The Ultimate Guide to Trading yearn.finance With eToro
The newest talk of the DeFi (Decentralized Finance) town, yearn.finance has every crypto investor yearning to know more.
For starters, the YFI is the native digital currency of the yearn.finance protocol. Running on Ethereum protocols, Yearn Finance is a DeFi platform where you can stake and deposit ERC20 Tokens in return of daily interest. This is achieved by allotting the capital to staking pools that offers the best valued returns from across the network.
Already thinking of investing in YFI?
You might be considering of trading yearn.finance at this point but in case you do, just click the button below and this will redirect you to eToro's platform for YFI trading. This will give you a preview on how it looks like and should you decide to go on a trade, all you have to do is click the "Sign up" button on that page to quickly register.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What Makes yearn.finance Different?
Before yearn.finance, users had to go through each protocol to stake independently and are required to master the ins and outs of many projects. By using the yearn.finance platform, users need not go through several DeFi sites to achieve yield farming profits. The yearn.finance platform immediately solves that issue by assimilating several different blockchain protocols. This way, users will only have to stake tokens one time with Yearn to access numerous interest-generating blockchain protocols.
To take full advantage of earnings, the yearn.finance protocol rebalances as yield farming opportunities evolves.
History of Yearn.Finance
Andre Cronje single-handedly developed the technology that powers yearn.finance in 2020. Unlike other DeFi projects that usually got venture funding before developing a protocol, Cronje received no funding, nor he reserved any tokens for himself. In July 2020, yearn.finance introduced its own native cryptocurrency, the YFI.
After experiencing a steady rise in the months that followed, more than $650 million worth of crypto assets are now staked in the yearn.finance platform, becoming one of the most robust in the DeFi sector.
As the native crypto of yearn.finance, YFI is a token that functions like a governance tool that makes it possible for users to choose on which course they want a protocol to head. Since its July 2020 launch, it has become one of the biggest Ethereum-based digital coin in the cryptocurrency industry because of its unique method of focusing its protocols on automated yield-farming strategies.
To simply say; think of YFI as a machine armed with artificial intelligence that always digs out the best yields in the Ethereum DeFi spectrum. The community behind Yearn has adapted a policy setting the maximum cap of YFI to 30,000 coins to avoid inflation. Many users who disagreed with the cap, created a fork now known as the YFII or the DFI.money.
In February of 2021 though, the YFI cap was increased to 36,666.
How Users Earn YFI?
Users earn YFI coins by staking digital currencies in yearn.finance contracts operating on the Curve and Balancer DeFi trading platforms, while of course using the yearn.finance platform.
Capitalizing on "yield farming", a practice where users acquire crypto assets using a DeFi protocol in order to gain increased cryptocurrency value. To say it simply; the more assets users engages in a platform, the more YFI tokens awarded by the protocols.
Features of yearn.finance
Becoming one of the industry leaders didn't happened accidentally for yearn.finance. Credit goes to its robust functionalities and features that is now setting the standard in DeFi industry. Here are some of the appealing features of yearn.finance.
ytrade.finance: This feature makes it possible for users to achieve short and long stable coins with up to 1000x leverage. Shorting digital currencies has long been a fascination among crypto traders. With yearn.finance, this is turned into a reality.
yliquidate.finance: This feature brings in loans in Aave. These loans are used to expedite and liquidate funds whenever necessary.
iborrow.finance: Using the Aave protocol, this feature tokenizes debt. Once minted, the debt can be applied in succeeding DeFi protocols. Following this process, yearn.finance creates fresh liquidity streams for the market.
yswap.exchange: This feature is an important element of the yearn.finance ecosystem and acts as a lone vehicle for users to manually store funds to and from different DeFi protocols.
By the way: Aave is an Open Source and Non-Custodial protocol applied to earning interest on deposits and when borrowing assets.
yearn.finance (YFI) in a Nutshell
yearn.finance is seen by analysts and investors as gateway to a massive collection of yield-generating products in the Ethereum universe.
Following a gain of popularity in 2020, more than $650 million of crypto assets are now being staked in Yearn, all of which stands to gain from a booming return in the thriving DeFi (decentralized finance) industry.
Many observers refer to yearn.finance as the "Intuitive interface to all of DeFi".
Because of its many elements, the yearn.finance platform ecosystem can become a multifaceted system that any beginner crypto investor might find hard to understand.
How to Store YFI
Other than simply keeping your YFI on your eToro portfolio or storing it on an eToro Money Crypto Wallet, you can also store your YFI on a hardware wallet. Hardware wallets are referred to as "cold storage", as these are devices not connected to the internet thus making it impossible for hackers to access it. The popular hardware wallets are the Ledger Nano S and the Ledger Nano X which both supports the YFI.
How to Open a YFI Wallet with eToro?
To use store your YFI on the eToro Money Crypto Wallet, you will need to transfer YFI position via the eToro trading platform under your name to the crypto wallet under the same account. The good news is that you won't incur any fees opening a YFI wallet and transferring the YFI crypto to this wallet.
yearn.finance (YFI) Price
YFI has a current 52-week average of $ which shows its high volatility movement of extreme lows and extreme highs.
1 YFI is with a market cap of during the time you opened this page. Keep in mind that crypto prices are rapidly changing and this may not be the exact value anymore.
Investing on YFI
While it’s an open secret that the cryptocurrency industry is a high volatile market, traders are always hopeful for better yields when all things considered. In YFI's case, the argument for investing on yearn.finance is dependent on its being an industry leader in the DeFi sector. By raising the standards within the DeFi market, expect YFI to gain more popularity and achieve good chances at achieving higher value in the market.
For now, yearn.finance (YFI) remains a very interesting protocol that is creating a different kind of decentralized finance products. The forecast for YFI seems bright as developers work on to improve its ecosystem.
How to Buy YFI?
The simplest and easiest way to buy and trade YFI is to open an account with any exchanges like Binance, Kraken, BitPanda just to name a few and trading brokers that supports YFI. Trading platforms such as eToro is a great place to start since it offers a straightforward interface that allows for a seamless trading by virtue of clicking of a few buttons.
How to Trade YFI on eToro?
On your eToro dashboard, click "Trade Markets".
Scroll down to look for "YFI".
Click "Buy" and set the amount you want to invest.
Click "Open Trade".
Thinking of Trading YFI with eToro?
If you're planning on investing or trading YFI then it would be simpler to click the button below. This will take you to the eToro YFI trading page where you can easily check the current price of YFI and buy YFI of any value you plan to invest.
Before trading YFI on eToro, just simply open an account with them. Don't worry, the whole process will only take a few minutes.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.