Do you know about the YFI coin offered by Yearn Finance? For its decentralized finance platform, it serves as a governance token.
In terms of USD pricing, it surpassed Bitcoin’s record high. August saw highs of over $38,000 for the YFI token, and in mid-September 2020, it reached a top of $43,000.
What distinguishes the YFI project from other DeFi majority governance coins, in your opinion? Limited availability! Indeed, the quantity of YFI tokens is quite restricted. Never will the maximum supply of YFI coins surpass 30,000. YFI tokens are now in circulation with 29,968 in total, according to CoinMarketCap.
An examination of all the many Yearn Finance projects and forks is done in this article. Let’s discover what makes each project special.
How does yearn finance work?
Yearn Finance launched iEarn Finance, a related startup, in February 2020 and started operating. Furthermore, Andre Cronje relaunched iEarn as yEarn. Consider Yearn Finance the first endeavor undertaken by a professional to create a Yearn finance yield farming guide. But yEarn’s toolkit now includes a few additional skills.
Users of Yearn Finance can deposit and stake their ERC20 tokens on this DeFi platform. They get daily interest in exchange. Allocating the funds to staking pools that provide the highest profits throughout the network enables this.
What made this so groundbreaking? Before yield farming became widely accepted, users had to get familiar with several projects and stake separately with each protocol. Users might obtain yield farming earnings without going through several DeFi sites by utilizing the Yearn project. Yearn used the integration of many blockchain technologies to tackle this issue. Thus, to gain access to several interest-bearing blockchain protocols, you just need to stake tokens once using Yearn. The Yearn procedure continually rebalances when yield-farming prospects change to maximize earnings.
DFI money’s Yearn Finance Fork (YFII)
The Chinese crypto community split from YFI, the original fork of YFI, to create YFII. In the Chinese DeFi ecosystem right now, the YFII token is the most popular money. A YFI governance vote, known as the YIP-8 proposal, sought to add weekly halving to the project, which led to the creation of the YFII fork.
Nevertheless, this idea was not approved. Consequently, the YFII fork was made to carry out the halve suggestion. Put otherwise, there is a 98% code similarity between the YFI project and the YFII project.
YFII’s maximum supply has been limited to 40,000 units. At first, people thought that YFII was a fraud. Balancer had banned the token as a result. Still, the YFII coin is performing well right now.
YFValue (YFV)
YFV, or YFValue, is a branch of YFII. On August 16, 2020, it was revealed in a Medium article. What use does the YFV token serve, then? It serves as the YFValue protocol’s governance token. Their goal is to provide yield farming for all people throughout the globe. Their goal is to “bring farming to everyone,” and to that end, they wish to make yield farming more accessible.
So the issue is: What distinguishing qualities does YFV have? Yes, it does. The YFV token gives its owners the ability to vote on how to regulate the referral system and supply rate. The whole token burn process is automated and takes place on-chain. YFV tokens have a maximum supply limit of 15,750,000.
Moreover, “insurance” is included in YFValue’s goal. The intention is to engage and integrate an insurance protocol, such as Nexus Mutual, to further decrease risk on behalf of all YFV stakeholders using “an insurance treasury through contributions of the YFV team and community funds.”
Yearn Finance Link (YFL)
August 7, 2020, saw the announcement of Yearn Finance Link, also known by its ticker symbol YFL. The message was published on Medium. It is an altered form of the tokens from YFI.
To benefit Chainlink backers more, the project hopes to make greater use of the DeFi-backed governance token. It must have previously occurred to you that the Chainlink community was the source of this project.
To make Andre Cronje’s YFI project stackable, the YFL development team forked and modified it. Later on, they also gave LINK holders an introduction to the idea of yield farming. There is a restriction on the maximum supply of 85,000. YF Link is often referred to by analysts as the intermediary between ChainLink and Yearn Finance.
To quickly illustrate, you may obtain BPT tokens by depositing LINK and YFLINK tokens into a Balancer pool. The YFLINK pool may then be used to stake those BPT tokens. This implies that you can get BPT from the Balancer pool and YFLINK from the YFLINK pool. Additionally, Yearn Finance Link offers five distinct pools, each with special setups to boost yield.
Concluding the Annual Financial World
It’s intriguing how many Yearn Finance clones are emerging to meet the many demands that yielders might have. But, this has led to a new wave of cryptocurrency frauds in which con artists immediately produce a fresh Yearn Finance clone with marginally altered regulations. We’re witnessing a similar cryptocurrency frenzy to that of the ICO bubble. Individuals invest heedlessly in those produce farming endeavors, anticipating substantial profits. Yield farming, however, has proven to be a strong argument for DeFi and has even created enough momentum for the cryptocurrency markets to turn negative momentum into positive momentum.
Although at first it was intended for YFI tokens to have no value, that is no longer the case. This is evident from the growing costs of YFI and its imitations.