Yearn Finance: A Credit Protocol That Does Everything By Itself

Yearn Finance: A Credit Protocol That Does Everything By Itself

Automatic movement of assets, high farming yields, decentralized finance — all this is Yearn Finance.

YFI: What Is It And What Are Its Features

Yearn Finance is a DeFi sector credit and financial platform running on the Ethereum blockchain. Yearn Finance switches between various protocols and farming programs autonomously to optimize the user’s investments as much as possible, automatically redistributing his funds.

Yearn Finance token — YFI (ERC-20 standard) — is used to manage platform protocols.

The token is traded on exchanges within approximately the same limits as Bitcoin. The fact is that YFI has a very limited emission of 30,000 tokens.

There was no premining or ICO, and you can earn a token by interacting with the Yearn Finance system.

To encourage new users of the platform, Yearn Finance has issued a YFII token with limited emission of 40,000 tokens.

YFI is currently one of the most noticeable Ethereum-based tokens, the priority of which is Yield Farming.

Yearn Finance: How Does It Work, And Why?

First of all, it is a powerful Ethereum-based DeFi solution that autonomously moves user funds to generate the largest profit between different protocols — Compound, Curve, Aave, etc.

These blockchains are famous for their solutions in the DeFi sector and allow users to take part in farming, staking, and other decentralized financial instruments.

If you compare YFI and other tokens, the Yearn Finance token has better automation and flexibility. In addition, the network charges only a small fee contributed to the platform pool, which is then distributed among the token holders as dividends.

To put it simply, Yearn Finance is a decentralized lending platform, where anyone can place their funds, and its automated system will do everything by itself: it will find the most profitable farming offers among verified protocols to maximize profit.

Yearn Finance Rivals On The DeFi Market

Yearn Finance is not the only one who solved the problem of fast asset relocation between protocols. At least one other solution has achieved significant success in this field.

The Autofarm platform has become a tool similar to Yearn Finance in the MATIC and BSC ecosystems.

Here, all the same algorithms for the automatic redistribution of assets to different programs based on these protocols.

What About Free TON? Broxus Builds Bridges

In the Free TON blockchain, the TON Bridge, a Broxus project in partnership with the Free TON DeFi Alliance, aims to be a similar tool. The Free TON↔Ethereum bridge has already been built, and bridges to other systems are also planned.

With the transition to full DAO mode, large investors will have confidence in the reliability of their investments without control over the protocol from the side. As a result, we can expect large investors and funds in Free TON, the exponential growth of users of the ecosystem.

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