Yield farming has spurred through the rise in the number of users subscribed to decentralized finance (DeFi). Along with the emergence of this new trend in the blockchain industry, a lot of projects have sprung, promising users the ability to earn profit from their idle assets. YFIBusiness Finance is one of them.
YFIBusiness Finance is a yield farming and staking protocol powered by smart contracts that help automate the whole process to help its investors grow their capital. Its liquidity pool is linked to Uniswap’s liquidity providers, the biggest in DeFi, to tap a wider demand and a stronger profit-making power.
Table of Contents
Background
The team behind YFIB.Finance built the platform to offer accessible yield farming options to anyone. There are a lot of other similar projects to YFIB Finance, and some consider the platform another iteration of the yearn.finance project.
The project takes off from the rise of DeFi in the cryptocurrency space. Their aim is to provide a model that is different from the usual services like asset management, cryptocurrency lending and borrowing, token swaps. etc. YFIB.Finance decided to work on building a yield farming platform that could help cryptocurrency owners make the best out of their assets.
For those who are new to the concept of yield farming, it is the process of using your own asset to provide liquidity to other crypto platforms. This is called yield farming because, in this activity, the user transfers his digital assets on different DeFi platforms that can potentially provide him with the best return possible for his assets.
Since the platform is newly-launched, there is still a lot of information about it that is yet to be released by its team. But so far, here are the things that we know.
What is the YFIBusiness Finance Platform?
YFIBusiness Finance is a yield farming project powered by its utility token, the YFIB. Much like many other staking and liquidity mining pools, YFIB collects digital assets from its users to offer in interest-generating pools from pairs with Uniswap, YFII, Curve, Compound, and others.
There are four main pools where the stake of users are linked to. There are parameters for the distribution of stake in these pools. The pools are categorized under the following:
- YFIB Staking Pool
- Liquidity Staking Pool
- Top Yield Farming Pool
- Stable Tokens Pool
YFIB Staking Pool
The highest reward making pool for the YFIB platform. The allocation of YFIB staking rewards in this pool is at 40%. The APY for this pool has recently been increased from an initial 55% APY return up to the 500% APY that it has now.
Liquidity Staking Pool
This is the liquidity pool connected with Uniswap’s liquidity providers. Staking here gives users the opportunity to provide liquidity and earn fees from transactions on the Uniswap platform. The staking reward allocation here is at 20%.
Top Yield Farming Pool
The pool reward mechanism at work in this pool is backed by Compound, YFI, and YFII. The staking reward allocation for this pool is at 20%.
Stable Tokens Pool
This pool is where participants can stake their USDT, USDC, DAI, and TUSD, in order to earn rewards. The allocation of staking rewards on this pool is also at 20%.
YFIB is continuously working on other features of the platform. And according to them, it is the reason why they made revisions on the protocol parameters such as the number of liquidity pools accessible from the platform and the APY returns that are designated for each of them.
Participating in YFIB’s Yield Farming Pools
In terms of user-friendliness, YFIB has made it convenient for anyone using the platform to participate in staking schemes. Users only have to open an ERC-20 compatible wallet or a browser-based wallet like Coinbase, Metamask, and Trustwallet, as well as Ether as payment for gas fees.
How do you farm using the YFIB platform?
1. Access YFIB’s platform at https://www.yfibusiness.finance/dashboard. This gives users access to YFIB’s dashboard, they can also check all the liquidity pools accessible to the platform here.
2. Check which pool to stake in. Users have to remember to perform due diligence before selecting a pool. After they have decided where to stake, they can choose “Enter Farm” on that pool.
3. Next, approve the transaction once the platform asks for authorization in synchronizing the wallet with the contract.
4. Following the transaction confirmation, users can already input the amount of YFIB tokens they are willing to stake.
5. Users have to check the confirmation transaction message and review the details if they are accurate.
Farming rewards are given out to stakers every 24 hours, and they can choose to “unfarm” without any penalty from the platform.
YFIB Token
What backs the whole yield generating function of the platform is its native YFIB token. As of now, there is a total of 30,000 YFIB tokens minted, which can reach up to 50,000 in total supply.
The remaining 20,000 YFIB tokens in maximum supply are locked to be minted soon as reward for participants farming in the platform’s reward pools.
YFIB tokens are used as a medium of exchange, fees payment, and as a means to back the platform’s rewards system.
YFIB can be bought on exchanges like Uniswap, Unicrypt, and could soon be available on CoinTiger, Hotbit, and MXC.
Conclusion
There are a lot of projects on the DeFi space focused on yield farming and liquidity mining. While a lot of options could be a good thing for traders, it can be more difficult for project owners and developers to come up with a feature that separates it from the rest. YFIB.Finance is new, but as of yet, there is not much difference that we can see from the project when compared with other yearn-based protocols.
How they use smart contracts could help distinguish it from other projects. But it remains to be seen how effective they are and whether they are secure. YFIBusiness Finance also plans on implementing a governance protocol soon. Overall, a lot of work still has to be done by the developers in order to ensure that its yield farming options are profitable and can compete with the bigger staking providers in the space.
