for its incredible rise in value.<\/p>\n<p>In fact, at the end of August 2020,\u00a0<strong>the YFI token surpassed the all time high of BTC<\/strong>\u00a0and nearly doubled that milestone reaching $39,238. At the time of writing, the price of YFI is $32,762 while that of bitcoin is $32,784.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"yfi_wallet\"><\/span><b>YFI Wallet<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>You can store your YFI tokens in any of the most popular wallets such as Trezor, Ledger, MyEtherWallet, Coinomi, Atomic Wallet.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"where_to_buy_yfi\"><\/span><b>Where to buy YFI?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>If you want to invest YFI in one of the platforms that belong to the DeFi space, but have not yet obtained their tokens, you can\u00a0<strong>buy YFI on one of the exchanges that support this type of cryptocurrency.<\/strong>\u00a0Among them we find:<\/p>\n<ul>\n<li aria-level=\"1\">Binance<\/li>\n<li aria-level=\"1\">Coinbase<\/li>\n<li aria-level=\"1\">Kraken<\/li>\n<li aria-level=\"1\">Bitpanda<\/li>\n<\/ul>\n<p>Yearn Finance, as you have seen, is one of the trending projects in the decentralized finance and Yield Farming landscape which, given its mergers and partnerships with other protocols, heralds a very promising future.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>If you have found what I have told you interesting and want to get more information about\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/main-defi-platforms\/\">decentralized finance<\/a>\u00a0and the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/\">most successful platforms of the DeFi ecosystem<\/a>, don\u2019t miss the articles dedicated to these interesting topics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Launched in February 2020, Yearn Finance is an open source decentralized finance\u00a0(DeFi) lending protocol based on the Ethereum blockchain, which allows users to\u00a0maximize their own returns\u00a0(or APY), on crypto assets through\u00a0lending and trading services. It functions as a yield aggregation platform to maximize user investment by automatically moving user funds between Defi lending protocols (such [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[165],"tags":[],"class_list":["post-9166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=9166"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9166\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/8292"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=9166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=9166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=9166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}