What is Yearn Finance? How to Exchange YFI at the Best Price?

The past two years, in particular, have been tremendous for the DeFi world and DeFi protocols as many new projects surfaced to become a great success. The reason behind that is that they are bringing ease to their users through smart contracts and other vitalities. This all-encompassing ecosystem encouraged the creation of a whole DeFi scheme known as yield farming.

With yield farming, the environment of earning lucrative interest on the trading of tokens and coins became more common. The whole system was appreciated by all those users who found active and speculative trading a bit risky and found their peace in passive earning through various DeFi protocols. However, when the system was new, there were huge ups and downs in prices of tokens, which in turn brought instability. To solve that, platforms like Yearn Finance came into being.

What is Yearn Finance?

Yearn Finance is a bundle of Decentralized Finance protocols that run on the Ethereum blockchain. Launched by an independent developer Andre Cronje in 2020, Yearn Finance works on the single goal of equipping its users with the right platform to earn huge rewards on their token holdings. It amalgamates various services, including lending aggregation, yield generation, and insurance on the Ethereum blockchain. Thus, ensuring more usability and feasibility for the users. The YFI crypto holdings from these users add more stability to the platform.

YFI is the native crypto of the project. It is a governance token that entitles its holders with the right to vote to decide the platform's fate. Yearn Finance focuses on providing you with the best yield farming options available on the Ethereum blockchain. Meanwhile, it also grants you the power to have a say in the decision-making process.

Key features of Yearn Finance

The protocol consists of a number of different decentralized products. Here are some of the main features of the protocol:

A tabulated data shows interest rates for different lending protocols

APY stands for Annual Percentage Yield. It represents interest rates across different lending protocols and calculates a time-based measurement of the Return on investment for an asset.

The main feature of the platform is the vaults

Through vaults, Yearn Finance presents their users with different investment strategies that would produce maximum earnings. Yearn vaults are programmed to provide the best lending aggregator and optimized yield farms.

Earn is the yearn’s first product

A type of lending aggregator, Earn, automatically shifts funds between different areas such as the dYdX, AAVE, and Compound when there is a change in the interest rates of these protocols to make sure you earn the highest margins.

Zap gives you frictionless swaps

The Zap section allows its users to perform several trades with one click saving their money and time and cutting down on gas fees. Another benefit of this protocol is that it provides an insight into the users' Defi investments and assets.

How does Yearn Finance work?

Yearn Finance works by deploying contracts to the Ethereum blockchain and various decentralized exchanges running on it. In Yearn Finance, users earn most of their profits through yield farming. They lock their assets on the blockchain, increasing its value and strengthening it.

In addition to that, the major services offered by Yearn finance, such as the APY, ZAP, and Earn, entitles its users to earn through trading and lending crypto assets. For example, Earn allows you to find the best rates across different protocols available. Furthermore, it explores different lending protocols such as Compound and Aave to find the ones that are currently offering the best interests. However, the ratio of your earnings depends upon the amount of yearn crypto stored on the protocol.

How to use Yearn Finance?

Yearn Finance has developed a secure ecosystem for users to earn through lending, trading, investing, and holding tokens. They can take full advantage of all the protocols offered and the YFI token that they can farm by providing liquidity to the network and depositing capital into different yearn protocols. The launch of YFI is being accredited as the fairest launch since Bitcoin.

YFI token

As discussed earlier, the YFI token is an ERC-20 token that governs the platform and used as a user reward. It was launched with a fixed supply of about 30,000. However, it is possible to increase the coin supply with the consent of the community members. It had no pre-mined tokens at the time of its launch. It can also be assumed that its price has the potential to go up because of its limited supply.

How to swap YFI tokens on Swapzone?

Swapzone is a credible platform that offers thousands of crypto pairs to exchange those crypto assets you own into other currencies. With its user-friendly interface, any user can convert any crypto token in a matter of a few clicks. Many users question how to convert other cryptos, like Bitcoin to YFI. They can do so on Swapzone by following these below-mentioned steps.

  1. Go to Swapzone.io to get your work started.
  2. Select a crypto token or a coin, i.e. BTC, in the Send section.
  3. Specify the total amount you are going to transfer.
  4. Select YFI in the Get Up To section.
  5. Review the offers on the screen. You will find multiple offers with the best rate listed at the top. You can also see how many minutes it would take for you to complete the exchange.
  6. Confirm the offer you wish to proceed with and then enter the YFI wallet address.
  7. Send your crypto coins to the generated address.
  8. Wait for the deposit to be processed by the exchange service and the exchange to be done.
  9. Do not forget to rate the exchange partner, so we can gather more information on the exchanges for future users.

If you’re a visual learner, see how to exchange your BTC to YFI tokens in one of our step-by-step video tutorials: