Yearn Finance

What is Yearn Finance (YFI)?

Yearn Finance (YFI) is a service aggregator for decentralized finance (DeFi) with the goal of streamlining the process and lowering the barrier of entry for new investors to get into yield farming. They utilize automation tools to help them maximize yield farming profits for their user base. 

Launched in February 2020, the platform aims to simplify the complex DeFi space for investors who are not technically inclined or prefer less commitment than serious traders.

Its success can be directly attributed to its hyper-focus on making yield farming as accessible to new users as much as possible, which generated a lot of positive press for the project. 

Major exchanges that have the current YFI price for trade are Binance, OKX and Huobi Global, and Uniswap. 

Who Founded Yearn Finance?

Yearn Finance was founded by Andre Cronje, who has an extensive background in cryptocurrency and is particularly associated with DeFi. Aside from that, Cronje also holds a position at Fantom, a smart contract ecosystem.

He also is working on CryptoBriefing, a resource dedicated to ICOs and crypto media. Cronje’s positions at these companies have allowed him to gain valuable experience in the field of blockchain technology. 

What makes Yearn Finance Unique?

Yearn Finance is unique because it streamlines DeFi investments and activities, for new investors, and lowers the barrier of entry for the less tech-savvy user. The platform employs various custom tools as an aggregator for DeFi protocols like Curve, Compound, and Aave, offering the highest possible yield to those who stake cryptocurrency.

Yearn Finance profits from withdrawal fees and gas subsidization fees, but these can be changed by consensus due to its governance model.

Yearn Finance Pros and Cons

Pros:

• Simplifies DeFi investments and activities for non-technical investors.
• Aggregates protocols like Curve, Compound, and Aave to provide the highest yield.
• Continuously adds new features to maintain long-term value.

Cons:

• The contract's code is not open source.
• Mint functions are found on multiple contracts.

Yearn Finance Review

Yearn Finance is an innovative project that simplifies DeFi investments and lowers the barrier of entry to new investors in the space. By aggregating various DeFi protocols, it offers the highest possible yield to users who stake cryptocurrency.

The platform's continuous introduction of new features helps maintain its long-term value, making it an attractive option for investors who are not technically inclined or want to optimize their returns in the DeFi space.

Nonetheless, we've found several issues in our review of the project. One of the critical risks we've found is that the code is not open source. This means independent research by validators and individuals cannot verify the integrity of the code, which greatly increases the risk of the code potentially containing malware.

We've also found several contracts containing mint functions which can be a potential point of risk. This means that the ones who have control of the contract can mint tokens at will. 

This is why it is paramount to do your own research. Be aware of the potential risks associated with projects before committing to any investment.

Is Yearn Finance a Scam?

Yearn Finance doesn't seem like it's a scam. The platform is still getting constant updates and the project has experienced significant growth since its launch along with its community. The founder, Andre Cronje, is a well-known figure in the DeFi and cryptocurrency space and is always active in taking suggestions on how to improve the project.

However, Yearn Finance's price will be impossible to predict as with any market. Potential investors should conduct thorough research and understand the associated risks before participating in the DeFi ecosystem. 

Related Pages

If this article caught your attention, you might want to check out Ethereum Name Service (ENS) - which aims to streamline the process of converting human-readable Ethereum addresses into machine-readable alphanumeric codes used by wallets.

You might find also find interest in our security analysis review on GALA, the core utility token for Gala Games, a gaming platform that aims to bring value to players through Web3 and blockchain technology.

To explore other tokens we've reviewed, click here.