What Is Yearn Finance?
Yearn Finance is a protocol or platform that offers many types of DeFi products and services. When most DeFi platforms are limited with few services, yearn offers almost all the necessary services like a vault, zap, yield, interest, and more. In simple terms, it is like an all-in-one protocol for DeFi users. Let’s learn more from our yearn finance review.
Is Yearn Finance Decentralized?
To answer this question, you have to grasp a good idea about decentralization. As the name says, it is the opposite of centralized finance. Centralized finance is controlled by a single user that is also expanded by multiple steps. All financial steps need an intermediary to complete the task. It takes time and there is a lot of uncertainty.
To prevent this manual financial system, the crypto world has introduced a virtual transaction policy that does not depend on any third-party medium. Using Web 3.0, every financial step is done automatically and the user has total control over the actions. This is what decentralized finance aims for. The sole purpose of it is to reduce the financial difficulties.
Yearn finance provides all the services like zap, yield, which are under the DeFi construction. So, Yearn Finance is a decentralized platform for sure. You will learn more below from our yearn finance review.
Who Created Yearn Finance?
Within a short time, Yearn Finance has already reached eye-catching landmarks with its versatile services and products. As for the foundation, Andre Cronje is the founding member of the platform.
When Did Yearn Finance Start?
Yearn Finance was established in 2020. After a soft start in early 2020, they have reached a decent milestone by August. By the end of November, their tokens have been priced at $23,400. That’s quite a feat of its own in the crypto world. Follow our yearn finance review to learn how it works.
How Does Yearn Finance Work?
Now, our yearn finance guide will help you to learn its working process. The working process is pretty amazing here. Yearn’s financial strategy is one of the finest and smartest technologies in the DeFi. Instead of regular services, Yearn is specialized for yielding. You may be thinking why is it only for yielding! But if you really want to earn a profitable amount in the cryptocurrency world then yielding is the most profitable one.
It allows you to deposit many types of popular ERC 20 tokens, cryptocurrency, and stablecoins like USDC, USDT, DAI, SUSD, and more. The protocol converts them into yearn finance coin that are also known as $YFI token. As expected, you will earn a healthy profit from the YFI token value by lending them to the yearn finance protocol.
The protocol will automatically balance the token’s position to maximize the profit value. Although, the protocol charges a pretty low amount considering such an amazing yielding service.
Yearn Finance Earn Vs Vault
You just need to learn about yearn finance Earn and Vault to realize their similarity and difference. Let us elaborate on the facts below.
Yearn Finance Earn
Earn is a manual and active service where you have to set up everything with the given terms. Here, your given value can earn profit only from dYdX, compound, and AAVE. The service will automatically optimize and shift values among these platforms. It also makes sure to get the highest profit value all the time.
Yearn Finance Vault
Vault is simply an upgraded version of Earn. Not only is it fully automated but also it has large reaching criteria. You can passively earn through vault just by depositing YFI tokens. It will automatically balance the investment for the highest profit. Not to mention, it reduces several gas costs that also helps to improve the overall efficiency of yield farming.
Why Is Yearn Finance Worth So Much?
The reason behind yearn finance’s aggressive success is their optimization. While most DeFi protocols follow regular crypto financial services, yearn finance offers something more. Its automatic distribution and balanced profit management ensure the highest profit from an investment.
Such a versatile YFI token is! It is the best thing to be used in a liquidity pool. Thus, it is like a dream product to the yield farmers as they can earn a healthy amount passively with minimum cost and effort.
These overall facilities place yearn finance much higher than the rest of the protocols. The impressive popularity and the worth surge is the result of their continuous development. Let’s follow the yearn finance guide to learn its safety.
Is Yearn Finance Safe?
This section has a little concern as yearn finance had a reputation of maintaining high security. Besides, it is an automatic web 3.0 application so it has a lot of potential to protect the assets silently.
But, virtual finance always has an unknown vulnerability. As everything here is made of codes, if someone can find a hole and exploit it, a single moment is enough to make everything.
Regarding that, it has recently been attacked and successfully harmed by an outsider. Basically, yearn financial policy is run by a controller program that has some vulnerable holes. Someone successfully able to exploit that command and hacked the vault. Although, they have taken full responsibility and are trying the best to fix the issue.
They have recovered some of the funds and put them back to the Yearn Vault.
Is Yearn Finance A Bubble?
Yes, yearn finance is a bubble. To understand this matter, you have to know about the crypto price bubble. A bubble is a statistical factor when the price of an individual item reaches higher than usual. Although it is not only about usual, it means to reach much higher than regular transaction value. A series of such values create a bubble.
