The PENGU Spot ETF is the first NFT-based crypto ETF application, as Canary Capital aims to merge NFTs and DeFi—will the SEC approve this groundbreaking move

January 2024 marked a pivotal point in the crypto industry: the US Securities and Exchange Commission (SEC) approved a bunch of 

 (ETFs) after a decade of resisting it. Later that year, several Ethereum (ETH) Spot ETFs were also approved. These early successes encouraged investment funds focused on digital assets to seek approvals for other 

 (AVAX) and other high-cap cryptos have ended up on the SEC's desk in recent months.

Until Mar 20, 2025, one thing had never occurred: an 

-based crypto ETF application. Such a move was thought to border on impossibility, given how stringently and at length the SEC evaluated ETF applications even for established fungible cryptos. And yet, the Canary Capital investment manager submitted an application to the SEC for approval of the first NFT-focused crypto ETF product, the PENGU Spot ETF, triggering a mini-revolution in the emerging space at the junction of crypto and traditional finance.

If approved, this ETF will be the first of its kind in the industry, based on a mix of 

. Many observers expect Canary Capital to struggle mightily for SEC endorsement of its revolutionary product. Nevertheless, the SEC now has a track record of approving crypto ETFs — which raises hopes for both the altcoin ETFs mentioned above and the PENGU Spot ETF application.

The PENGU Spot ETF is a proposed exchange-traded fund (ETF) product introduced by the Canary Capital investment management firm, and is currently awaiting approval by the SEC. 

 on Mar 20, 2025, making this the first crypto ETF product with an NFT component that’s vying for the approval of America's primary financial regulator. The ETF has been registered in the US state of Delaware.

The Pengu Spot ETF's portfolio is envisioned as consisting primarily of PENGU tokens that will make up anywhere between 80% and 95% of total assets held, with the rest allocated to Pudgy Penguins NFTs. Small portions of Solana's SOL coins and Ethereum's ETH tokens will also be included in order to facilitate transactions and liquidity support, as PENGU tokens are mainly issued on the Solana blockchain, and Pudgy Penguins NFTs are an Ethereum-based collection. 

Since Canary Capital will hold these assets and periodically rebalance the portfolio, gas fee payments on Solana and Ethereum will apply, with fees paid in SOL and ETH, respectively.

Launched in 2021 on Solana, the Pudgy Penguins NFT collection consists of 8,888 items, each depicting a cute penguin with a distinct combination of five different traits. In December 2024, the project introduced a related fungible cryptocurrency, the Ethereum-based PENGU token. As of Apr 2, 2025, PENGU is a smaller-cap asset, ranked 191st in the crypto market, with a total 

 of $319 million. In contrast, Pudgy Penguins are among the leading projects in the NFT space, ranked second among all NFT collections, with a market cap of $155 million.

Canary Capital's application to the SEC is unique in two ways: it’s the first ETF with an NFT component, and it marks the first time ETF approval has been sought for a relatively smaller-cap cryptocurrency, PENGU, which isn’t even among the top 100 crypto assets by market cap. All of the other crypto ETF applications approved by the SEC (or currently vying for approval) are based on high-cap, leading assets that are typically ranked within the top 30.

As of Apr 2, 2025, the SEC has had the application for the PENGU Spot ETF application for just two weeks. The regulator has up to 240 days to review such applications, although historically, the SEC has pondered over crypto ETF applications for years. Now, however, the string of Bitcoin and Ethereum Spot ETF approvals in 2024 raises hopes that newer submissions may be subject to an already established evaluation framework — and thus greenlighted much faster.

At the moment, the SEC is also considering spot ETF applications for several high-cap cryptocurrencies, including Dogecoin, Solana, Polkadot, 

 (XRP). If the regulator decides to approve the applications in batch mode — all or several at once — Canary Capital will have reason to hope that its ETF is included.

