Since YFI continues to trade at a higher price than Bitcoin (BTC), the community has proposed a split that would multiply the total supply of the token.
What is behind this: 1 YFI = 1.127 Bitcoin?
At the time of writing, the DeFi token is valued at $ 13,340 while the dollar value of Bitcoin is currently at $ 11,835. YFI was trading at an all-time high (ATH) of $ 13,560 today before falling back to current price.
What is YFI? … and what does yield farming actually mean?
Andre Cronje published yEarn.Finance (YFI) as a native token on July 17th of this year, as an attractive option for so-called “yield farming”. There are currently two different types of yield farming:
By lending cryptocurrencies
The simplest, but also less profitable, possibility of yield farming is to lend cryptocurrencies on DeFi platforms. The interest earned for this is paid by those who borrow crypto currencies. Different platforms have different interest rates – getting the most out of these interest rates is known as yield farming.
By providing liquidity
On decentralized exchanges like Uniswap, users can act as market makers and provide liquidity to a pool so that cryptocurrencies can be changed without major price fluctuations. For this service, “yield farmers” are rewarded with different fees depending on the trading pair.