It has an automated mechanism to find out the best possible value for yield farming. Because of getting so much popularity, its value is spiking much higher recently. So, it is creating a bubble pretty often.
Yearn Finance Vault $11M Hack
As you already know, yearn finance protocol is controlled by a coding mechanism known as a controller. Recently, it has been hacked by an unknown hacker who has successfully exploited all the DeFi controller mechanisms. The first attempt took the controller over and vault of $11million.
Although, the protocol has taken action and provides compensation for the loss. But, the funny part is that the latest vault mechanism has also been hacked. The hacker has got the hole in DeFi protocol and hacked 40+ quintillion coins.
But, it looks like the hacker was only enjoying doing so. He even returned the value along with a message saying “Next time, take care of your own shit.” So, there is a safety issue for now until the official announcement of the fixing. Follow our yearn finance guide to learn about prediction and possible investment risks.
Yearn Finance Price Prediction
Because of the versatile yielding system, yfi token is getting a price surge in the crypto market. It is already competing with the top protocols head to head. Such an amazing surge gives you potential investment ideas for the future. But how would you know the possibility?
There are websites like wallet investor that help you to predict the future value. It will ensure your value’s profit and loss. Make sure to check them before every deposit. Follow the yearn finance review to learn if you should invest in it or not.
Is Yearn Finance A Good Investment?
As our yearn finance guide says, the way yearn finance is rising in the market, they may surpass the leading crypto platform with a significant margin. So, investing in yearn finance is the best way to expand your earning.
But, their recent hacking issue is a big concern. Although, it is expected that the issue will be solved pretty soon. Without the hacking factor, yearn finance is one of the best options for yield farming.
Why Did Yearn Finance Go So High?
The impressive high price of yearn finance is because of their automatic mechanism to earn the highest interest. When you invest, the protocol automatically uses your value in different protocols and liquidity pools based on the interest value. It makes sure that you are getting the maximum profit from the market.
Because of the reasons, it provides the highest possibility for yield farmers. It has picked up the interest so high that within 5 months of its launch, it is already at the top of the profit rank. Its price is flawlessly stable over $20,000. There is a chance of surging more than 15-30% soon. Follow our previous discussions in the yearn finance guide to learn their working process more.
Why Is Yearn Finance Dropping?
Even though it is unexpected, the recent hacking issue has provided a big impact on the yearn finance market value. Because of the back to back double hacking issue, it has gone down under $20,000. Even though the price has gone down, it is still staying in the top tier. After fixing the issue, the price is expected to reach much higher than previous records.
What Is YFI token? Is YFI A Cryptocurrency?
When you deposit your crypto value into the yearn finance platform, they give you a yfi token as an exchange value. Yes, YFI is a cryptocurrency-based platform. But, don’t mistake by thinking it is a cryptocurrency buying or selling platform. It deals with your cryptocurrency value and you earn by collecting their token.
Why Is YFI So Expensive?
A YFI token has no value but it is an exchange value for your deposit. For every increasing market price, their share value also increases. Because of the increased share value, every token owner also earns a portion of it. Because of the multi yielding mechanism for exclusive interest-earning, their share value has increased so high.
On the other hand, yearn finance charges are pretty comparing any other yield farming platform. So, you are earning the highest by paying the lowest. So, the high price of the YFI token is as you would expect.
How do I earn YFI with yearn finance?
Earning YFI means getting YFI tokens. There are two possible ways to earn YFI tokens. Let’s have a look at the possible ways of getting YFi tokens.
- The first method is the easiest way. You can deposit different types of acceptable cryptocurrencies or stablecoins and get YFI tokens in exchange.
- The next option is mixing a little amount of YFI tokens with another stable coin like DAI or yCRV and exchanging them with full YFI tokens from Balancer Protocol and Pool.
Where Can I Buy YFI Coins?
According to our yearn finance guide, YFI tokens are not as available as you would expect. It is available on very few platforms. If you want to buy from somewhere. There are two ways to buy YFI coins. Let’s have a look at them.
- Buying without creating an account: A user can buy YFI tokens from Uniswap or Balancer or Sushiswap.
- Buying with an account: A user can buy from Poloniex or CoinEx.
How To Use Yearn Finance?
To use Yearn Finance, you have to learn about their products and services. As you have already learned about the yfi’s popularity, you should learn about its proper usage. Let’s follow our yearn finance review below.
