- Yfi Yearn Finance and why it is my next Crypto-Pick?
Well we all saw it moon, we all saw it fall, and we all are seeing it climbing back up again.
Defi has changed the world of crypto. Not a little but alot. 2020 allows you to bank from wherever you are from. The usecase was found and is being copied and copied and copied.... Everyone wants a part of the Defi cake. That is when yfi first comes to mind:
Introducing Liquidity Income
the founder of Yearn Finance and its governance token Yfi.
18.7.2020 yfi trades at 34.54$
22.11.2020 yfi is trading at 22665Us$
22665/34.54 gives us exactly a 655x
On the one hand this tells me that 100$ invested in July would be 65500$ by now...
whateverYfi is...I want that ;)
On the other hand how high could Yfi go?
Andre Cronje says following:
Late 2019 I had a simple problem, I had some funds and I wanted to maximize the yield it was receiving. So I would move it around between Aave, dYdX, Compound, and Fulcrum. I wrote some solidity to move it for me.
Andre Cronje would call the solidity roughly once per day and it would move the funds, this made it simpler, but not optimized, the solution was having more people interact with the protocol, the more users that deposit/withdraw the more rebalances that occur (moving funds) which optimizes the yield on a more micro level. That’s really all Yearn is, simple optimized yield switching.
I do not own Yfi and am therefore not invested in Yearn Finance.I personally think what this guy did is great but lots of copycats are out there shaming the name of decentralized honest Defi.
An idea of automatic optimisation of yield put to work in a decentralized space has been the talk of town in cryptography in 2020.
Well done Yfi
This is no financial advise.
Suggestions,advice or if you want your coin picked next please just post in the comments below.
Cheers and thank you very much for the follow& like and your generous tip;
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Chris aka Goodsoul