Decentralized Finance protocol yearn.finance’s token YFI has surpassed the $20000 mark, eclipsing Bitcoin’s all time high back in 2017.
According to data from Coinmarketcap, the YFI token has surged in value and is sitting under the $26000 mark at press time. The price of the token increased by over $5000 in six hours on Saturday, marking an unprecedented day of growth.
The new highs have surpassed previous price discoveries over the past seven days. At the beginning of August the price of YFI was just under $4000.
What is Yearn.Finance?
The yearn.finance platform is a yield aggregator for different decentralized finance lending platforms that automatically rebalances to give users the highest possible yield for different DeFi tokens.
Users can use the platform to deposit $DAI, $USDC, $USDT, $TUSD, and/or, $sUSD and earn interest on staking their tokens.
According to the yearn.finance resource documentation page, the platform consists of five different decentralized finance products. The yearn.finance platform is a profit switching lender that allows users to optimize lending yields. This is just one of two products that are currently live. The second live product is the yswap.exchange which is a ‘single sided’ automated market maker, although it is still in beta testing.
The ytrade.finance platform is in testnet stage and is aimed at providing leveraged stable coin trades. The yliquidate.finance is also in testnet but is touted as a 0 capital automated liquidation product which is plugged into DeFi money market protocol Aave. Lastly the iborrow.finance is a product that provides credit delegation vaults for smart contract to smart contract lending, which is also currently in testnet phase.
The YFI token itself is a governance token that allows its holders to vote in policy proposals of the management of the yearn.finance network.
The current amount of value locked in the yearn.finance platform is around $929 mln according to data from DeFi pulse.