- Altcoins are performing brilliantly in the market, with values skyrocketing.
- Yearn.finance’s token YFN reached an astonishing high of $90,000 in the early hours today.
- The crypto asset management platform has recovered from its earlier business issues and looks set to dominate the market.
- Yearn.finance is performing strongly in the YFN/USD and YFN/BTC exchange pairs as more money flows into its platform.
The rise in the value of decentralized finance solutions has reached Yearn.finance, with its native token YFI surging in recent weeks. The price rose above the $90,000 mark, recovering from poor months in the past.
Earlier this week, the asset traded high, with the YFI/USD pair trading at over $68,000 and the YFI/USD trading at 1.192 BTC. Though Yearn has been weaker than other assets this year, it joined the highest gainers this week as popular assets like Dogecoin, Bitcoin, Litecoin, and Polkadot struggled. The additional inflow of collateral is primary to the recent surge in the price of Yearn.
What is Yearn.finance?
Yearn.finance is a DeFi solution that allows users to enjoy an advanced way of managing their cryptocurrency and digital assets to make a profit through trading and lending. Yearn.finance has proven to be a high-yield farming platform.
Operating on the Ethereum blockchain, Yearn.finance eliminates the need for intermediaries and uses codes and smart contracts to make the process seamless and provide incentives.
Users earn YFI tokens by locking up their cryptocurrency in Yearn.finance contracts which run on the Balancer and Curve trading platforms. The more assets users lock on the platform, the more YFI tokens they get as yield. Yearn.finance operates with several protocols to give its users the best liquidity, providing an avenue for them to earn more cryptocurrency.
On the Flipside
- Yearn.finance will suffer in the market if users reduce locked-up assets as a result of a bearish market in the future.
- With lots of competition and increased annual percentage yield, APY.Finance may make users switch to other platforms.
Recent Developments And The Reasons For The Spike
Yearn.finance has been struggling in the past months for reasons that ran deep into its inflow of liquidity. The major problem was a lack of funding as there were no reserves, which limited it from gaining exposure.
The creator of Yearn.finance even went so far as expressing his displeasure through a blog titled, “Building DeFi sucks.” In recent weeks the community-initiated and passed two proposals that have turned the tide. The “buy-back and build program” made more YFI available for redistribution and the second proposal, “Build Yearn’s Future,” led to the minting of 6,666 YFI tokens to fund more contributors.
Another reason for the rise in its value is the upgrade to Yearn v2 following numerous criticisms of the previous version. Yearn v2 offers users multi-strategy vaults, a new fee structure, and a new partnership with Cream. Frax Finance has also added its stablecoin to the Yearn platform.
As a result of these events, the collateral locked on Yield.finance’s platform has more than doubled since April, to over $4 billion. The future of Yearn.finance looks very bright, as the community seems determined to strengthen its platform, thereby attracting more locked collateral.