However, there's been skepticism regarding the PENGU Spot ETF application, with some analysts believing that its chances might differ from those of the larger, more established altcoin ETFs. This isn't surprising, as a PENGU Spot ETF would be a distinct product, being the first NFT-focused ETF. In addition, NFTs have more limited liquidity than fungible cryptocurrencies. 

NFTs may also be harder to valuate objectively. The prices of fungible cryptos are easily sourced from the crypto market, where supply and demand establish their value. In contrast, the limited liquidity and uniqueness of NFTs makes it much harder to price them efficiently.

Moreover, the PENGU token — which will make up most of the proposed ETF — isn't among the most traded assets in the crypto market. Because PENGU has a modest position in the crypto space (along with its origins as a 

), the SEC could view it with more skepticism than it does the leading altcoins.

Naturally, all these factors are just speculation at this point, and we’ll need to wait on the SEC’s initial comments regarding the first NFT-based ETF under their consideration in order to form a more defined view of the product's prospects for approval.

Current impact of the PENGU Spot ETF application on the crypto market

The news of the PENGU Spot ETF application has so far had no appreciable impact on the price of the PENGU token itself. On the day of the application (Mar 20, 2025), the token was trading at around $0.007. Two weeks later, it's still hovering around the same price. 

On the other hand, there's been a modest increase in the average price of Pudgy Penguins NFTs traded on the market: between March 20 and 28, the average price rose by 16% from around $16,450 to $19,120, though it has since retraced slightly to $17,490 as of Apr 2.

Given the modest price effect, investors are likely still cautious about the chances for the PENGU Spot ETF's approval.

However, if it is approved, the broader impact on the crypto market could be far-reaching, as such a step would signify the SEC's openness to both NFT-based ETFs, and ETFs made up of smaller-cap cryptocurrencies, including meme coins. The number of tokenized asset funds that offer NFT-based products would then be likely to increase significantly, facilitating mainstream NFT adoption within traditional financial markets.

An SEC approval of the PENGU Spot ETF may lead to a flurry of further ETF applications based on NFTs in some form. This could even include the first ETFs composed entirely of NFTs. Other crypto asset types — e.g., 

 (RWAs) — may also become candidates for the SEC’s consideration. Furthermore, in the unlikely event that Canary Capital’s PENGU Spot ETF were to be approved ahead of the altcoin spot ETFs currently in the SEC’s pipeline, it would send a very strong signal that those ETF applications are also a sure bet.

The current PENGU Spot ETF application is a pioneering event that may open up opportunities for NFT ETFs and other crypto ETFs based on partial NFT holdings. Although the SEC approved multiple Bitcoin Spot ETFs in early 2024, few people expected an NFT-based ETF to emerge so soon afterward. Probably even fewer expected a meme coin–based ETF to be taken seriously by the SEC. Unique in so many ways, the PENGU ETF flips the entire concept of traditional ETFs on its head.

Canary Capital's attempt to get approval for an NFT-backed ETF is truly a bold undertaking, though observers said the same thing about 

 just a few years ago. Someone needed to become a trailblazer in this area — and Canary Capital has taken up the noble role without hesitation. Now, all eyes are on the SEC as it prepares to weigh in on a product it has never before encountered.

Intermediate

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PENGU Spot ETF: A bold move for NFT investing — or just hype?

In this article, we break down what to expect from Liberation Day and how it could shape the outlook for equities, the US economy and crypto markets.

 April 2, 2025 as "Liberation Day" — a moment he claims will restore America's trade fairness through sweeping reciprocal tariffs. With few concrete details confirmed, global markets remain on edge. Investors are bracing for the economic fallout of a potential trade war, and crypto traders are watching closely to assess the impact on digital assets. In this article, we break down what to expect from “Liberation Day” and how it could shape the outlook for equities, the US economy and crypto markets.

Since returning to the White House in January 2025, President Trump has prioritized reshaping US trade policy with a renewed focus on tariffs. His administration has already announced 

 on all steel and aluminum imports. Many of these actions take effect this week, coinciding with his so-called Liberation Day.

