YF Link ($ YFL) combines Chainlink’s $ LINK token with the yield farming / liquidity extraction mechanics of Yearn Finance $ YFI. premise of this project was that it would be adapted for use by Chainlink enthusiasts, known as “Link Marines.” Considering that the LINK token itself has performed quite well in 2020 so far with prices ranging from $ 2 to $ 15, both Link Marines and other crypto enthusiasts are of course interested in what YF is. Link and what it had to offer So in this article, we will look at YF Link’s background, features, and how to get your native $ YFL token.

YF Link Background and History

YF Link forked from the Yearn contract from Yearn.Finance ($ YFI) by changing it to accept LINK instead of yCRV tokens. It is a community-based project started by Chainlink enthusiasts, specifically, by a “Bobby Shaftoe” and 4 other anonymous developers who announced the existence of the project and its details in a Medium post. August 2020. Since LINK tokens were required to be locked in order to generate returns, the launch of YF Link is believed to have had a positive influence on LINK prices as demand for these tokens increased. In fact, in the few days after Medium’s posting, $ LINK prices nearly doubled.

YF Link in a nutshell ( credit: YFLINK)

Forerunner – Annual Funding ($ YFI)

YF Link’s precursor, Yearn Finance (YFI), was launched by Andre Cronje on July 17, 2020 as an experiment in yield agriculture and liquidity mining. It works by allowing users to provide funds to a smart contract, which are then automatically distributed among the dYdX, Aave and Compound lending protocols, optimized for maximum performance.

In return, users get performance benefits and acquire YFI tokens. YFI token is used for governance. total YFI tokens that exist are 30,000.

Learn more about Andre Cronje’s insights into the DeFi space in his interview with the FTX Exchange.

How does YF Link work?

YF Link’s YFL token provides liquidity to LINK groups in multiple decentralized finance (DeFi) protocols such as Aave, Balancer, and Curve Finance. Users provide funds by depositing them into these protocols, which then generate performance earnings for depositors. se users, i.e. liquidity providers, also receive YFL tokens as a reward, in turn, these YFL tokens can be traded on exchanges such as Uniswap.

amount of rewards depends on the amount of liquidity provided and the duration of the bet. And although user funds are locked, they can be withdrawn at any time.

Alternatively, some people just speculate on YFL tokens and trade them on exchanges.

concepts

two underlying concepts used in YF Link are yield farming and liquidity mining. Both work together in synergy to incentivize users to provide liquidity. As we will see later, these 2 concepts come together to allow farmers to earn rewards and potentially benefit from these activities.

Yield agriculture

Yield agriculture is a method of using assets that would otherwise be inactive for beneficial purposes. It involves taking assets from users, lending them to different protocols, in exchange for obtaining more assets than were initially provided.

Liquidity mining

Liquidity mining is a variation on yield farming, allowing liquidity providers to earn another governance asset, alongside their usual performance rewards.

YFL token

$ YFL token is YF Link’s native token with a maximum supply of 75,000 tokens. It should be noted that even the creators of YF Link have said that the token should be valued at ZERO.

YFL token is supposed to be used for governance purposes, that is, it allows holders to submit proposals to vote and make decisions. For example, one of the first governance proposals is to have a LINK meme contest.

In the beginning, a total of 6 groups issued YFL tokens, with various parameters. token issuance will last around 15 weeks and most issuances will occur in the first 4 weeks. After the YF Link contracts were implemented, the creators burned the contract keys so that no one can change this broadcast schedule.

YF Link Pools: What’s the difference?

As mentioned in the previous section, when the YF Link contracts were first implemented, a total of 6 groups would issue YFL tokens. Please note that as of August 22, 2020, groups 0, 1 and 2 have exhausted their YFL rewards, this means that you cannot mint any new YFL tokens by betting on these groups.

Group 0 is also called the Genesis group. (15,000 YFL tokens available) – users provide LINK and YFL is returned. This group has exhausted their YFL rewards.

Group 1 LINK Balancer Group (15,000 YFL tokens available) – users provide LINK and YFL is sent to a Balancer group. Users obtain BPT tokens and provide them to the YF Link group. n YFL and BAL are returned. This group has exhausted their YFL rewards.

Pool 2 yCRV Balancer pool (15,000 YFL tokens available) – uses yCRV. Returns include YFL, BAL, Curve Protocol interest, and CRV tokens. This group has exhausted their YFL rewards.

Pool 3 LINK Aave pool (15,000 YFL tokens available) – users provide LINK and deposit it on Aave.com to get aLINK tokens. n you get those aLINK tokens and deposit them in a pool of aLINK Balancer with YFL. From this, users will get BPT tokens that they can bet on the YFL pool. In the end, users can earn interest from YFL, BAL, and AAVE.

Group 4 Governance Participation Group (20,000 YFL tokens available) – This group will start operating on August 26, 2020 at 1400 (UTC). Users have to bet YFL in order to vote on the Government contract for the duration of the voting. Users are rewarded with more YFL tokens.

Pool 5 Unintended Pool (5,000 YFL tokens available) – the team accidentally deployed this pool. Creators will draw from this pool to fulfill their initial mining program obligations and potentially for other purposes to be announced.

conclusion

YF Link is an interesting variant of Yearn.Finance. utility and liquidity of LINK tokens are likely to improve as well. Some analysts even call it the “missing link” between the two most widely used DeFi protocols: Chainlink and Yearn.Finance.

Since its implementation, the project has functioned normally without errors or exploits. You have accumulated an impressive total locked value (TVL) in a short period of time. It can even become the go-to protocol for people looking to stake LINK tokens for rewards in the future.

Decentralized Finance (DeFi) Series – Tutorials, Guides, and More

With content for both beginners and more advanced users, check out our YouTube DeFi series which contains tutorials on the ESSENTIAL TOOLS you need to trade in the DeFi space, for example MetaMask and Uniswap. Plus a deep dive into popular DeFi topics like Reef.finance ($ REEF) and Polkadot ($ DOT)

https://www.youtube.com/watch?v=videoseries

DeFi series on this website also covers topics not explored on YouTube. For an introduction to what DeFi is, see Decentralized Finance (DeFi) Overview: A Guide to the HOTTEST trend in cryptocurrencies.

Tutorials and guides for DEFI ESSENTIAL TOOLS:

For detailed information on other specific DeFi projects, see our DeFi token guides. se are some of our most POPULAR guides:

More videos and articles will be coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel and (for now) FREE Weekly Newsletter so you can be notified as soon as they come out!

information provided in this article is intended for general guidance and informational purposes only. content of this article should not under any circumstances be considered investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly recommend that you do your own research before taking any action. Although every effort is made to ensure that all information provided in this document is accurate and up-to-date, omissions, errors, or mistakes may occur.

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