Yearn Finance is one of the most well-known decentralized finance projects in the world of cryptocurrencies.
As we know, Defi awards its users the ability to earn the highest annual return (APY) on their Coins.
Yearn Finance is one of those yield farming projects of Defi that offer engaging returns.
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What is Yearn Finance (YEarn)?
Yearn Finance is an ecosystem of protocols based on Ethereum.
The chief intention of Yearn finance was to make it uncomplicated for users to interact with Defi protocols and to maximize the annual interest yield.
As yield farming grew extra engaging, users began shifting their funds in Defi credit protocols such as Yearn finance or Curve Finance to earn maximum annual returns.
The complete yearn finance System was developed by Andre Cronje, is the founder of Yearn finance and the Community.
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The programmer has extensive experience in the private sector, insurance, Fintech, Big Data, and centralized Blockchains.
He is seen as an influential person that strives to present new users with a more straightforward way to understand Defi.
He believed that investing in cryptocurrencies could be a risky thing.
But the enchantment behind decentralized financial protocols and the big returns were adequate to persuade him to invest and make a Defi platform.
He successfully developed a specific program with Curve Finance and Aave, known as iEarn.
Yearn Finance is the upgraded form of iEarn and developed by the same developer, Andre Cronje.
The iEarn now also known as YEarn, is a yield aggregator.
This protocol automatically invests its capital into the defi projects that have the highest annual returns.
YEarn is noncustodial. None of the user’s funds are kept with Yearn.
Uniswap, Balancer, and Curve Finance, the top three decentralized exchanges use this model of iEarn to provide the most suitable rates to their users.
What is YFI Token?
Yearn Finance token is known as YFI. It is an ERC-20 Token.
YFI is fundamentally a governance token. YFI holders have voting power in Yearn Finance governance.
The concluding decision of the community is based on majority votes.
Only YFI holders can take part in Yearn community decision making.
Where To Buy YFI Tokens
YFI is listed on Uniswap, Binance, Okex, Lbank, FTX, and others. You can buy YFI tokens on these crypto exchanges.
How To Earn YFI Token
There is no yield farming in Yearn finance to earn YFI tokens.
Only 30000 YFI were initially launched and all were distributed among early Yearn stakers.
There were plans to make and distribute more YFI tokens, but the idea was downvoted by Yearn governance.
There are three ways to earn YFI cryptocurrency.
The first and more renowned way is to stake Lp tokens on curve finance Y pool to earn YFI.
How To Earn YFI Token By Staking on Curve Finance Y Pool
- To earn YFI tokens, you need to provide liquidity on the curve finance Y pool.
- Read complete details on How To Provide Liquidity On Curve Finance Y Pool
- By providing liquidity you will get LP tokens that you can use to earn YFI tokens.
image source curve.fi
- If you are providing liquidity on curve finance Y pool and generating LP tokens then go to https://www.curve.fi/iearn/deposit, a window as shown above will open.
- When LP tokens in your wallet a new option “Stake Unstake” will be available.
- Click on that “Stake Unstake” button and approve all transactions from your wallet.
- Once all transactions are confirmed, Curve finance will stake your LP tokens and you will start earning YFI.
The second method is to deposit a mixture of Dai and YFI (98% Dai and 2% YFI) into an incentivized Balancer pool (A pool on Balancer Exchange) to get Bal tokens (Balancer Token). Your Bal tokens will then be deposited with yGov to start earning YFI.
The third method requires users to deposit a mixture of YFI and yCRV into a Balancer exchange to receive BPT tokens. These tokens would be stored in yGov to earn YFI tokens.
Yearn Finance (YFI) Social Media
What Is Yearn Finance 2 (YFII)?
Does Year delete whatis Yhat Is YFII?
Yearn Finance 2 (YFII) is a fork of YFI and is a new token that can be earned by yield farming.
YFII is known as DFI.Money.
YFII is a governance token. It was made so that interested members that we’re unable to take part in YFI can contribute to YFII.
As it is a governance token, YFII holders are part of the community and can engage in the resolution making of Yearn.
YFII launch was not smooth. There were a lot of scam allegations as there was a fear in the community that YFII is being made to exit scam.
The motive why the community worried is that the back end functioning of YFII was based on Governance and Minter addresses, so it was simple to produce as many tokens as possible.
The community anxiety was resolved by burning Governance and Minter addresses.
The other concern of the community with YFII was that the owner key was under the use of single man Andre Cronje. He could create an unlimited supply of YFII.
This issue was solved by burning the owner’s key. Now no new YFII can be made unless the approval of the community via governance voting.
YFII is allowing a huge return of nearly 2000% APY. But there are a lot of uncertainties using YFII smart contracts.
You can see what APY can be earned by YFII farming on https://yieldfarming.info/yfii/ycrv/
YFII governance model is based on multi signatures where power is shared among 11 members.
To approve any action 7 members must agree to carry on.
More information about 11 members can be found onhttps://keys.yfii.finance.
DFI. Money (YFII) is also listed on Binance. Pairs include YFII/USDT, YFII/BUSD, YFII/BNB, YFII/ETH, YFII/BTC.
You can quickly buy YFII on Binance.
How To Earn YFII
You can earn YFII by providing liquidity in various pools.
There are two main ways to yield farm YFII. All of them give different results and have their risks.
Method 1
- Go to https://www.curve.fi/iearn and provide liquidity for the Curve finance Y pool. By deposing stable coins DAI, USDT, USDC, or TUSD.
- This will generate LP tokens.
- Take your LP tokens to https://yfii.finance/#/
- Now stake you token in the “yearn” pool to start earning YFII tokens.
Method 2
- The second method is to deposit a mixture of Dai and YFI (98% Dai and 2% YFI) into an incentivized Balancer pool (A pool on Balancer Exchange) to get Bal tokens (Balancer Token).
- Take you Bal Tokens to https://yfii.finance/#/
- Now stake your Bal tokens on “Balancer (YFII-DAI)” Pool to start learning YFII tokens.
Any earned rewards can be withdrawn at any time. Also, any staked tokens can be withdrawn at any point. There is no lock-up period of staked tokens.
You can see stats on YFII yield farming on https://yieldfarming.info/yfii/ycrv/
Conclusion
Yield farming whether on curve finance, Yearn Finance, or DFI. Money or any other platform is very critical and has a lot of risks. You should not invest what you cannot afford to lose.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