Trump argues that tariffs are a necessary tool to reduce the US trade deficit and force foreign nations to stop what he calls "economic warfare" against the American worker. Treasury secretary Scott Bessent 

 countries with persistent trade surpluses — dubbed the 

 — as primary targets for reciprocal tariffs. These include China, the EU, Canada and Mexico.

However, critics point to the growing risk of a global trade war, with multiple partners already threatening or initiating retaliatory measures. Goldman Sachs recently 

, citing declining business confidence and mounting economic uncertainty. The tariffs, designed to protect US industries, could instead raise prices and weigh on consumer spending.

What to expect from Trump's ‘Liberation Day’ announcement

Trump is expected to reveal his tariff plans in a Rose Garden press conference on April 2. White House press secretary Karoline Leavitt 

 that the president would impose tariffs on "any country that has treated the American people unfairly" — though no nation-specific exemptions have been confirmed. Trump has promised these reciprocal tariffs will be 

While final details remain under wraps, proposals have included both country-wide and sector-specific tariffs. These could range from uniform, percentage-based levies to targeted charges on industries like pharmaceuticals, semiconductors and autos. Trump's advisers, including Trump trade adviser Peter Navarro and commerce secretary Howard Lutnick, claim the new tariffs could generate over $600 billion annually — though many economists dispute this figure.

Delayed tariffs on Canadian and Mexican imports, 

 in early March, are also set to take effect this week. These include taxes on agricultural products, energy goods and automotive components. Trump has also 

 a 25% tariff on imports from countries that purchase oil or gas from Venezuela.

Given the administration's conflicting signals in recent weeks, there's a wide range of potential outcomes. Whether “Liberation Day” ushers in immediate enforcement, additional delays or future negotiation rounds remains to be seen. For now, uncertainty reigns.

Potential impact on the US economy and global markets

Economists warn that broad-based tariffs could lead to slower US growth, higher consumer prices and widening inequality. Goldman Sachs now 

 Trump's trade policies to reduce annual GDP growth to 1.5% from 2%, while the odds of a recession are being raised from 20% to 35%.

Global equity markets have already shown signs of stress. European and Asian indices dipped ahead of “Liberation Day,” while the S&P 500 and Nasdaq-100 

 in March (respectively). Auto manufacturers, tech firms and retailers could be especially vulnerable if tariffs disrupt global supply chains.

There's also the question of the Federal Reserve's response. With inflation risks rising, policymakers may hold off on anticipated rate cuts, further complicating the economic outlook heading into Q2.

How will ‘Liberation Day’ affect the crypto industry?

Crypto markets have mirrored broader risk sentiment over the past quarter, with investors reducing exposure amid macroeconomic turbulence. As of April 1, the 

 is down 16.9% year-to-date. Bitcoin has fallen 10.48%, Ethereum 44.2% and Solana 33% — despite reaching new highs in January on hopes for pro-crypto policies from the Trump administration.

Investor optimism has since cooled as recession risks, inflation concerns and policy unpredictability drive a risk-off mood. Bitcoin dipped to $81,656 over the weekend, marking its weakest Q1 since 2018. Traders remain cautious ahead of “Liberation Day,” awaiting clarity before opening new positions.

“Liberation Day” could further weigh on crypto prices if market volatility increases and capital rotates out of risk assets. However, some analysts believe any resulting sell-off may offer an opportunity to 

 — especially if Trump follows through on crypto-friendly regulation later this year. For now, though, many eyes are on April 2.

With details still unknown, the crypto market remains in a "wait-and-see" phase. “Liberation Day” could mark a turning point — for better or worse — depending upon the scope and execution of Trump's tariff agenda.

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Trump's 'Liberation Day': What it means for crypto markets

Grayscale has filed to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). 

