Most of us all most have been shocked by the news of a token that surpassed the price of bitcoin these week. I will be writing a little Article on what these coin.
What is YFI token?
the governance token that powers decentralized finance protocol yEarn, or yearn.finance. it is Decentralized and it is operated on a etherium platform.yearn.finance has a current supply of 30,000 with 29,962.825 in circulation. The last known price of yearn.finance is $33,594.18 USD and is up 5.90% over the last 24 hours.
There are multiple protocols providing yield (returns) on the capital that you lend. These yields vary from one protocol to the next. YFI automates & optimizes lending such that you can earn maximum value on your capital without researching each protocol.
YFI being a government tokens meaning that holders can pledge it to cast their vote on policy proposals that influence the future of the yEarn network.
According to cronje the founder of yEarn, Earning YFI is simple, provide liquidity to one of the platforms above, stake the output tokens in the distribution contracts (we will provide an interface for this), and you will earn a (governance controlled) amount per day,”.
And you can also earn by deposit liquidity in Yearn pools which will get yTokens, accounting for their deposits. These are what DeFi’s itinerant farmhands stake to earn YFI.
y.finance and yEarn
Well the YFI token is used by both the yfinance and yEarn. In Yfinance the token is used as a tool in producing returns from stablecoin deposits such as Tether. While in Yearn the token is given as reward for depositing liquidity bon Yearn pool.
YFI token to the lime light after it overtakes Bitcoin as the most expensive digital currency, when expert believe that the limited supply of the YFI token may have been one of the catalyst that accelerated the coin the the current market price that we have today.
Well according to some critics they believe that just like One of the latest projects to offer similar benefits was YAM Finance which eventually collapsed. The digital asset went from $0 to almost $140 but collapsed shortly after due to a bug found in the rebasing contract. Funds inside the staking contract were safe but that didn’t stop the price of YAM to basically die.
To study more about the critics you can click on the link below
https://cryptoticker.io/en/yfi-price-overtakes-bitcoin-at-12800-flippening-is-complete/
And also to all investor out there we should all take note before purchasing the YFI token that that the price of the token itself is still based purely on speculation and there is no guarantee that it will not crash even if nothing happens to the project itself.
To read more about Yfi token you can go online and also check sites like coingeko,cointelegraph and coin cap market.
Thank you all, you can all leave a comment on what you think about YFI token
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