Yearn Finance token, the primary token for Yearn Finance, one of the top projects in the Decentralized Finance sector, hit a new all-time high on the 12 February 2021. Trading as high as USD 50,000 on leading cryptocurrency exchange Bityard.
This is above Bitcoin's all-time high of USD 48,000. The surge came after the world's largest digital currency asset manager Grayscale, located in New York, registered an LLC for a Yearn Finance trust, prompting traders to place sell orders at higher prices.
Price chart from Bityard showing YFi trading above USD 50,000
Yearn Finance has a history of hitting high price levels, this isn't the first time it has flipped Bitcoin's price. Its last bullish run took it to a price of USD 43,000 in September 2020, at a time when Bitcoin was trading at USD 10,000 and Ethereum at USD 360.
This begs the question "what makes YFi valuable?"
YFi is the primary token of the Yearn Finance protocol. The yearn finance protocol is an open-source Decentralized Finance protocol that runs on the Ethereum blockchain.
This protocol increases the value of user assets, by moving user investment between different yield farming platforms, ensuring that investors’ funds remain in the highest paying platform and generate massive ROI.
YFi started at a price of approximately USD 790 in the month of July 2020 and within 6 weeks it was trading at an unexpected price of USD 3,500 and 12 days later it reached a value of USD 43,000, an impressive progression.
The main component of the Yearn Finance protocol that enables it run successfully is the vault
Vaults. Funds when deposited are pulled into vaults, funds are managed using a strategy that aims to maximize returns and reduce risks. Vaults are part of this strategy as they reduce transaction costs, by gathering capital in one account, thereby reducing gas fees.
They also automatically move investors capital to higher revenue generating markets, so users do not need to be proficient in Decentralized Finance protocol to make money from it.
Other services that are offered by Yearn Finance include:
Earn. A lending aggregator, funds are shifted between different lending protocols and compound automatically as interest rate changes. Users can deposit to these lending aggregator contracts via the earn page.
Zap. A feature that allows investors to move through different liquidity pools. These pools benefit from the lending aggregators and also, earn users trading fees by participating as liquidity providers.
yInsure. yInsure is a pooled insurance that protects investors funds by providing coverage from financial loss from smart contract bugs and various risks.
About Yearn Finance
Yearn Finance is one of the fastest- growing DeFi projects till date. In only its first month of operation, the platform attracted around USD 900 million in assets this has grown to a current market capitalization of USD 1.6 billion. With a lot of potential investors, indicating interest in the wonder-token, the Yearn Finance project is expected to keep growing, with predictions estimating the price of YFi to clock USD 150,000 by the end of the year 2021.
YFi was launched with no ICO or premine for early investors. Instead, 30,000 tokens were distributed equally to users on the platform. This makes the coin a scarce commodity, with some investors at a loss for where to buy YFi.
An easy way to acquire YFi is through the spot trading option available on the cryptocurrency exchange Bityard. YFi and other cryptocurrencies can be traded (bought and sold), instantly and can also be exchanged with other cryptocurrencies.
Spot Trading page on Bityard showing YFi/USDT pair
The trading process on Bityard is simple and easy to navigate for beginners and investors. Assets are secured and highly protected.
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