Yield farming is on the rise like and it is attracting hordes of crypto enthusiasts. To describe in brief, the broader dynamics of yield farming consists of the interaction between a liquidity pool and the liquidity providers. The providers deposit their tokens to a liquidity pool. In turn, the pool powers a marketplace. In this marketplace, the users can lend, borrow, or exchange paying a transaction fee. The marketplace then pays the liquidity providers back from the transaction fees earned per their share in the pool. Providers can then re-deposit the tokens earned to another liquidity pool to earn more.
Although switching between farms and tokens is profitable, the process is costly and time-consuming. It involves high gas costs on transactions. That’s where index tokens come into play. Tokens that not only act as investment standards and reflect a degree of overall market price but also increase the overall fluidity and enrich the profession of digital currency’s trading products.
The entry of Y.Financial in the domain of yield farming makes the process smarter, cheaper, and more convenient. As a decentralized finance platform (DeFi), it empowers users with simple and cheap access to the market-leading DeFi tokens.
An investment into the index translates to reduced volatility and automated yielding opportunities. The main token of Y.Financial is YDOT, a governance token, and the first index token that they have launched is YFIN.
YFIN combines four top-performing Defi coins in the market as its underlying assets, also known as Core4. Any user who wants to invest in these top-performing coins can do that through YFIN without having to swap multiple times. Each swap saved translates to reduced gas fees. In total, an estimated saving of anywhere between $20 and $50 is guaranteed.
Communities Appreciate Governance
Similar to business Factom facilitates future business developments based on the communities’ ask. With the recent boom in DeFi, other businesses are catching on quick. Acquiring a governance token implies that along with holding additional underlying assets, users will also get another token back on a 1:1 ratio. For Y.Financial, YDOT is the governance token, each index coin would also translate to increased power in voting.
The number of YDOT tokens a user obtains, the more powerful his or her vote becomes. Not only becoming a powerful voter, but a governance token also makes one eligible for rewards. Voting for governance in Y.Financial is followed by campaign rewards that will be proportional to the number of YDOT tokens. Therefore, any YFIN holder is entitled to a chain of benefits that includes returns, rewards, and authority.
Index Tokens & Their Benefits
These tokens are similar to ETH. They provide an aggregated trading opportunity in four of the highest performing assets in DeFi. Whether it would be more beneficial to replace any particular underlying asset with a more profitable one is what the voters will be deciding. Since a governance token implies a voting opportunity and an index token implies a voting opportunity, the users are in charge of deciding what assets their investments will be put into.
Currently, the Core4 underlying assets are YFI, YFII, UNI, and SUSHI. In the DeFi economy, these four are counted as ‘blue chip’ tokens.
Y.FInancial has chosen these four, for now, primarily keep their future growth potential in mind. Interest for the long term is also an indicator that YFIN is insured against volatility and exit scams. Other than long-term growth potential, the business also considers its underlying assets’ yielding potential, liquidity, and the size of the community.
Crypto Holidays – Y Family Day
Crypto has brought some of the most fascinating people and businesses together at one big table. The only celebratory manner consists of day-drinking at conferences or celebrating Bitcoin’s birthday on October, 31st. Some other companies are catching on and are looking to make crypto holidays a bit more mainstream. Introducing Y.Family Day.
Apart from having a right in issues related to governance and the ability to influence the selection of underlying assets, YFIN holders enjoy some other incentives as well. On every ninth day, the transfer of tokens between members goes free of transaction costs. It is on the same day that the platform holds its governance votes. This ninth day is known as the Y.Family day.
The Road Ahead
Many platforms are taking marketing action to show who’s dominant in the industry. Most are simply releasing a MVP and later disappearing. With its Testnet live since October 2020 and version 2.0 coming soon, Y.Financial is on its way to becoming a shape-shifting player in the world of decentralized finance. It would make yield farming more accessible, hassle-free, and fast.
With its focus on high growth-potential assets, the users will be in for long-term commitment. It will reduce volatility. With the right to govern, the investors will be in control of their tokens in their entirety. Altogether, Y.Financial is a package that encourages people to reap the benefits of the DeFi economy without having to worry about how expensive it might become and whether their tokens would be invested in the right areas or not. The road ahead is free of bumps and smooth to ride.