YouHodler Now Supports yearn.finance (YFI)
YouHodler is pleased to announce yet another addition to our platform, yearn.finance (YFI). YFI is the 4th new listing this week to the platform bringing our strong total of coins/tokens/stablecoins on the platform to 30. YouHodler clients can use YFI on the platform in the following ways:
- YFI savings accounts (4.5% APR + compounding interest
- Crypto backed loans using YFI as collateral (LTV up to 90%)
- Multi HODL
- Universal conversion between YFI and all digital/fiat currencies on the platform.
Before you rush to YouHodler to try out this new feature, here's a little background on yearn.finance first.
What is yearn.finance (YFI)?
In short, yearn.finance became very popular as an aggregator service for decentralized finance projects. The project introduces automation to help DeFi investors to maximize their profits from yield farming.
The yield farming trend gave an immense boost to the crypto and DeFi space in 2020. Yield farming allows investors to provides liquidity to liquidity pools to enable lending and borrowing services. In return, lending platforms pay high interest rates to liquidity providers. Moreover, some platforms like yearn.finance provide liquidity providers the platform’s token as an extra incentive. In the yearn.finance case, this is the YFI token.
Why is liquidity so important?
Why do we need some much liquidity? Many DeFi projects failed to reach adoption due to low liquidity. If few people use the project, it can often not reach its true potential. To solve this problem, yield farming incentivized crypto investors to provide their “spare cash” to liquidity pools to create more liquidity.
The yearn.finance project was launched by an independent developer Andre Cronje in 2020. Instead of raising capital from venture capital firms, he decided to launch the protocol himself and use mainly Twitter as its marketing tool. Little to no marketing efforts were needed because the project promised astonishing yield farming returns never seen before. On top of that, Andre Cronje has translated the complex liquidity provisioning process into a much easier process optimized to maximize your returns by integrating many individual projects into its protocol. For instance, the yearn.finance protocol automatically rebalances funds to optimize its returns while taking care of fee optimization.
YFI token holders earn voting power on community proposals and are able to receive revenue collected by the protocol in the form of fees. Many crypto investors have embraced the project as an excellent way to earn passive income on their crypto holdings. On top of that, the project has boosted the adoption of DeFi services.
Put your YFI to work with YouHodler
yearn.finance is a fantastic way to put your crypto to work for you and we support that "active HODLer" mindset. But why stop there? Take YFI to the next level with YouHodler. Multiply it with Turbocharge or Multi HODL or use it as collateral for a classic crypto backed loan. Alternatively, keep your YFI in our wallets to earn 4.5% APR. Be a part of the DeFi and active HODLer revolution with us today.