To a new investor, especially someone who is unfamiliar with blockchain investments, these factors can be a hindrance. As such, there is still a lot of confusion surrounding what this new sector encompasses, the main functionalities, standards, and overall profits. DeFi is ComplicatedĭeFi is still in its infancy stage. These low returns only hurt the industry as they create an artificial barrier to adoption. In the past, DeFi platforms have managed to secure healthy fees by reducing the rates they pay investors. Low ReturnsĭeFi investors also take a hit in terms of their return rates. These actions can lead to runaway sell-offs that occur in minutes and shed millions in market cap from a project. These selloffs spur more investors to sell their assets to try and avoid losses. Speculative investors are notoriously jumpy in terms of selling their assets. This dependence on arbitrage trading places the entire market at risk. Investors purchase these tokens with the hopes that they can resell the tokens at a later date for a higher value. The current state of the DeFi sector is volatile and speculative. These factors have earned Yearn Finance a reputation as one of the most decentralized projects in cryptocurrency. Additionally, there was never a pre-mine of YFI tokens. For example, the company never hosted an initial coin offering. Everything about Yearn Finance reflects a strong commitment to decentralization. Yearn Finance combines various technologies to combat centralization within the sector. What Problems Does Yearn.finance (YFI) Solve? Today, Yearn Finance has a reputation for providing users with the highest annual percentage yields (APY) on their deposited cryptocurrencies in the industry. This decentralized ecosystem was built to eliminate the most pressing issues facing the market. The next-gen DeFi platform Yearn.finance (YFI) continues to make waves across the sector.
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