Daily top performer — Compound Finance (COMP)

The S&P 500 rose 0.38% as investors awaited new tariffs amid weak factory data and declining job openings. Gold eased to $3,113 after hitting a record high, driven by profit-taking ahead of Trump's tariff announcement, but remains strong due to safe-haven demand and economic uncertainties. The Coindesk Indices, which tracks the broader crypto market, are up by 1.30%, with Bitcoin and Ether are up 3.10% and 5.19%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is COMP, up 14.3%, following the proposal for the creation of a foundation to ensure consistent leadership and coordination by Compound.

Compound Finance (COMP), launched in September 2018, is a DeFi lending platform that allows users to earn interest on crypto assets. Built on smart contracts, it adjusts interest rates based on supply and demand, connecting lenders and borrowers without intermediaries. In June 2020, Compound decentralized with the launch of COMP and full governance transfer. However, it lacks a core operational pillar. With Compound v4 development and increased community engagement, the need for consistent leadership has grown. To address this, Compound Labs 

 creating a Compound Foundation for structure, clarity, and coordination, similar to other ecosystems like Uniswap.

Check out the latest prices, charts, and data of 

 to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). The fund, which currently holds 79.4% Bitcoin and 10.69% Ethereum, has grown by 478.83% since its launch in 2018. The conversion would allow everyday investors to access the crypto market, covering about 75% of the digital asset market cap. If successful, it would eliminate the current barrier that restricts access to accredited investors. The filing is still in progress, with management fees and other details pending.

Yesterday, BTC spot ETF had a total outflow of $157.8 million, with GBTC seeing a loss of $10.1 million and non-GBTC products losing $147.7 million.

 that its airdrop might be approaching, with a claim page now live. Registration for the airdrop runs from April 2 to April 17, and claims are expected to open on April 22. However, nothing has been officially confirmed yet. Stay tuned for updates.

Beginner

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Grayscale files to convert digital large cap fund into publicly accessible crypto ETF

In this guide, we'll dive into how to trade crypto with the Bybit app, a convenient and feature-rich platform. Explore spot and derivatives trading for beginners on the Bybit app.

Welcome to our step-by-step guide on trading using the Bybit app. In this article, we’ll walk you through everything you need to know — from downloading the app and setting up your account to executing spot, margin and derivatives trades. Bybit is a leading cryptocurrency exchange that offers a fully localized and user-friendly mobile experience, making it easy for both beginning and seasoned traders to manage their investments seamlessly.

First, download the Bybit app from the App Store (iOS) or Google Play (Android). Once you’ve installed the app, open it and select your preferred language.

 and register using your email address or phone number. Complete the verification process by submitting your mainland Chinese ID or passport as required. This step is crucial to ensure your account is secure, and to unlock higher withdrawal limits.

After verifying your identity, head over to the 

 tab to fund your account. You can directly deposit cryptocurrencies like BTC or USDT. Our 

 (UTA) streamlines fund management, allowing you to trade seamlessly across different markets without the hassle of multiple wallets.

Spot trading with Bybit lets you buy or sell cryptocurrencies at current market prices with immediate settlement.

To begin, log in to the app and tap on the 

Choose your desired trading pair, such as BTC/USDC or ETH/USDT, from the list.

 lets you specify a price at which you want to buy or sell. 

Enter the amount you wish to trade, review the details and confirm your order.

Once your order is executed, monitor its status in the 

Bybit has an intuitive interface that displays real-time updates, so you can track your trades anytime with ease. 

How to execute a spot margin trade with the Bybit app

For traders looking to leverage their positions, Bybit offers a spot margin trading feature that allows you to borrow funds to increase your buying power. Start by logging into your account and tapping on 

Choose a trading pair, such as ETH/USDC, which supports margin trading with leverage options of up to 10x. 

Once your trading pair is selected, you’ll need to select the margin amount (e.g., 

 at which you want your limit order to execute.

You’ll also see several other important metrics, such as 

Enter the amount you wish to trade, and then carefully review all of the details.

After confirming your order, your margin trade will be executed. You can track your position in the 

 tab, where you can also set up stop-loss or take-profit orders to manage risk. 

