Just In: Yearn Finance Now Available in Crypto IRA's at iTrustCapital

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Decentralized Finance is one of the hottest topics in all of fintech. Investors now have the ability to invest in Yearn Finance directly from their Crypto IRA / 401k with iTrustCapital.

Yearn Finance is an ecosystem of different applications that are governed and powered by a single token -YFI 

What is Yearn Finance?

Yearn Finance is a yield aggregator that allows users to generate maximum annual percentage returns (APY) on their assets within the Ethereum blockchain. It utilizes smart contracts that produce optimal returns on user investments through automated funds movement between DeFi lending platforms like Aave, dYdX and much more. 

Yearn Finance users can earn from various ways, including loan commissions and trading commissions on various platforms. This is achieved by converting users' deposited tokens to yTokens and using an automated market maker to move the funds across different yield farming platforms. 

The yield farming protocol has an extensive ecosystem and is regarded as one of the most cutting-edge crypto space projects. 

The most important thing to realize is that users do not need to manage any of the complicated smart contracts or investment strategies, they simply deposit the funds and Yearn Finance takes care of everything.

How did Yearn Finance start?

Yearn Finance has a storied history as it is the brainchild of popular cryptocurrency developer Andre Cronje. Cronje is a programmer that became a crypto enthusiast and sought to create a platform that could simplify existing yield farming systems to optimize earnings for yield farmers. 

To simplify this process, Cronje created a platform where users can deposit funds that would be automatically moved to other lending protocols that provided the highest annual percentage yield (APY). 

Cronje launched the platform called Yearn Finance in 2020 to much fanfare from the crypto community. He released YFI tokens with no initial supply and as a fully decentralized project.

This made YFI one of the few defi tokens that was not pre-mined and did not include an allocation for its founder. Since then, Yearn Finance has grown to become one of the biggest DeFi projects with an active community and innovative products. 

Who manages Yearn Finance?

Yearn Finance is a collaborative community project that has attracted many successful developers that have contributed to the platform's success. Andre Cronje remains the face of the project and is actively involved in developing the Yearn Finance ecosystem. 

Yearn Finance has also added more members to its team, including anonymous developer Banteg who leads a team of more than 10 contributors. Nevertheless, the direction of the project is determined by community members who vote for proposals via the YFI token. 

What is YFI the token?

YFI is the native token of Yearn Finance and also serves as the utility token of its ecosystem. It is an ERC20 token that functions as the governance token which holders can use to vote on proposals and decision-making on Yearn Finance. 

A proposal was voted for in January 2021 that will increase the utility and use cases of YFI tokens. It intends to replace the existing YFI staking rewards with YFI buybacks and use YFI for cash flows. YFI holders will also participate in YFI governance even while their tokens are utilized on other platforms. 

At the time of launch, YFI was designed to have a maximum supply of 30,000 YFI tokens, and there was no ICO or presales. However, the number of tokens has been increased by 20% after a governance vote was held in February 2021. At the moment, the total number of YFI tokens in circulation is 36,635. There is a social contract among the community that will theoretically cap this forever. 

YFI was one of the tokens that drove the DeFi boom that started in 2020. Due to its limited supply and value to yield farmers, the YFI token is one of the most valued tokens in the market. It hit an all time high of $93,435 in May and has delivered a ROI of 3,116% since its launch in July 2020. 

Tax-Free YFI

If you want to learn how you can potentially invest and trade YFI tax-free, head to www.iTrustCapital.com

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.