Through lending and trading services, the yearn.finance group of protocols, which is based on the Ethereum blockchain, enables users to maximize their revenues on crypto assets.
Yearn.finance is one of the new decentralized finance (DeFi) companies that offer its services entirely through code, doing away with the need for a middleman like a bank or a custodian. It has created a system of automated incentives around its YFI cryptocurrency to do this.
What is the YFi (YFI)?
A protocol called yearn.finance was created to deploy contracts to the Ethereum blockchain and various decentralized exchanges that run on it, like Balancer and Curve.
Users are putting their faith on YFI’s contracts, as well as those in linked contracts on Balancer and Curve, to deploy on Ethereum and deliver the promised services in this way. Earn, Zap, and APY are three of yearn.finance’s services that aim to make it possible for customers to lend or sell their cryptocurrencies.
Users can use Earn to compare lending interest rates from several lending protocols, like Aave and Compound, in order to locate the best deals. In order to receive those interest rates, users must deposit their DAI, USDC, USDT, TUSD, or sUSD on the yearn.finance platform.
Similar to this, Zap lets people make multiple investments with only one click. For instance, a user just needs to perform one action to exchange DAI for yCRV (another DeFi coin), as opposed to three actions on the yearn.finance and Curve platforms. The user will also avoid transaction fees and lost opportunity costs.
Annual percentage yield, or APY, goes through the lending procedures that Earn employs and estimates how much interest a user may expect to earn, on an annually basis, for a specific amount of funds. Read about APY here.
How to Buy YFI Tokens in India?
Step 1 – Sign-Up on WazirX
To start trading the YFI token, you should first create your account by signing up on the WazirX platform. Or you can directly Log-in if you already have an account with WazirX.
Here’s a guide explaining how to open an account on WazirX.
Step 2- Verify your email account and set up your account security.
The following step is to verify your email address. After signing up, you’ll receive a verification link on your email address by which you’ve just created your account.
On clicking on the link, you’ll have two options to assure the security of your account – the authenticator app and mobile SMS (as shown in the image below)
Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 3 – Complete the KYC.
After selecting the appropriate country, complete the KYC process.
Note: Without completing your KYC, you will be unable to trade P2P or withdraw funds on the WazirX app.
Step 4 – Add funds to your WazirX account through P2P.
After linking your bank account to your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will work as funds to buy other coins.
Step 5 – Buy YFI on WazirX
After logging in to your WazirX account, you can select USDT from the “Exchange” tab. You can see all the price charts, order book data, and an order input form on the right side of the screen.
Click “Buy” after entering the amount and checking the total USDT amount to be paid.
Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.
It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the YFI coins you purchased in your WazirX wallet.
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