The decentralized finance (DeFi) sector of the cryptocurrency industry experienced a huge growth in the summer of 2020. One year later, DeFi applications are used very much by investors to get more yield from their capital compared to depositing it in a bank.
One of the hottest projects that came to life during DeFi summer is Yearn Finance (YFI). Yearn is a yield aggregator platform that is useful to help users maximize the yield they get by automatically depositing funds into the most profitable liquidity pools.
Moving the funds individually is a complex and expensive process for most people. Yearn moves user funds from decentralized lending protocols, such as AAVE and Compound in order to receive the highest profit.
Users only need to deposit their money and let the application work in their favor. That’s why Yearn became popular since many users were able to pursue the most lucrative yields while also saving money on transaction fees.
The YFI Token
Andre Cronje, the developer of Yearn Finance, released the YFI token as a governance token. Users who owned this token have the right to determine the development of the Yearn platform.
Andre says that the YFI token is valueless, but Yearn being a valuable tool for users, and having more than $1 billion total value locked in the application today, made many users wanted to own YFI.
YFI has only 30,000 supply, a relatively low amount for a cryptocurrency. Since the demand was incredibly high, YFI experienced an astronomical growth period in the early days after its release.
The price of YFI reached around $40,000 before going down and then running up to $90,000 in May. Now, YFI is at a support level of around $30,000.
Yearn now has more features, including the ability to procure flash loans when users need to liquidate their funds quickly. Another feature is a platform to swap different crypto assets.
With a strong development team, YFI is a major asset in the DeFi ecosystem. But does it hold as much profit potential as it did during the early days of its release?
YFI at Support Level on BigoMex Chart
YFI is one of the crypto assets available for spot trading on BigoMex exchange. Spot trading is a new feature on BigoMex that allows traders to buy and sell assets without using leverage.
The price of YFI is in a long-term support around $30,000. A breakout above the resistance level around $40,000 with high volume could be a signal to buy YFI. On the other hand, a breakdown below $30,000 could send the price downwards into the $20,000 support area below.
Trading spot YFI on BigoMex is considered low risk because the minimum order size is $10. Traders that own a small amount of capital can trade crypto assets on BigoMex exchange.
The mission of BigoMex is to lower the barrier to entry and make trading easy for beginners. Spot trading and low capital requirements can help bring that mission to life.
