Have you heard of decentralized finance (DeFi)? What about YFPO?
If you follow cryptocurrency, then you have probably heard of DeFi. It’s a revolutionary new cryptocurrency technology that will take over traditional, centralized finance.
This article will describe DeFi in basic terms. We will also cover one of the more interesting platforms that will be launched under the DeFi umbrella – Yearn Finance Power (YFPO).
As mentioned earlier, DeFi is a revolutionary concept in finance. It takes all the traditional financial tools that are centralized and controlled and gives them back to the people.
This has a few huge advantages over normal finance. These advantages include the following:
A huge advantage of DeFi over traditional finance is that it is much more secure.
Sure, your bank probably is not hacked all that often, but it does happen from time to time. Remember the Equifax data breach?
That does not happen with DeFi for a few reasons.
First of all, the network is publicly accessible, so all data is already there. It’s not attached to your real name, but anyone can see the transactions if they want to see those transactions.
The next reason that DeFi is more secure is because it generally has higher security standards than centralized finance. The reason is because your private keys are not known by anyone – not even the network the DeFi token uses knows your private key.
Again, that is security you will not find in traditional finance.
Finally, DeFi generally has immutable transactions that operate on smart contracts. A smart contract is a contract that automatically fulfills when the parameters are met. This means you do not have to worry about a transaction getting reversed for whatever reason the central authority determines.
In other words, it’s a self-operating system. No one controls it nor does any single entity have the power to stop a transaction.
Another huge benefit of decentralized finance is that the fees are lower. It costs about $30 to send a wire transfer.
With DeFi, it costs a couple cents for that same transfer of wealth.
That’s just for transfers. Other aspects of DeFi are also cheaper than centralized finance. Loans are generally more affordable and so are the fees associated with purchasing assets.
Perhaps the biggest benefit of DeFi is the speed of transactions. It can take months to get loan approval, but with DeFi it takes a couple minutes for approval and the rates are about the same.
The same applies to transfers – it takes a week to transfer money from one bank to another. With DeFi, that transfer would take a couple seconds at most.
As for gambling (a huge aspect of DeFi), once the event is over the contract fulfills and winnings are disbursed to the winning side’s wallet.
It’s fast, easy, and secure.
The final aspect we like about DeFi is the control that it gives the customer. Traditional finance places all control in the hands of the company.
You do not actually own that money in your bank account – the bank uses it for their own investments.
DeFi is different because it’s decentralized. You actually control your assets – if the bank you use goes bankrupt, then it’s a huge concern in traditional finance.
With decentralized finance, you simply move your cryptocurrency to another company offering the same services.
Plus, it’s transparent because it’s on the blockchain. This means you have access to all your data. You can check the most interesting DeFi projects.
Yearn Finance Power (YFPO) token is an app built on the Ethereum platform. This makes it an ERC-20 token.
It’s more than just a token, though. YFPO will allow users to borrow tokens, stake tokens, and even vote on issues relating to the management of YFPO itself.
It’s similar to yield farming, but it isn’t quite yield farming. You deposit cryptocurrency to help the security of the token itself whereas yield farming is basically investing in a fund that earns money.
We will focus on the staking aspect of YFPO because that is the primary interest in YFPO.
Is YFPO legit or is it a scam?
At the moment, YFPO appears legitimate. Cryptocurrency experts are touting it as a great option for staking tokens and earning some yield.
What makes YFPO great?
It’s another staking cryptocurrency, but the great part about YFPO is that it is still in pre-launch. This means that you can deposit Ethereum onto the platform and earn a profit when the price inevitably jumps after the launch of the token.
We also like the team behind YFPO. It’s led by Louis Baker – a serial entrepreneur in the world of cryptocurrency and current CEO of Spectre Blockchain Limited.
For those that don’t know, Spectre Blockchain Limited launched a previous cryptocurrency called TopCoinFX.
Well, that about covers it for why we think YFPO will be a revolutionary token in DeFi. It offers staking with yield of up to 80% annualized percentage returns (APR). And it’s run by a successful cryptocurrency CEO – Louis Baker.
Additionally, the token has not actually launched at the moment, so this makes it perfect to enter on the ground floor of an excellent token.
With all that in mind, YFPO is the type of cryptocurrency that you do not want to miss out on. It has the potential to be one of the leading tokens in the future DeFi revolution.