What is YFI Yearn Finance? The reason why YFI has surpassed the price of Bitcoin
The YFI token has been creating a lot of craze lately. In other words, since its inception, it has created many large fluctuations, one of which should be mentioned that the price of YFI is currently outstripping Bitcoin, the king of the cryptocurrency world. Like this What is YFI Yearn Finance? What is the reason why YFI exceeds the price of Bitcoin? To find the answer to the previous question, let’s go to the following article.
What is Yearn Finance (YFI)?
Yearn Finance is known as a decentralized ecosystem or DeFi which consists of aggregate companies using lending services. With the aim of optimizing your token loan. In other words, the tokens you deposit will be converted into desired tokens (or ytokens) and then the most profitable loan options or services will be provided to maximize your profits. With lending platforms such as Aave, Fulcrum, Compound, etc.
An explanation for you if you find Yearn confused then you can think of it as a very smart bank account that automatically invests your assets correctly with low risk and special features, especially all of them are implemented on the Ethereum platform.
The YFI token is considered a cryptocurrency, uses and operates on the Ethereum platform.
YFI governance model
The ability to manage and issue YFI is considered a very interesting thing for the participants.
Without pre-mining, without allocation and without priority sale, it is the same when everyone is positioned and equally benefited from the Yearn Finance protocol.
Furthermore, its administrative chemistry is ensured by nine signatories, including no Cronje. When you want to change the protocol, only six signatures on 9 participants are required.
To survive and develop sustainably over the long term, it is imperative that the protocol ensures that there are no mistakes when there is a risk of an attack. It is seen as a necessity for any cryptocurrency in the cryptocurrency market.
More precisely than many other protocols, if other protocols transfer all administrative rights into the hands of the community, it will take many years. But for Yearn Finance, it’s encouraged that the community takes full control and that happens within a week.
Does the price of YFI really exceed BTC?
Welcomed in July of this year, Yearn Finance is considered to be the first Ethereum protocol.
Trading around $ 1,000 about a month ago, YFI quickly rose 14x in just one month.
Currently the list price of this YFI coin is approaching $ 14,000. Compared to the current price of BTC which is below $ 12,000, it shows that the price of YFI has indeed surpassed the BTC cryptocurrency king by some distance and spectacular.
In addition to the fact, this comes as no surprise to many investors when they predict that YFI will quickly hit this record high. At the same time, many cryptocurrency investors in the market have opened “huge” celebrations for this promising boom.
So what led to the spectacular breakout of the YFI token, we’ll find out in the next section.
Reasons for the spectacular growth of YFI
There are many arguments put forward to answer the above question, but I will summarize the main reasons behind the strong growth of the YFI token.
The total value of the holding has increased dramatically
One of the first reasons to mention is that the total value of the tokens developed on the basis of Ethereum has soared. In other words, this spike came from the introduction of the Curve Token (CRV). It is known that there are around $ 650 million stuck in DeFi decentralized finance.
Token blocking leads to a more unique supply of YFI. With its current offering limited to just 30,000, it is said to be far less than the rest of the digital assets. A break in BTC’s list price is believed to be a psychological event.
Further protocol updates are being released
Equally important is the fact that Yearn Finance’s lead developer is constantly focusing and releasing significantly updated versions of the protocol. Many of the updates themselves are created to cover the defi protocol.
All of the above leads to the conclusion that this is considered a huge opportunity to create a strong development for the Ethereum platform. Not only does it increase the value of the tokens it contains, it also creates cumulative value for those who hold YFI coins.
Get positive PR from celebrities
Along with the above two reasons being an important reason, part of helping promote YFI’s rapid development is receiving positive PR from famous figures in the cryptocurrency market.
A blessing from YFI to please many famous figures in the cryptocurrency market since its launch until now. That’s why they always actively PR for YFI.
One of them is not to mention Arthur Hayes is a BitMex operator. As he once tweeted that only YFI excites him more among other defi protocols.
It is estimated that YFI will still have potential in the future, promising to have its strong continued development, when currently 1 YFI is greater than 1 BTC. Being the first altcoin to surpass the price of Bitcoin, creating a major event in the decentralized financial market defi.