Inevitably, if you are a follower of the cryptocurrency market, you have definitely passed the YFI digital currency, which outperformed Bitcoin in its price.
This YFI digital currency belongs to the Yearn Finance project, as this digital currency was able to surpass the record recorded by Bitcoin at $ 20 thousand.
The YFI digital currency was valued at $ 43,000 in the middle of this month.
After the remarkable success of the Yearn Finance project and its digital currency YFI, similar projects appeared, working almost the same code for the Yearn Finance project with minor improvements and changes, and it also depends on the yield farming mechanism, this mechanism has already been discussed in some detail that can be returned from the link .
In this article, we will learn about all the different projects and divisions of the Yearn Finance project, and we will talk about a project:
Yearn Finance and its digital currency YFI
Yearn Finance Fork and its YFII digital currency
Yearn Value and its digital currency YFV
Yearn Finance Link and its YFL digital currency
Yearn Fuel and its YFUEL digital coin
1- Yearn Finance project and its digital currency YFI:
The “Yearn Finance” project started operations in February 2020 under the name “iEarn Finance”.
After that, the name of the project was changed by the founder of “Andrey Krung” and it is considered among the first projects in the field of yield farming.
The “Yearn Finance” project had a few features to gradually develop and add more capabilities related to decentralized finance.
The “Yearn Finance” project is a DeFi decentralized financing platform where users can deposit their ERC20 coins and participate for daily benefits. This is made possible by allocating capital to storage pools that offer the best returns across the network.
Why is "Yearn Finance" so revolutionary?
Before “yield farming” became prevalent, users had to participate individually with each decentralized protocol so that many projects should be identified.
With the “Yearn” project, however, users did not have to switch between multiple DeFi sites and protocols to gain “yield farming”.
The "Yearn" project solved this problem by integrating many different blockchain protocols with each other, so you only need to participate in the project once to access the many blockchain protocols that generate returns.
To maximize profits, the Yearn protocol constantly rebalances as the farming chances change.
2- The Yearn Finance Fork project and its YFII digital currency:
The YFII project was forked from the Yearn Finance project by a crypto community in China.
YFII is the first fork in YFI, and YFII is a popular digital currency in China's DeFi ecosystem.
The YFII Junction was created because the YFI governance vote wanted to offer bi-weekly bonuses, this proposal is referred to as the YIP-8 proposal.
However, this proposal failed to pass, therefore, YFII was created and split, meaning that the YFII project has a 98% coding similarity with the YFI project.
Maximum YFII width is limited to 40,000 YFII.
The initial perception was that YFII was a scam currency, especially after Balancer blacklisted the coin.
But YFII digital currency missed expectations and is performing well today, reaching $ 6,000.
3- YFValue project and its YFV digital currency:
YFValue, its YFV cryptocurrency, is another fork and fork of YFII.
This project was announced on August 16, 2020, through a post on the “Medium” website.
What is the role of the YFV?
YFV digital currency working for YFValue protocol governance, the project aims to make “yield farming” accessible to all users all over the world.
The project wants to make "yield farming" more inclusive, as the YFV digital currency gives its owners the right to vote to control the supply rate as well as the referral system.
YFV is burned automatically and occurs entirely via the blockchain.
YFVs are capped at 15,750,000 units.
The YFValue project provides “insurance” as it uses the insurance treasury through YFV team contributions and community funds to participate and integrate insurance protocol.
Similar to the "Nexus Mutual" project, YFValue aims to further reduce risk, on behalf of all of the YFV's stakeholders.
4- The Yearn Finance Link project and its YFL digital currency:
The “Yearn Finance Link” project is popular with its YFL digital currency.
This project was announced through a post on the “Medium” website on August 7, 2020.
This project is also a modified version of the YFI project.
This project has to do with the Chainlink project, where the YFL project development team took Andrey Krung's Yearn project and reshaped it.
They also adapted it to allow LINK coins to be installed.
Later on, they also brought the concept of “yield farming” to the owners of the LINK coin.
Many analysts call the YF Link project the bridge linking “ChainLink” and “Yearn Finance”.
To give a quick example, you can deposit LINK and YFLINK coins into Balancer Collection, giving you BPT Coins.
Then BPT coins can be placed with YFLINK set.
This means you can earn YFLINK from YFLINK pool and BPT through Balancer.
In addition, the “Yearn Finance Link” hosts five different groups, each with their own unique ways to increase revenue.
5- The Yearn Fuel project and its YFuel digital currency:
The Yearn Fuel Project aims to make Yearn Finance affordable for everyone.
Therefore, it does not matter if the user is a big whale or a small investor as the "Yearn Fuel" project wants to make "Yearn Finance" available to everyone.
This project has some very unique features, which include the right to vote to control the bid rate.
In addition to that, YFuel Coin also gives the user the right to vote on the referral system, and the coin comes with automatic burning.
The project management is also implementing a new economic model for burning currencies, called "GRAVOIL".
Under the "Gravoel" model, they would burn up to 1% of the total supply of digital currencies each month, starting on the 15th of each month.
The idea behind this model of coin burning is to increase liquidity.
Finally:
It seems that the strength and value of the digital currency YFI and its override of Bitcoin is not only related to the total supply of the currency, but also to the strength of the project, as through what we have presented above suggests what the Yearn Finance project offers and how it provides solutions that meet the needs of the decentralized financing market, so that other projects operate in the same mechanism. To be reproduced and modified according to the purpose and objective set.
But this also opened the way for fraudulent projects that sometimes copy Yearn Finance with one goal of defrauding investors.
Therefore, research and learning about decentralized financing projects is a top priority before depositing any money into them.