Review on Yearfi Finance by Saparov Meylis

Yield Farming is a popular method for cryptocurrency owners to generate passive income. It includes the use of various incentive rewards for blocking (or betting) various cryptocurrencies. This article focuses on farming the crop for the $ YFI token, which has become the most efficient farming pool.

The yEarn project launched its own governance token - $ YFI - on July 17, 2020, leading to a frenzied decentralized finance (DeFi) scene for Yield Farming. Placing stablecoins (USDT, USDC, DAI or TUSD) in pool Y will yield an astronomical 896% Annual Percentage Yield (APY).

This is because the $ YFI incentive token is shared among token holders, making it the single best farming pool at the moment. This generated huge interest in both searches for the $ YFI governance token. Since the launch of the token, over $ 60 million of new capital has been deposited into the Y-pool in a week.

The iEarn "Y" pool is a yield aggregator - it automatically invests its capital in various DeFi projects - selecting the projects with the highest yield and ROI.

Like the DeFi protocol, the smart contract holds back the investment, which makes the project non-storage-related. The pool itself consists of 4 different stablecoins - USDT, USDC, DAI and TUSD - with foreign exchange reserves totaling over USD 103 million (assets under management - AUM). These reserves are then passed on to various protocols that offer the best rates of return, including Compound, Aave, and dYdX.

yPools are considered to be more dangerous than other DeFi products like Compound as they provide capital for a number of protocols that may themselves be vulnerable.

How to earn YFI token?

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There are two pools that reward the YFI token per stake. The first and easiest access to the pool is the Y Pool at Curve.Fi.

This pool is a collection of stablecoins that are automatically invested in various lending protocols. This type of pool is generally considered a higher risk due to possible vulnerabilities not only with its own smart contract, but also with other smart contracts.

YFI is the yEarn control token (formerly known as iEarn). Token holders have the right to vote on upcoming network governance decisions, such as possibly ending a completely new token distribution. YFI creator André Cronje (@AndreCronjeTech) stated that the token has no intrinsic value.

The token follows the Governance model, where its value comes from voting about where the protocol will go.

In addition, the Balancer Incentive Pool (YFI 2%, DAI 98%) requires a $ YFI package, which blocks further supply.