How to trade derivatives with the Bybit app

Bybit also offers derivatives trading, which allows you to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Derivatives include Futures and Perpetual contracts, which can be traded with leverage, sometimes up to 100x.

To start, log in to your account and tap on 

Set your desired leverage (e.g., 50x) and choose between 

 margin modes, based on your risk preference.

 (if using limit or conditional orders) and 

Once you’re satisfied with your parameters, confirm your order and your position will appear in the 

Trading with the Bybit app offers numerous advantages that make managing digital assets both efficient and secure. The platform’s user-friendly design, high-speed execution and comprehensive risk management tools cater to traders of all levels. Our Unified Trading Account (UTA) streamlines fund management by consolidating assets for spot, margin and derivatives trading under one account, which reduces operational complexity and enhances overall efficiency. This streamlined approach lets you focus on strategy rather than logistics.

Additionally, Bybit’s state-of-the-art security measures — such as multi-factor authentication, regular independent audits and cold storage of assets — ensure that your transactions are conducted safely and transparently. With an interface designed to minimize distractions and provide real-time data, you can quickly monitor market movements and adjust positions. 

Our commitment to a secure and reliable trading experience is evident in our continuous improvements and proactive customer support. These features empower you to make informed trading decisions, fostering confidence in your ability to navigate the dynamic crypto market.

Bybit delivers a secure, robust and intuitive mobile platform that simplifies cryptocurrency trading for everyone. In this guide, we’ve explored how to set up an account, fund it and execute various types of trades — spot, margin and derivatives — using a fully localized and user-friendly interface. Our Unified Trading Account and comprehensive risk management tools ensure a smooth trading experience so you can focus on growing your investments.

Looking ahead, Bybit remains dedicated to innovation and excellence in the crypto industry. We continually refine our platform, based on user feedback and market trends, ensuring that you have access to the latest tools and features. Our commitment to transparency and security underpins everything we do as we build trust and empower traders. 

How to trade spot crypto on Bybit app.png

How to trade with the Bybit app

Crypto

DeFi

Yearn.Finance yields the highest returns in yield farming. Here's everything about YFI tokens, protocols, and more.

What-Is-Yearn-Finance

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This year, cryptocurrencies and blockchain-based projects reach new heights in growth and value. Yearn Finance, more commonly known as YFI or Yearn.Finance, is one of the 

 to show a massive price rally surpassing Bitcoin’s value (for a time) at over $25,000 per token. Still, it remains unheard of despite its phenomenal performance on their projects and vision.

So, if you’re searching for an answer to the question “What is Yearn Finance and how does it work?,” here’s precisely what you need to fully comprehend its concept and the processes it involves.

Yearn.Finance is an open-source, decentralized finance (

. It works as a yield aggregating platform to maximize the user’s investment by automatically moving the user funds between 

 lending protocols, such as Compound, Dydx, 

As of now, Yearn is one of the most popular and most decentralized DeFi projects in the crypto sector. While the YFI is the native cryptocurrency of Yearn.finance. Unlike Bitcoin, YFI is a governance token that boasts of the autonomous protocol.

That means users of the platform have the rights to cast a vote on the protocol’s direction that favor their intention the most. As of now, YFI is one of the largest Ethereum-based tokens prioritizing automated yield farming strategies.

Yearn.Finance is designed to autonomously move users’ funds to more profit-giving providers by locating the protocol offering the best annual percentage return (APR). It is considered a revolutionary breakthrough in the DeFi sector due to the potential yields parallel with stablecoins. 

Think of Yearn.Finance as a decentralized lending platform that lets users deposit ERC-20 

 such as DAI, USDC, USDT, TUSD, or SUSD into the protocol. As a return, stakers receive an equivalent amount of yTokens. So technically, a YFI coin is just like any other ERC-20 token. But instead of lending the deposited stablecoins into any particular protocol, the Yearn Finance platform automatically switches the tokens into a protocol with the highest yield to maximize the user’s profit.

