With Bitcoin ($BTC) approaching its historical high, major cryptocurrencies such as $ETH are enjoying a bullish run. Among them, one major highlight is undoubtedly $YFI, governance token of DeFi protocol Yearn Finance. Dubbed “DeFi’s Bitcoin”, $YFI has been a great hit in crypto space since its launch in July.
Here are a 3 reasons $YFI is so relevant.
1. Yearn Finance's Governance Token
Driving most of the excitement in crypto, DeFi protocol Yearn Finance is a community-driven robo-adviser for yield by aggregating DeFi protocols. In addition to introducing the yield farming or liquidity mining program, Yearn Finance also pioneered in launching the Vault product. This refers to capital pools that automatically generate yield for users based on opportunities present in the market.
Distributed through liquidity mining, $YFI is the native token of the Yearn Finance protocol. YFI is used primarily for its governance mechanism, allowing holders to vote on proposals, govern the Yearn ecosystem. It is also eligible to receive a portion of the protocol profits.
The introduction of governance tokens by major DeFi protocols led to the summer DeFi boom.
2. Andre Cronje, "King of DeFi"
Yearn Finance is the brainchild of the well-known cryptographic programmer Andre Cronje. In addition to Yearn, Cronje has in fact launched 5 DeFi protocols this year, such as yinsure.finance, Eminence (EMN), Liquidity Income (LBI), Keep3r Network ($KP3R), and lately Deriswap. He became the rising star of the crypto scene. However, with the bizarre hack on his unfinished project, Eminence, Cronje’s “test in prod” method has become one of the most controversial development processes in the crypto space.
3. "DeFi’s Bitcoin”
$YFI was officially launched in July 2020, and quickly became a mega hit in the DeFi space. It was experiencing a strong uptrend with its price rising from US$3 to US$30,000 by the end of August. And it became the first altcoins to exceed the historical high price of Bitcoin. After surpassing US$43,000 in mid-September, however, $YFI seemed to fluctuate in a consolidation channel, before recovering to approach US$30,000 level in recent months.