Crypto Spotlight: YFI
YFI has recently joined the Wirex app. As it’s quite a new cryptocurrency, you may not be aware of it. So, here’s a little profile on YFI and what it’s all about.
What is YFI?
YFI is an ERC20 cryptocurrency that runs on the Ethereum blockchain. It powers the Yearn Finance platform, a cutting-edge decentralised yield generator.
Who created YFI?
YFI was created by independent developer Andre Cronje in 2020.
What does it do?
Yearn Finance is a decentralised asset management platform that provides a suite of products ranging from liquidity aggregation, yield generation, lending, to insurance on the Ethereum blockchain. The protocol is maintained by various independent developers and is governed by YFI token holders as a Decentralised Autonomous Organization.
YFI deploys contracts to the Ethereum blockchain, as well as on other decentralised exchanges like Balancer and Curve.
You can get YFI tokens through locking cryptocurrencies via its contracts on Balancer and Curve. From there, you’ll have the ability to vote on proposals that’ll influence user rules on Yearn Finance. A proposal needs over 50% of votes to be implemented into the code.
What makes it unique?
What makes YFI different to other DeFi projects is that it provides services only through code. Therefore, it doesn’t need a financial intermediary, such as a bank. Moreover, YFI’s protocol didn’t receive any funding, whereas other DeFi projects tend to earn venture funds before developing the protocol.