Vault is the most promising and eye-catching product from the yearn protocol. YFI Vault is where you deposit cryptocurrencies or stablecoins and get a yearn token in return. Vault has a mechanism to find out the best possible APR among all the available protocols.
So, it allows you to earn a much higher profit in yield farming. As everything will be done automatically, you are earning passively with the lowest effort. The best advantage of the vault is that there is no protocol limitation in it. So, your earning has no initial limit either. You will get the necessary access from the vault option.
Earn is the product that allows you to lend value to the aggregators like AAVE, dYdX, and compound. The background service will automatically optimize your investment for the highest value. Get it started from the Earn option.
Zap is a product that provides services like zapping in/out. It is especially for the liquidity pool. If you want to learn more detail then follow our zapper.fi review to learn more. In simple terms, it allows you to invest in multiple liquidity pools and get out at any time. Go to the zap menu to use it. It also helps you to maintain the gas bill.
The cover is the insurance that backs you up any of your financial loss in an investment. The possible reason behind a cover is hacking, malfunctioning, bug, or any other issue from the platform. Check out their terms and conditions for a better understanding. The contract is protected by Nexus Mutual. You can check about Nexus Mutual and its facilities from the review.
APY means annual percentage yield. It is basically the interest rate of earning through yield. Even though you don’t have to determine the APR but you have to learn about it while going into the business.
Pros And Cons Of Yearn Finance
Let’s talk about the pros and cons through the yearn finance guide. We have talked about their features and some of the issues. Follow our table below to learn about them.
|Pros Of Yearn Finance||Cons Of Yearn Finance|
|Massive yield farming||Hacking possibility|
|Jump in and out in liquidity pool||Few services|
|Highest APR advantage||Only deals with tokens|
|Maximum profit||Only special for yield farming|
Yearn Finance YFI Governance
Governance is a feature that allows a user to vote. Now you may wonder about the connection between yfi token and voting, let us clarify the matter. Every DeFi protocol or cryptocurrency is a mass of codes and they need continuous improvement. There are many reasons behind the necessity of improvement. Such as adopting the latest technology, improving security, removing bugs, increasing efficiency, preventing hacking, and more.
When a user gets the token, the protocol asks for voting by giving their opinion about any complaint or improvement. This voting is known as governance and you have to do it for yfi tokens. There is also an additional forum to do the same thing. It is a part of the yearn finance governance as well.
How To Store YFI In Crypto Wallets?
If you want to store the yfi token in a wallet then you need a virtual wallet to do so.
There are virtual wallets like
and more. As the yfi token is an ERC 20 token, any ERC 20 acceptable wallet is capable of storing them.
Although the overall storing system is pretty easy. Among these wallets, metamask is the most popular one. Follow our metamask review to learn more about its features and facilities. Let’s have a quick look at the yearn token storing process.
- First, you have to create an account for a crypto exchange.
- Go to the respective platform and create an account.
- verify with necessary documents.
- Get stablecoins or cryptocurrencies from their respective websites. Check the official website for availability.
- Now, go to the metamask website and create an account.
- Verify it with necessary documents and information.
- Connect your metamask wallet with yearn finance account.
- Deposit stable coins and get yfi tokens in return.
- Deposit Them from the funding/transferring option of the yearn finance account.
- Verify the transaction from both yearn and metamask.
- Complete the transfer.
- The process may be a little different depending on the wallet type. But, no need to worry about it. The options are pretty similar.
Yearn Finance Login Process
Whatever we are talking about, you have to get access to the yearn finance platform to experience them. Let’s learn how to log in to the official account. As a reminder, yearn finance does not have any direct login process. It is an automatic yielding platform so all you can do is to connect your wallet.
- Go to the official website of yearn finance.
- You will get an option like a connected wallet in the top-right corner of the page.
- If you don’t have a virtual wallet like metamask then create one. Follow our previous discussion about crypto wallets.
- Follow the connect wallet option and use it.
- Connect your virtual wallet with the yearn finance account.
- Your wallet will be the identification of your place on the platform.
- Complete the connection and confirm the connection with a little transaction.
- It is done and you are connected.
Yearn Finance Yield Farming Process
It is time to talk about the farming process in the yearn finance review. Even though there are a lot of strategies to make a yield farming success, yearn finance changes the whole system. This is one of the major reasons behind its success. For the highest profit, you have to continuously change protocols to find the highest APR.
Doing manually is pretty costly because of the gas charge and time. Even if there is a zap in/out process, it is still time-consuming. Yearn finance has changed these systems into a passive job. When you deposit, the simulation mechanism will automatically run through different protocols and find out the highest profit. It will invest your value into them and make sure you are getting the highest possible APR all the time. Both Vault and Earn follow the same process within their accessible protocols.
