About yearn.finance (YFI)

Yearn Finance is a decentralized asset management platform. As a roll-up of myriad projects, the platform has several uses, including liquidity provisioning, lending and insurance.

YFI, with its limited supply, is the platform's native asset.

The most prominent product in its ecosystem, as Messari points out, is Vaults representing an array of yield farming optimization strategies proposed by the community.

Platform users to help manage holdings by selecting the strategy that best suits them and depositing assets into that vault Yearn Finance technology allows for shifting capital, auto-compounding and rebalancing, the platform says.

During the latter part of 2020, Yearn Finance announced several mergers, bringing leading DeFi projects together, creating an ecosystem.

A Medium post summarized the projects that were pulled into the combo. They all focused on key pieces of decentralized finance (DeFi) infrastructure. The projects included SushiSwap, an automated market maker (AMM); Cream Finance, a DeFi lender; Akropolis, representing a means of institutional support; and Pickle Finance, a yield management platform.

"As an ecosystem, we enjoy strong collaboration across teams," the Medium post said.

Investors who are not technically savvy relative to more experienced DeFi traders are Yearn Finance's target audience.

Yearn Finance launched in February 2020 and has seen growth in use among the developer community now pursuing new strategies to maximize yield farming activities using automated solutions and leveraging collateral.

Yearn is one of the "leading yield aggregators in DeFi," Blockworks said.

A token buyback program sparked volume in YFI at the start of 2022, Cointelegraph said.

The current price of YFI

As of early April, YFI was trading at roughly $24,000 having shed one-third of its value since the start of 2022.

The token’s slide in the first three months of the year reflects generally stiff global macro headwinds that have detrimentally impacted digital asset markets.

YFI has gained notoriety due to its comparatively large spot price. The token hit an all-time high of $90,786 in May of 2021, representing a 286,744% increase from its March 2020 low of $31.65, according to CoinGecko.

How the price of YFI is determined

YFI’s price is a function of its extremely hard, deflationary nature. The maximum supply: 36,666, most of which are in circulation. YFI was launched in 2020. There was no formal offering or airdrop. All tokens, rather, have been distributed as rewards to qualified liquidity providers.

Continued success of the decentralized finance (DeFi) sector would positively impact the price of YFI and the inverse would be the case as well were DeFi to fall out of favor. And basic supply/demand dynamics suggest YFI’s scarcity is primarily the reason behind why it changes hands at such high prices (Messari).

What the bulls are saying about yearn.finance (YFI)

• Yearn Finance is bringing a much-needed level of community governance to DeFi while also providing some impressive returns on investment with relatively low risk, Coin Bureau said.
• Yearn Finance changed the game via its unique toolset that leverages proprietary protocols to increase investor yields, Securities.io said.
• In five years, YFI could be $100,000, said Coinpedia.

What the bears are saying about yearn.finance (YFI)

• YFI is a bad long-term (one-year) investment, WalletInvestor said.
• The February 2021 exploit of YFI protocols shook confidence in the token/protocol but also the larger DeFi space, Crypto Briefing said. 
• By the end of the first week of April, YFI was expected to slightly decline, CoinCodex said.