When comparing YFI and other tokens, it possesses better automation and flexibility that has never been achieved before on the blockchain. The best part? The network only charges a small fee deposited into the platform’s pool and is then distributed among YFI token holders as dividends.

Andre Cronje is the founder of the popular DeFi protocol— Yearn. Although this protocol only 

, it has already achieved significant adoption in the crypto sphere. In early September, the platform’s native token, the YFI coin, even reached a peak value of approximately $44,000.

The original goal behind the platform stemmed from Cronje handling money for friends and family. He was looking for a way to put stablecoins to work for a profit. At the time, the most popular protocols were Aave, Fulcrum, Compound, and dYdX. As such, Cronje would manually check these protocols to see which was offering the best annual percentage return (APR). 

To avoid manually moving tokens around and paying 

 that would do the figuring for him. He then wrote the iterations for the yTokens. These yTokens could read the normalized APR output and move to the place, offering the best returns.

Subsequently, it became the basis for Yearn.Finance, which Andre first used himself before opening it up to others. The increase in the number of users had a positive effect on the protocol. That’s because each time a user interacted, the smart contracts checked to see if a rebalance was necessary. A higher frequency of interactions resulted in more shifts between protocols. And more shifts will produce a higher return. 

Currently, Yearn produces better returns in aggregate than any of its downstream sources on its own. The concept is relatively simple – the protocol sends more capital to the place with the highest returns. 

YFI is the native token of the Yearn.Finance platform. It is purely and simply a governance token, allowing holders to vote on decisions that affect Yearn.

YFI is an ERC20-token used for all governance activities on the platform, like voting on a protocol upgrade/change proposal. While there are only 30,000 YFI coins that have been minted and fully distributed to date.

To participate in the protocol, users need first to stake their YFI in a governance contract. They then receive voting rights and a percentage of protocol profits for each of Yearn’s products at regular intervals. To claim rewards, users need to vote, and once they have voted, their YFI tokens will be locked for three days, i.e., they won’t be able to un-stake the asset.

Firstly, TVL represents the dollar value of all the tokens locked up in a smart contract in a decentralized lending project. When analyzing the YFI’s TVL, most of the 

 (29,968 coins) has entered circulation. Thus, the token’s success was marked by an all-time high price of 

 in mid-September 2020 when it’s TVL in the parent protocol surged to over $676 million. As the buying sentiment grew, the YFI/USD exchange rate soared YFI over 

The upshot? YFI is now the first cryptocurrency to worth more than Bitcoin (BTC) per unit.

What Is The Yearn.Finance’s yEarn Product Used for?

Yearn.Finance has several features or services users can tap into now. The yEarn component of the protocol lets users deposit any of several stablecoins: DAI, USDC, USDT, TUSD, sUSD, and more. And as of now, Yearn looks for the DeFi platforms that produce the highest yield. 

Over time, the upgrades and improvements to secure the protocol make Earn more sophisticated. So, the size of the protocol’s user base means yEarn attempts to estimate the optimal allocation rather than simply dumping all of its holdings in one place. The allocation constantly changes because other users are going in and out of the liquidity pools directly.

In June 2020, staking stablecoins (USDT, USDC, DAI, or TUSD) into the Y pool will yield approximately 

 As of now, there is more than $650 million worth of crypto assets staked in the Y pool. Thus, making it one of the best returns in the decentralized finance sector. 

What Are The Yearn.Finance’s Vaults Used For?

Vaults are one of the main components of Yearn.Finance. They are the mechanism that temporarily holds the profits of stakeholders. While these profits are then distributed to YFI holders once the treasury is at or above $500k. And the profits are distributed as yCRV tokens.

Vaults represent the pools of funds that follow specific strategies. The use of vaults helps the community members work together to build strategies that determine the best yield protocol. They allow YFI coin holders to use any asset as liquidity. Liquidity is used as collateral, and collateral is managed at a safe level to avoid a default. The protocol then borrows stablecoins and puts the stablecoins to work on some farming. It then reinvests the earned stablecoins.

