Cronje rebranded and relaunched iearn.finance with a bolstered suite of products. The process of yearn.finance’s launch attracted the attention of DeFi enthusiasts from the very start. The value held up in smart contracts has carried a knock-on effect for the values of their associated tokens - and one of the leading beneficiaries of this has been yearn.finance. The value that’s locked up in DeFi smart contracts has exploded in recent months and years from $2.1 million in 2017 to over $6.9 billion today - throughout the month of August 2020 alone over $2.9 billion was added to the total value of these contracts. Decentralised Finance refers to financial services that are brokered using smart contracts, which are automated and enforceable agreements that don’t require intermediaries like banks or lawyers, and instead rely on blockchain technology to ensure both parties are treated fairly. Fundamentally it’s a protocol that diverts liquidity to different areas of the DeFi universe in search of optimum returns.Īlongside yEarn, DeFi itself has grown to attract widespread attention across the world of cryptocurrencies. YEarn operates on DeFi protocols like Curve, Compound, Aave and dYdX to optimise token lending. The use of the Ethereum blockchain alone has prompted some investors to sell Bitcoin to Ethereum in a bid to cash in, but in DeFi yEarn has subsequently grown into an ecosystem of protocols that intends to maximise percentage yields (APY) for its users. Writing for Forbes, Joseph Young notes that there are four significant factors behind the dominance of yearn.finance a unique supply, an active community, a reputable developer, and innovative products.Ĭan these factors alone help to keep yEarn soaring above the likes of Bitcoin and Ethereum? Or will the token’s bubble soon burst? The Rise and Rise of DeFiĪccording to Ivan on Tech, yearn.finance (yEarn) was developed solely by Andre Cronje and stands as a yield aggregating platform operating on the Ethereum blockchain. Within six months of launch, YFI’s market capitalization surpassed $1.1 billion dollars in value.īy the end of August, YFI surpassed a market value of $27,000 - dwarfing the mighty rally that Bitcoin had undertaken in late 2017 and highlighting the power that DeFi projects can hold in comparison to their crypto counterparts. Yearn.finance’s governance token, YFI, has undergone a seismic rally throughout 2020 to establish itself as the second-largest decentralised finance (DeFi) coin on the cryptocurrency market.
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