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Decentralized finance (defi) continues to make a stir this week, as the Yearn Finance (YFI) project token jumped more than 270% in the past five days. The digital token is worth more per coin than the bitcoin price today, as the asset is currently trading for $ 15,934 per YFI.
It is very rare to see another token price higher than the bitcoin (BTC) price, but in the last five days the Yearn Finance (YFI) token has jumped well above the BTC price per coin. The project developed by Andre Cronje is a platform built on the Ethereum blockchain that allows for the aggregation of returns.
The project documentation describes Yearn Finance as a “lender who changes profit to optimize loan returns”.
Essentially, Yearn users leverage other defi apps like Aave, Compound, Curve, and others to maximize lending scenarios. Users use a yield farming strategy across the myriad of liquidity pools and Yearn optimizes the best returns on liquidity.
The Yearn Finance project is also responsible for the Curve Y pool and this pool allows you to earn interest through high demand stablecoins such as USDT, DAI, TUSD and USDC.
Yearn has just launched a governance token and the coin is intended to obtain yield liquidity across the variety of different pools available. Basically the YFI token allows for earnings through staking “proof-of-liquidity” and “the purpose of curve.fi is to further increase the rewards on yearn.finance tokens”.
In order to take advantage of the Yearn Finance ecosystem, users can choose from four product categories; “Earn”, “Zap”, “APR” and “Vaults”. The “Earnings” category allows a user to link a portfolio and search for the best returns. The “Zap” protocol provides a user with access to stablecoin lending capabilities via Curve Finance.
The “APR” section is used to cross-reference the interest rates collected in the defi ecosystem. Vaults are automated cash extraction strategies that optimize pool liquidity by depositing assets that will be managed in the most efficient way.
Asset-specific liquidity pools are already in high demand on decentralized exchange (dex) platforms such as Balancer and Uniswap.
The YFI token has seen phenomenal gains over the past week following the madness that followed the YAM project.
Since August 15, YFI has increased more than 270% in value from $ 4,272 per coin to the current $ 15,934 per YFI spot price. YFI was up over 54% on Thursday and in terms of ETH it is worth over 38 coins and 1.34 BTC using current exchange rates.
Now in terms of market cap, there are only 30,000 YFIs, so the token’s overall market valuation is only $ 477 million at the time of publication.
The market capitalization of $ 477 million places the Yearn Finance project in 36th place among over 5,700 existing cryptocurrencies and tokens.
What do you think of the defi Yearn Finance project? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, yearn.finance, Coinmarketcap.com,
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