The DeFi protocol Yearn Finance is experiencing its greatest glory. Just a month and a half after its launch, Yearn Finance became the second most important DeFi project in the crypto ecosystem by capitalization and will now launch a new product for Ethereum.
Year Finance It is a protocol DeFi and a cryptocurrency launched in July that has been extremely successful within the crypto ecosystem, and now with the launch of its new product called Ethereum Vaults (YETH), it is expected to achieve higher returns for deposits of Ethereum (ETH).
While YFI's success is due to the project having innovative and well-crafted products, the launch of a vault like Ethereum Vaults (YETH) will allow this project to expand its success much further. YETH is a kind of vault that will allow users to protect and improve their returns by making yield farming or yield farming. Likewise, through YETH users will be able to stake their Ethereum shares to further optimize their yields by driving demand and adoption of Ethereum (ETH).
According to several reports media presence, the vault went live a few hours ago following a community vote. Now, it is quite likely that this project will attract a larger amount of ETH tokens to the market, significantly increasing the demand and importance of the cryptocurrency.
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What is Yearn Finance and what is the reason for its success?
The decentralized finance protocol Yearn Finance (YFI) was launched in July this year under the management of Andrew Cronje as the main developer of the project. From the beginning, YFI started off on the right foot and with clear goals: to be a governance token used in the protocol's voting processes with 0 financial value. Although evidently, at the moment, YFI exceeds $31.000 USD per unit. Now it is a DeFi project that has incredible capabilities to facilitate access to financial instruments based on technology blockchain.
Yearn Finance has an established supply of 30.000 YFI tokens, a fairly active community, and a recognized developer with extensive experience in the crypto world. At the time of announcing the project, Cronje also revealed the entire ecosystem behind Yearn Finance, which includes: ytrade.finance, ypool.finance, and liquidate.finance, yleverage.finance y yswap.exchange.
For his part, at the start of the project, Cronje did not establish a “developer reward”, despite having every power to establish one for himself for the development of this project.
With a transparent and decentralized launch and with all these aspects, and many more, Yearn Finance has managed to attract the attention of thousands of users and enthusiasts, which has led YFI to have a price that exceeds $31.000 USD per unit at the date of this publication, positioning itself as the first cryptocurrency on the market by its own value.
Importance of Ethereum Vaults
Through Ethereum Vaults (YETH), users will be able to store their ETH holdings in Yearn Finance, as an instrument to significantly improve their returns. Likewise, as users store ETH within the DeFi protocol, part of the ETH supply within the cryptocurrency markets is reduced, increasing the financial value of ETH, due to the growing demand for this cryptocurrency in different ecosystems and applications.
For his part, the founder of Nugget News, Alex Saunders, also claims that Ethereum’s vault, YETH, will be a bullish product for ETH’s valuation. Saunders claims that the movement of ETH into Yearn Finance will cause a liquidity deficit in the supply of ETH in the markets, while the growing demand for this cryptocurrency and its multiple uses will drive up its value.
To date, Yearn Finance (YFI) has a value of $31.185 USD and a market capitalization of $934 million, ranking 27th among the top cryptocurrencies on the market. Likewise, according to DeFiPulseYearn Finance ranks #7 among the top DeFi projects with a total value locked of $781 million.
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