![]() Virtually anything of value can be tracked and traded on a blockchain network, reducing the risk and cutting costs for all involved. Their mining is painstaking, costly and only sporadically rewarding.īlockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. ![]() Cryptocurrencies are digitally mined, where very sophisticated computers solve extremely complex computational mathematics problems. They carry a pre-determined store value of their own, just like any other fiat currency like the US dollar or the Indian rupee. They are tokens that can be used as a form of payment in exchange for online goods and services. However, they are often criticised for the possibility of misuse in illegal activities, exchange rate volatility and the vulnerability of the infrastructure underlying them.Ĭryptocurrencies work using a technology called blockchain. Plus, the digital structure facilitates free portability across geographical borders, divisibility and transparency. Because cryptocurrencies do not have an underlying economic base, they are inflation-proof. Such currencies, theoretically, are immune to government interference or any kind of manipulation. They are built on the blockchain network technology, which ensures transparency and helps track every transaction. Cryptocurrencies are decentralised, meaning that no authority regulates them. They have their own store values, and are designed to use as a medium of exchange for buying goods or services. Cryptocurrency is a digital or virtual coin secured by cryptography, which makes it next to impossible to counterfeit. The big difference is, here there is no owner-issuer and it would, at least in theory, be accepted globally. The more assets users lock in a platform, the more tokens they are awarded by the protocols.Ever received a paper token from your next-door paan shop in lieu of a small change, which he would accept the next time you visit him? Imagine that token digitally, and that's your cryptocurrency. Additionally, yearn.finance capitalizes on a practice commonly called “yield farming,” in which users lock up crypto assets in a DeFi protocol to earn more cryptocurrency. The yearn.finance system retains $500,000 of fees and distributes the rest to YFI holders. Users who hold YFI can receive revenue collected by the protocol in the form of fees. YFI is also used to encourage users to lock cryptocurrencies in yearn.finance and its contracts running on Balancer and Curve. YFI has an initial fixed supply of 30,000 tokens (which could increase if YFI holders elect to do so). Anyone on the platform can propose, but only YFI holders may vote on it. To be enacted in yearn.finance’s code, a proposal needs more than 50% of the votes. Anyone who holds YFI tokens can vote on the rules users must follow when using yearn.finance. YFI in practice YFI is the cryptocurrency that governs the yearn.finance platform. Due to its governance model, these percentages are subject to change by consensus at any time. Yearn.finance makes a profit by charging withdrawal fees as well as 5% gas subsidization fees. The platform makes use of various tools to act as an aggregator for DeFi protocols such as Curve, Compound and Aave, to bring those who stake cryptocurrency the highest yield possible. One of the aims of yearn.finance is to simplify DeFi investment and activities such as yield farming for the broader investor sector. Cronje has a long career in cryptocurrency and has held positions at smart contract ecosystem Fantom and CryptoBriefing. A brief history Yearn.finance was launched by independent developer Andre Cronje in 2020.
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