Yearn Finance Partnerships
Yearn finance is expanding its partnership very fast. There are many platforms already connected to them and many of them are on the way. Let’s have a look at the list. Here are some of the top yearn finance partners.
Yearn Finance Review
We have discussed yearn finance and its products. Let’s have a quick overview of them for a fast look. Below we will talk about them from a commercial perspective.
Ease Of Use
From a user’s perspective, it is as clean and user-friendly enough. You can get every product and service just from their front page. There is no hassle neither any complicated matter here. Just connect your wallet and start trading financial deals.
As every DeFi protocol handles the deals, everything here is transparent. You will get every public information from different protocols. The virtual world deals run through transparent data for the best possible transaction experience and to prevent any hacking.
Yearn finance also follows the same progress as others and makes their information transparent. You can use them safely without having an anonymous worry.
As you have already known from our introductory part, yearn finance is a DeFi protocol that has decentralization as its main motive. Every transaction here is done automatically without any third party medium or dependent factors.
So, it is a decentralized protocol that does every transaction separately. This progress also makes the high yielding and liquidity pool possible.
In terms of performance, it is one of the best. From the market progress, you should be cleared enough to know that. It is going through an immense surge in the market because of the performance.
It is fast, less costly, and does everything passively to earn you the best crypto profits. It is arguably the shortest path to earn the highest profit. The performance is speaking of itself in the market. It has already become one of the best choices for yield farmers.
Probably this is the only section you should be concerned about right now. Follow our previous safety review to get a clear idea about what is going on. In the short term, the security was good until the recent hacking issue. Someone has exploited its background code and took advantage of it. At least you would be happy to know that the hacker is not interested in the tokens. He just wanted to have some fun.
Yearn Finance V1 Vs Yearn Finance V2
Yearn finance has been working with their V1 or version 1. It had some problems like rigidity and other issues. V2 has improved them. Let’s get the idea from the table below.
|Yearn Finance V1||Yearn Finance V2|
|Multiple services like zap, vault, earn, governance, and more.||Major services are yVault, Controller, Strategies|
|It is rigid||Non-rigid|
|It can not allow new lender with higher APR||It allows any lender at any time|
|It has some manual functionality||Properly automated|
|Efficient than most of the yielding protocols||More efficient than V1|
|Present functionality||Improved mechanism for future|
Yearn Finance Alternatives
As you want to know the market, yearn finance is not the only protocol to give such an advantage. There are some alternatives as well. We will introduce you to them. Follow below.
It is a network that allows you different cryptocurrency deals as well as earning APR from crypto investment. BlockFi helps you get 6% on your BTC and 6.
Nebeus is another platform that offers all the common crypto transactions along with investment to earn interest just like yearn finance. Follow our Nebeus review to learn more about it.
Aave is a liquidity offering protocol and helps you borrow against your crypto. They are famous for their flash loans where you can get a loan and return within the same block. You can invest and earn interest. Check out their official website and review to learn about the APR and other facilities.
Nexo is one of the biggest platforms to lend, exchange, borrow crypto assets. It is a great alternative to yearn finance. Check out their official website to learn more.
YouHodler is rather a popular one although there are more options to go for. It offers regular crypto services along with investment that pays good interest. Check them out in the review.
Yearn Finance Social Media Handles
Yearn Finance is pretty active on all the social media platforms like Twitter, Reddit, Telegram, and more. Their founder is not active on social media. Yearn’s massive success in a short time has also created a lot of their competitors in the market.
On top of that, their hacking incident has created quite a commotion. Although, you will get regular updates from their official pages and websites. Let’s have a quick look at the summary below of our yearn finance review.
Takeaway – Yearn Finance Review
The yearn finance is one of the most leading crypto yielding platforms. Within a short time, it has taken over the market and lots of competitors. It provides products like zap, vault, earn, covers, and more. Liquidity pools and yield farming are their only services. They control gas costs and other stuff as efficiently as possible.
For an even better user experience, they are constantly improving. As a result, a new version is known as yearn finance V2 is officially coming. Although, they have some issues with recent hacking, it is expected to be fixed.
But, this hack incident is not enough to stop them in the market. Even after such an incident, their market share is rising sky-high. So, with a little concern, they are one of the best protocols to invest crypto value for the highest APR earning. So, keep a keen eye on them and follow our yearn finance guide to start your investment today.
Head over to Yearn.Finance website to learn more of their offerings.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates