What Is Yearn Finance (YFI) in DeFi & How Does It Work?
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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 ERC-20 tokens 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.
What Is Yearn.Finance?
Yearn.Finance is an open-source, decentralized finance (DeFi) lending protocol based on the Ethereum blockchain. It works as a yield aggregating platform to maximize the user’s investment by automatically moving the user funds between DeFi lending protocols, such as Compound, Dydx, Curve, or Aave.