Is Yearn.Finance Different from Other Crypto?

Yearn Finance works similarly to other lending platforms. It lets users deposit any ERC20 stablecoin such as DAI, USDC, USDT, TUSD, or SUSD into the protocol and receive an equivalent amount of 

. The yTokens are like any other ERC20 token. The underlying stablecoin is then made available to lend.

Rather than lending the stablecoins into any particular protocol, the Yearn Finance platform automatically switches the tokens into a protocol with the highest yield to maximize user profit.

The network charges a small fee deposited into the platform’s pool and can only be accessible to YFI token holders.

How Sustainable Is The Yearn.Finance Ecosystem?

The purpose of Yearn.Finance has always been long term sustainability and symbiosis. Its creator 

 originally designed the ecosystem to be conducive to participating and optimized mutual settings. When a proposal is made, the goal is not to benefit yearn but to tweak all the systems engaged to benefit all participants and YFI coin holders.

with a trading volume of $300mil per 24 hours. At the same time, there are over 29k of YFI trading actively in 151 active markets.

Most experts agree that Yearn.Finance is very sustainable because its profitability is very high. The yields are high mainly because YFI is supported by a speculative enthusiasm for protocols with liquidity mining programs. The reason why “farmers” can get “yields” in three-digit and higher percentages is because speculators continue to buy new tokens on exchanges. It means speculators pay for the “yields” that “farmers” get in a more straightforward concept.

What Are The Challenges and Risks of YFI?

Although YFI is currently a pioneer in DeFi yield farming, it is not the only lending platform. Several (often questionable) YFI forks have recently appeared on the market and new Yield Farming aggregators such as 

 and asset management platforms such as 

. Which may pose new challenges for Yearn.Finance in terms of competition within the industry. 

Furthermore, the current returns from yield farming will fluctuate, and it won’t last forever. There are plenty of variables that can cause the public to stop buying new tokens and focus on those with stable value. Eventually, it’ll lead to a lower return. Experts and crypto enthusiasts express the hope that the launch of Yearn’s planned insurance, exchange, leverage, and liquidation products may diversify YFI revenue streams and provide option value for YFI holders.

For now, YFI remains one of the most exciting advances in decentralized management. The protocol created a large, diverse, and enthusiastic community of people who are very invested in the success of yEarn. Additionally, Cronje’s leadership and diversification of Yearn products are impressive. 

It’s important to remember that YFI is still a work in progress. That means there are no guarantees of a successful outcome or that the YFI token will remain valuable.

, and anyone can decide to imitate the protocol and concept. Over the year, Yearn has encountered many imitators. However, not many possess the proprietary technology which gives Yearn.Finance the edge over its competitors.

The YFI token value is mainly associated with the community around yEarn and reflects people’s confidence in the protocol and the people behind it. That makes it unpredictable and highly speculative.

The Yearn Finance project has enjoyed vast interest since its launch. After the YFI token crossed the value of $40,000 within a few months of its inception, many labeled it ‘better than Bitcoin.’ 

The nature and efficient protocol are what drives the efficiency of Yearn. For this reason, the platform’s user base will likely continue to increase in the years to come. Especially given that Cronje has announced a new 

. Aiming to focus on core lending and leverage products that increase yields with leverage.

Cronje’s intention to ‘dumb down’ DeFi for the average person turned out to be a winning strategy that catapulted Yearn to crypto stardom. His efforts to simplify the process and provide a better user experience stimulated the mass adoption and growth of YFI. 

Even though Yearn’s yield farming strategy involves a high level of risk, the protocol has so far managed to balance it out and provided some excellent returns this year with relatively limited risk. 

What Is Yearn Finance (YFI) in DeFi & How Does It Work?

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Grab Up to 5,000 USDT in Rewards