Before the advent of yield farming, users used to stake individually with every protocol and learn about various projects. With the Yearn project, users didn’t have to shuffle through multiple DeFi sites to maximize profits with yield farming. Yearn fixed this issue by integrating various blockchain protocols, so the users need to stake token just once with Yearn to participate in the various interest-yielding blockchain protocols.Introduction to Yearn.Finance
Yearn Finance is a DeFi Platform where users can deposit and stake their ERC20 tokens. The platform is a liquidity pooling eco-system with the collection of various DeFi products where one can invest funds to earn returns that are much higher than traditional savings and investment services.
So how does the Yearn.Finance work? This is not complex to understand – when one provides liquidity or deposit their virtual currency on the platform to enable lending, it gives rewards. The platform is empowered by the Ethereum (ETH) blockchain. When the user deposits his virtual currency, the system distributes it to various DeFi platforms, for example, Compound or Aave. This is a high-risk and high-reward model because different yield farming systems have different earning ratios.Introduction to DiFy.Finance
So, what is so different about the DiFy.Finance if the above system is good already? The issue is the governance which doesn’t seem to be decentralized completely. The system has been accused of not having a fair governing structure since most of the powers were with the founder. This is where the DiFy.Finance comes into play!
DiFy.Finance is a next-generation Yearn Finance Fork that is part of the larger trend of decentralized finance. The platform is completely decentralized and provides autonomy to the users. It is focused on building decentralized financial instruments on top of the smart-contract-enabled cryptocurrencies.DiFy.Finance’s Ecosystem
DiFy is the smartest way to yield farm. All one needs to do is deposit their coins which will be invested in the best and high-return DeFi platforms, like AAVE, Compound, DyDx, and more. In return they let users earn bonus YFIII which is the official coin of DiFy.Finance.
YFIII specifically is an aggregator of cryptocurrency lending platforms, same as the platform it was forked from — yearn.finance. It allows user to deposit their cryptocurrency, which is converted into yTokens — on-blockchain obligations that are secured by collateral in a different cryptocurrency. These tokens are then automatically parked in different DeFi lending services in order to maximize the lenders’ profit in the form of interest.
YFIII’s unique advantage, and the reason for forking away from YFI, is to provide a more optimized crypto lending experience for mobile platforms.
YFIII’s maximum supply is limited to 30,000 tokens, all of which are set to be openly distributed among the direct participants of the ecosystem with no pre-sale/ICO stage. According to the team behind the project, none of the YFIII tokens have been pre-allocated to the team members.Features and Security on DiFy.Finance Network
YFIII, like the project it is based on — yearn.finance — is built on top of the Ethereum blockchain, meaning that its network is secured by the same hash function as ETH — Ethash. Ethash is a proof-of-work function that belongs to the Keccak family of hash functions.DiFy.Finance — Farm:
Farm offers cryptocurrency holders to pool their assets together to provide a large pool of liquidity for everyone who wants to exchange this asset. As a return, they receive a lucrative reward.DiFy.Finance — Stake:
It is a modern platform that allows DiFy.Finance and YFIII token holders to store their assets in a specially designed contract. The storage percentage is set automatically depending on the price of the underlying assets and the number of assets in the poolDiFy.Finance — Borrow :
DiFy.Finance ecosystem is borrowing. Borrowers can borrow assets in an overcollateralized (perpetual) way by selecting USDT (Tether), Ethereum (ETH), or DAI, and earn YFIII as a reward for using the protocol.DiFy.Finance — Vote :
Vote offers a decentralized platform that allows the community to perform on-chain voting. All this voting data is recorded on blockchain which acts as a decentralized, immutable ledger, without any rigging.DiFy.Finance — Vault :
Vault is a protocol that automates yield farming. It uses AI and BigData to look for innovative farming strategies, with the objective of maximizing yields for the community.Summary
YFIII’s unique advantage, and the reason for forking away from YFI, is to provide a more optimized crypto lending experience for mobile platforms. Also, its Farm, Stake, Borrow, Vote, and Vault features that run on state-of-the-art technologies, make it a one-stop-shop and preferred DeFi platform.