The price of yearn.finance (YFI) hit $38,104 as of Monday 31 August, with a 24-hour trading volume of $782,514,727.
YFI’s price hiked 22% in the last 24 hours. It has a circulating supply of 30,000 coins and a max supply of 30,000 coins.
Photo courtesy of CoinGecko
YFI is a cryptocurrency token that operates on the Ethereum platform.
Recently, YFI has become a decentralised finance (DeFi) powerhouse in the crypto industry.
According to Binance Academy, decentralised finance refers to the ecosystem comprised of financial applications developed on top of blockchain systems.
Regarding YFI, Nairametrics noted that there are multiple protocols providing yield (returns) on the loaned capital. These yields vary from one protocol to the next. YFI automates and optimises lending such that you can earn maximum value on your capital without researching each protocol.
YFI uses the token as a tool in producing returns from stablecoin deposits such as Tether, Nairametrics added. “These returns have become so attractive to investors that hundreds of millions have been transferred to the yearn.finance protocol.”
Reasons behind yearn.finance hike
Furthermore, Cointelegraph attributed the hike in YFI’s price to three factors: a potential new partnership, a listing on Aave, and strong technicals.
Earlier in August, the money market protocol Aave (LEND) listed YFI. Aave is the largest DeFi protocol in the global market, with more than $1.52 billion in total value locked.
Also, yearn.finance and its main developer Cronje has pushed out many products ranging from vaults to decentralised insurance.
Moreover, YFI announced the launch of yinsure.finance, which is one of the first tokenised insurance services in the DeFi space, alongside Nexus Mutual.