However, since Yearn is a decentralized, self-governed platform, Cronje’s departure didn’t create any stoppage in its operations. This announcement created a degree of panic among the Yearn Finance user community, due to Cronje’s pivotal role in the project. In early 2022, Cronje announced his withdrawal from the industry and all of the projects - including Yearn Finance - in which he was involved. Before founding Yearn.finance, he was a technical advisor to the Fantom blockchain and chairperson of the Fantom Foundation’s Technology Council. Cronje is a well-known figure in the crypto industry. Yearn.finance was founded by South African software developer Andre Cronje. Nearly all of that amount represents YFI’s circulating supply. In February 2021, the Yearn.finance user community voted to increase the total and maximum supply to 36,666, still a very modest count for a crypto token supply. The minuscule 30,000 supply is in stark contrast to most other crypto projects, which typically issue millions or billions of units for their native cryptocurrencies. This relatively low number of tokens ensured that each YFI was worth thousands of dollars - and, at times, tens of thousands - on the market. The 30,000 YFI distributed in this manner represented the token’s maximum and total supply at that time. These two automated market maker (AMM) protocols were among the primary platforms used by Yearn.finance for yield optimization. During the initial distribution, 30,000 YFI were given to liquidity providers on two popular DeFi protocols, Curve (CRV) and Balancer (BAL). As the market stabilized in June, the token managed to snap out of its more-than-year-long decline. Between May 2021 and June 2022, YFI was on a downtrend, declining to around $4,400 by mid-June 2022. The overall crypto market’s turbulence in 20 didn’t spare the YFI token, either. From that point, YFI experienced a relatively long period of growth, hitting its all-time-high price of $90, 786.89 on May 12, 2021. In September, the YFI token reached its 2020 highest price of over $43,000 as the market reacted positively to the new platform’s innovative business model and the scarce levels of the token’s supply.Īfter the initial enthusiasm had worn off, YFI had a significant downward correction, sliding to approximately $8,500 by early November 2020. During that day, the Yearn Finance price touched its all-time-low price of $31.65, and then set out on a confident growth trend that lasted until mid-September 2020. On its first trading day on the market (July 18, 2020), the YFI token was valued at around $790. On these DeFi platforms, the token can be used to earn yields in a variety of YFI-based pools. Additionally, several popular DeFi protocols such as SushiSwap and Curve Finance accept YFI deposits on their platforms. The YFI token may also be invested on the platform to earn yields. As such, Yearn is among the very few protocols in the crypto world that pay rewards in exchange for governance voting. YFI holders are rewarded with a proportion of the protocol’s earnings for taking part in the voting process. The standard lockup period for each vote is three days. In YFI’s terminology, staking refers to a temporary lockup of funds on the protocol for governance purposes. Token holders have the right to stake their YFI and participate in the formal voting process on the platform. Yearn’s native cryptocurrency is YFI, an ERC-20 standard token. It gradually expanded its services, investment options and technical features, introducing V2 of the protocol in January 2021 and V3 in May 2022. Yearn handles the investments by allocating them to a variety of liquidity pools on other DeFi protocols to derive the best possible yields. Crypto investors may use Yearn Finance to maximize their returns by depositing funds on the platform. Yearn.finance, also known as Yearn Finance (YFI), is an Ethereum-based, multi-chain decentralized finance (DeFi) platform that offers automated yield optimization and aggregation services.
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