Yearn.Finance has been regarded as one of the fastest growing DeFi projects in the market. Yearn.Finance recently rebranded from iEarn with the developing team launching many new products including the token YFI. The cryptocurrency established its all-time high at a staggering price of $93,435. The price subsequently fell given the brutal market corrections but Yearn.Finance appears to be recovering back as the crypto market turns bullish.
The cryptocurrency had been going uphill since July but now a consolidation period appears to have been started with the price level staying near-stagnant. However, the weekly performance has been up by 8%. At the time of publication, YFI token stands at a price level of $39,343. The current price is down by 57% from the ATH but the future potential of the decentralized finance sector may indicate the loss of 57% to soon be reversed.
What is Yearn.Finance?
Yearn.Finance is essentially an aggregator service provider for DeFi investors. The protocol enables investors to maximize their profits from yield farming. Moreover, it is also making the DeFi space accessible to the masses as it removes the technicalities involved in yield farming. The service is done through employment of smart contracts on Ethereum’s blockchain. Users can utilize the YFI contracts as well as contracts of other exchanges on the protocol like Curve and Balancer to be deployed on Ethereum.
The major services of Yearn.Finance are Earn, ZAP and APY. These enable users to lend or trade cryptocurrencies. Through Earn, users can get the best interest rates offered by lending projects like Aave. Users deposit an accepted stablecoin to access the best interest rate searched up by the protocol. Zap allows cryptocurrency trade to be executed in one step instead of going to multiple platforms. Lastly, APY – annual percentage yield – together with Earn shows users the approximate interest rate they have to pay or receive in accordance with their activities.
What is the future of YFI?
The decentralized finance sector has been one of the best performing in the market. Yearn.Finance is a sought-after project given its phenomenal growth after its launch. The strong fundamentals of the project together with positive technical give YFI a positive future outlook.
According to the estimates of Wallet Investor, Yearn.Finance is expected to be trading at $57,878 after a year while the price will skyrocket towards $140,937 in five years’ time. Digital Coin Price is also bullish on the cryptocurrency. Their projections estimate YFI will end the year at $59,182 and reach towards $141,181 by 2026.
