The cryptocurrency space and decentralized ledger technology (DLT) is heating up right now, both in value and in growth.
Total Capization of the field of 1,7 USD rate of before. Private Bitcoin used 1 dollar rate. Furthermore, according to data from CoinMarketCap, the number of projects is at 8,697.
In addition, a recent analysis by The Block Research revealed the DeFi space is the fastest growing area of the market. This is after the general value (TVL) in the time is not grow up 3 times this year.
Indeed, the increased popularity of the DeFi space stems from the impressive growth in the space, in part led by Andre Cronje’s Yearn Finance. As was stated, the DeFi developer was also named DeFi character of 2020 by DeFi Prime.
This article will dive into Cronje’s flagship Yearn Finance project, about the launch of its original license release, dig deeper into the famous vault (vault), and explore the “ testing in product for development.
Launched on July 17, 2020, Yearn Finance is the main recommendation platform for the tough year “DeFi summer”. The platform was developed on the Ethereum network and is Cronje’s answer to the world of regulatory constraints on DeFi.
At that time, explore and research a lot of pool staking in negligible time and resources. This makes it impossible for those new to the cryptocurrency to access the space.
Cronje’s idea is to become the center of all the swimming pools in the space, meaning productive farmers (profit growers) need only one place. Although not a completely new idea, Yearn also has a small touch: the license model.
YFI has a maximum supply of just 30,000 tokens. Unlike many other platform’s token stubs, including BTC, YFI provided all of these tokens from the get go.
However, the unique truth with YFI is that everyone, including Cronje, other developers and Yearn participants have an equal chance of getting shares. Developers do not reserve any tokens for themselves.
Indeed, this immediately made the platform popular, and the DeFi community named the approach the “Equal Release Model”. Maximum supply has since expanded to 36,666 tokens, following a community vote to enjoy for developers.
But of course, the initial release and the respective supply is small, so the magic should be done with YFI’s price tag.
Originally priced at just under $ 30 but YFI has increased in price to as much as $ 40,000 per token in less than 2 months. This investment school capitalization was given its up to more than 1.3 billion dollars.
After 6 months, YFI ranked 58th out of 8,697 cryptocurrencies, according to its market cap. Or better yet, the platform currently has TVL Approximately $ 310 million, giving it the 18th spot in the DeFi space at the point of writing.
Certainly, the company that released the model is novel with admiration and the cause of the popular transforming credibility platform.
Join the Vault
The Yearn platform is comprised of a number of factors. The first is the Rate Annual Table (APY) that shows the annual interest available through zoning in some loan pools on the DeFi space.
Yearn set this table in the size APY in a product with name Earn, allow user to quickly and easily review the best exchange rate. But the platform’s surrender is the Vault.
Yearn Vault is a set of investment strategies that aim to extract the highest level of income of all the lending pools linked to the platform. We operate by either automatically selecting the top Monetization pools or through user adjustment and investment funds.
Vault basically automates the productivity (profit farming) process. Indeed, products that simplify the process of making money on DeFi, and alleviate the previous learning curve are a deterrent to entry.
Accordingly, this is the main reason why the platform is back so popular. In fact, Yearn was recently included in an upgrade for another product called Zap, wrapping all that in with just one mouse eye.
Although the term is often combined with both Yearn and a dual DeFi when impurities appear, Yearn has done an excellent job in the simplification process.
However, despite the tremendous achievements in development over the past 9 months, Yearn is still just an experiment as Cronje is often emphasized.
Test in product
This thing can be viewed through the speaking language “I experiment in product” by Cronje. Essentially, the developer focuses on Yearn development and the platform is currently experimental.
He said this clearly on Twitter:
“When I built the software, I built it for myself. If you want to match with it, please be careful, there will be an error ”.
However, this seems to be aimed at some of the platform’s “investors”, or as he calls them “ape,” who quickly cite the developer after a exploit or discovery was made.
Indeed, Cronje recently wrote about his experience in an article on Media, which also motivated the use of the aforementioned supply to indulge in Yearn’s developers.
While such “investors” are likely to only participate for money, they can set up testing opinions during production that will keep users moving.
Last month, a hacker mined one of Yearn’s vault worth $ 11 million, when the hacker took away only $ 2.8 million. Several other DeFi platforms following Cronje’s approach have also been exploited.
Including SushiSwap (SUSHI), Alpha Finance Labs (ALPHA) and CREAM Finance (CREAM). Testing a good experiment, however, is not purely in experimentation, but rather how it adapts to new information.
All of the aforementioned projects are derived from those attack tools and continue to work today.
The future of finance
In fact, Cronje was praised not only for Yearn but also for his assistance in investigating all of the above mentioned mining services. Finally, the popular publication focusing on DeFi – DeFi Prime has called Cronje the DeFi Person of the Year 2020.
Furthermore, not only do vulnerability patches make this platform stronger, but both Cronje and Yearn encourage a new sub-area in DeFi: platform protection.
For this, Cronje and Yearn Finance will likely continue to lead the DeFi space, both through technology development and the development of new ideas.
Most frankly, Yearn Finance could be the future of finance, just as French financier DeFiGod used to be called “The Future of France”.