Crypto Corner: a profile on YFI

Have you met the Yearn Finance token (YFI) yet? We welcomed it to the Wirex app in July, but in case you haven’t been introduced yet, here’s the lowdown.

What’s it all about?

YFI is an Ethereum-based ERC-20 token that powers the Yearn Finance protocol, a cutting-edge decentralised yield generator that allows users to increase their crypto earnings through trading and lending services.

Yearn Finance provides a range of independent products, from liquidity aggregation and yield generation to lending and insurance on the Ethereum blockchain. These include the following:

  • APY – shows interest rates across different lending protocols.

  • Earn – determines the highest interest rates users can earn through lending their crypto assets.

  • Vaults – show a set of investment strategies that generate the highest returns from other DeFi projects.

  • Zap – bundles multiple trades in one click, saving the user time and gas fees.

The purpose of its native YFI token is to reward and incentivise users, as well as give governance to the community. Users can earn YFI by locking cryptocurrencies via smart contracts on Balancer and Curve. The more tokens they lock, the more YFI they earn.

YFI token holders also have the power to vote on proposals that’ll influence software rules. These proposals require over 50% of votes to be implemented into the code.

What can you do with YFI?

On top of using YFI for governance, YFI is available to buy and exchange at exclusive OTC rates in the Wirex app. Plus, you can spend it in real –life with the Wirex card and earn crypto rewards for every online and in-store purchase!

Who came up with the idea?

Yearn Finance (then known as “iEarn”) was founded by Andre Cronje and launched in 2020. Cronje is known as “the father of DeFi” by many and has multiple DeFi projects to his name, including Eminence, Keeper Finance, Deriswap and Fantom.

Cronje explained in an interview that Yearn Finance was launched for personal reasons – he wanted to overhaul the lengthy process of moving his assets between several different platforms. He created the project to let users automatically move and redirect their funds between different lending protocols, such as AAVE and Compound.

Unlike most DeFi projects, Yearn Finance didn’t receive any funding through an initial coin offering (ICO) and Cronje didn’t reserve any tokens for himself. A limited supply of just $30k YFI was distributed to liquidity providers who deposited their assets into Yearn pools.

Any fun facts?

In September 2020, YFI made headlines for being worth more than bitcoin - it hit an all-time high of around $43,000, whereas BTC was only worth $10,500 at the time.

A bonus fact for you is that Andre Cronje pronounces “YFI” as “waifu” as a joke about anime fans.

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In September 2020, YFI made headlines for being worth more than bitcoin - it hit an all-time high of around $43,000, whereas BTC was only worth $10,500 at the time.
:open_mouth: wow straight facts, did not know that!

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Now i know :sweat_smile:

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