Swyftx Cryptocurrency Exchange
- Buy YFI and 170+ cryptocurrencies
- Fast online ID verification & deposits
- Low fees and spreads
- Demo mode for beginner traders
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
YFI is the native token of the Yearn.Finance system.
Yearn.Finance is a DeFi yield farming system, focused on making it easier for users to automatically farm the highest-yields possible with their cryptocurrency.
Yearn is a growing collection of DeFi services, intended to act as a simple gateway for the wider DeFi ecosystem.
Its centrepiece is the ability to automatically invest user deposits in the highest-yielding place available in the DeFi ecosystem, through Yearn Vaults.
Users deposit funds into the vault, and those funds are then collectively allocated to the most lucrative yield farming available, and the returns from those are distributed proportionally to users, accumulating to the yTokens users are given when they make deposits.
Yearn can similarly let people make stablecoin deposits straight to the highest-yielding lending platform available, to earn competitive returns on stablecoins.
In addition to the ease of use, this also helps batch transactions to save on Ethereum gas fees.
The service doesn't come for free though, as performance fees and other costs are extracted along the way. These fees can be paid to YFI token holders as dividends, in an amount the community of token holders agrees on.
Throughout 2020 Yearn Finance has partnered with a series of DeFi projects which are gradually going to be integrated into the Yearn ecosystem in various ways.
Pickle Finance offers a similar product to vaults, called jars. It will be integrated when Yearn V2 goes live and will bring a wider range of stablecoin strategies to Yield.
Cream is a lending protocol that will enable Yearn depositors to use their vault tokens as collateral to borrow funds on cream, providing increased liquidity to the platform. Development resources will also be shared between the two teams.
Akropolis is a DeFi platform for institutional investors, giving them a convenient way to enter the growing DeFi market. Akropolis plans to integrate Yearn vaults into its platform with its next V2 update.
YFI is purely and simply a governance token. Its holders are allowed to vote on decisions that affect Yearn.
While simple on paper, this can potentially be quite complex and lucrative though, as evidenced by the token holders' decision to receive a cut of the fees.
And if Yearn becomes a prominent part of the DeFi world over time, other decisions such as support for different assets, and the way returns are paid or reinvested, could have profound impacts on the rest of the market over time.
Yearn encourages YFI token holders to actively participate in governance.
Risks of buying YFI
It's important to remember that YFI is an experiment and a work in progress. There are no guarantees of a successful outcome, or that the token will remain valuable.
In particular, it's essential to remember that Yearn is a public, open-source project which anyone can copy at any time. Yearn has many imitators and competitors, and it will continue to have them. Yearn does not have any kind of proprietary technological edge over its competition.
The value of the YFI token is primarily associated with the community that's grown around Yearn, and is a reflection of people's confidence in the people who are working on Yearn. This makes it extremely unpredictable and highly speculative.
If you are not completely certain of how YFI works and what its value proposition is, it may be safer not to risk your funds.
Here's a step by step guide to one way of buying YFI. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that's right for you.
Learn how to use Curve.fi for trading, providing liquidity and earning interest with this simple guide.
Learn how to get started investing in cryptocurrency, the methods available to you, and what to keep in mind before making your first purchase.
Learn how to trade futures contracts on Binance with this visual step-by-step guide.
Learn how to use DeFi aggregator Yearn Finance to earn interest on your cryptocurrency.
Staking is one of the most popular ways to earn an income with cryptocurrency – learn how to get started with this guide.
Learn more about the DOT cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the Filecoin cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the Avalanche (AVAX) cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the AAVE cryptocurrency in this beginner’s and buyer’s guide.
Learn more about the UNI cryptocurrency in this beginner’s and buyer’s guide.
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.