What is this currency yfi (what is yfi)

08/12/2023 23:30 • Blockchain Buzz • 83 views

What is this currency yfi? Editor’s note: This article is from the blockchain vernacular (ID: hellobtc), author: Wu Huoqiu, authorized by Odaily Planet Daily.

What is this currency DeFi for? YFI is a decentralized lending and stable asset protocol that generates income and liquidity through collateralizing encrypted cryptocurrency assets. YFI has two tokens, one called yUSDT and the other called YFII, representing liquidity provided by users and storing ETH assets, and can also be used to purchase other tokens such as USDC/DAI.

This currency yfi is mainly used for mining. Currently, there are already platforms such as Compound, Uniswap, and Yearn that have launched yToken mining activities. However, due to a recent significant change in the DeFi market, it can be seen as an “air” project. Many people believe that there is a huge bubble problem in the DeFi industry.

However, in the development process of the entire DeFi field, people have found that many projects have not completely solved these problems, and some even do not meet the needs of the traditional financial system, causing many investors to choose to exit the DeFi ecosystem to seek returns. Other counterfeit currencies have not been able to enter as they are not mature or compliant, so they cannot be invested in in the long term. But with more and more users entering this industry, this situation will improve and have a certain impact on the existing market. Early participants of these projects often find it difficult to profit, which surprises some early investors, especially those in the 2017 DeFi boom, as it has been proven that project transparency is unreliable.

Now there is indeed a phenomenon in the DeFi field: many early investors may not have sufficient investment return rates to hold or fully utilize their risk tolerance. But if they see the huge potential of the future DeFi market and want to invest their funds into DeFi projects, it will definitely attract the attention of some institutional investors.

And when we return to DeFi, you will find that many new friends have started looking for various investment methods. For example, you can trade on a certain Dex and exchange your coins for yfvsydq, etc. If you think you can make money, you can consider using yusd to earn interest and rewards, but at the same time, you don’t want to take on all these risks, so you buy various products in various Dex, and finally, all the money in your wallet is the money you want, and you use this money to buy some other products, so that you can make a certain profit.

The costs involved here are quite high. In addition to ordinary retail operations, many project teams are not familiar with this field, so they basically do not directly contact community members but focus on contributing to this community.

What is yfi currency?

What is yfi currency? It is a decentralized lending product based on the Ethereum network launched by the DeFi protocol. The project code name is YFI, which will allow users to automatically receive yUSD stability fee income through smart contracts. It has already been traded on platforms such as Uniswap and AAVE, with a market value of 10 million USD, making it one of the most popular decentralized finance projects currently.

The founder of yearn.finance, Andre Cronje, once said, “We believe that in the next 10 years, the entire industry will have a decentralized money pool, where users can deposit funds for liquidity mining by other participants.”

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What is this currency yfi (what is yfi)

What is yfi currency?

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