Hello, wonderful people of steemit, hello professor @kouba01, it is the second day of the steemit Crypto Academy trading Contest week 3 and as a participant today, I will be trading on Yearn Finance (YFI).
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.
What is Yearn Finance?
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Yearn Finance is an aggregator service developed on the Ethereum network. It is a decentralized finance that aims to facilitate access to yield farming strategies using automation to maximize profit for yield farmers. (Yield farming is an investment avenue in the blockchain industry that involves a person to stake or lend their coin so as to get rewarded in the form of interest or transaction fee.)
It can be viewed as a self investment platform that seeks to mobilize funds between different liquidity pools to enable the farmer obtain a maximum return. It uses smart contract to execute orders. Yearn Finance was launched in the first quarter of 2020 initially called iEarn and ever since then, the project has seen huge growth.
Founder of Yearn.finance
The brain behind Yearn.finance is Andre.Conje. He founded it initially as iEarn and after founding the project in February, 2020, he withdrew from contributing to the project and later returned to spearhead the project and his appearance again brought about the rebirth of the project and in July 2020, the YFI token went live.
Andre cronje has also been in the blockchain industry for quite some time now with his reputations earned from his time of service in smart contract ecosystem like CryptoBriefing and Fantom.
About Yearn Finance Token YFI
YFI is the native token of Yearn Finance and it's price is $20,754.93 with a market cap of $760,413,669 and a trading volume of $117,714,766. It has a circulating supply of 36,637.72 YFI tokens out of a Maximum supply of 36,666 YFI tokens. It is ranked no. 94 on coinmarketcap. Some other details of YFI are as follows
screenshot from coinmarketcap
| sn | fundamentals | value |
|---|---|---|
| 1 | Explorer | etherscan.io, bscscan.com, hecoinfo.com, ftmscan.com |
| 2 | Link | Yearn.finance |
| 3 | contract address | HECO: 0x0bc529c00c6401aef6d220be8c6ea1667f6ad93e, bep20: 0x88f1a5ae2a3bf98aeaf342d26b30a79438c9142e |
| 4 | All time High/Low | $93,435.53 / $739.44 |
| 5 | Market Dominance | 0.04% |
YFI market place
Some places to trade YFI token include
| sn | Exchange | Pair |
|---|---|---|
| 1 | BINANCE | YFI/USDT, YFI/USD, YFI/BTC, YFI/BUSD, YFI/EUR |
| 2 | COINBASE | YDI/USD, YFI/BTC |
| 3 | KUCOIN | YDI/USDT, YFI/UST |
| 4 | BITHUMB | YDI/KRW |
| 5 | GATE.IO | YFI/USDT, YFI/ETH, YFI/USD |
| 6 | KRAKEN | YFI/AUD, YFI/GBP, YFI/XBT, YFI/USD, YFI/EUR, YFI/ETH |
Why you are optimistic about this token today, and how long do you u wish it can rise.
Today, I am optimistic about yearn finance because of the following reasons
1. There are multiple earning streams on Yearn Finance
Yearn finance offers its investors diverse ways by which they could monetize their crypto holdings. The platform aid investors to maximize profit from their domant crypto holding. This multiple earning streams keeps on attracting new investors hence ensuring YFI token long term growth.
2. Yearn Finance acts like an Extension Path
Yearn Finance is a special Defi project such that it has the ability of interconnecting other projects. Some of the projects that has been loooped by Yearn Finance include Pickle, Cover, Sushiswap, Cream and Akropolise. This funtion of the Yearn Finance has helped increase its use case and significantly will continue to positively affect its price in the future.
3. Low Token supply
One of the things that has kept YFI token in the moon is it's low token supply. As we know, when the supply is lower than demand, then the price will be definitely high. Already, this low supply volume of YFI token which is pegged at 36,666 YFI has set Yearn Finance above other Defi projects and will still contribute to its increase in the future as more tokens are being minted.
How to analyze the token? (This can technical analysis and trading strategies learned from professor's courses) - This section is very important.
For today's trading excercise, I will use KUCOIN exchange and I will trade on YFI/USDT pair. The analysis tools I will employ are Tripple exponential moving average (TEMA) and fibonacci retracement.
Tripple exponential moving average (TEMA) is a kind of moving average that seeks to eliminate noise or page which is common with other types of moving averages. It aims to bring about clear signal by Smoothening the price flunctuation. TEMA gives an improved output since it is a combination of three Exponential moving averages (EMA) and while computing it, the lag is subtracted hence giving a better indication than other moving averages.
• Fibonacci Retracement: Fibonacci Retracement refers to horizontal lines that tries to expose places where there is a possibility of the price to reverse direction. It Shows this points in the market using support and resistance lines. Traders tend to buy at a Fibonacci support level at the Retracement when the the market is in an uptrend.
Firstly, I open the chart of YFI/USDT on tradingview and then add the both indicators I wish to use.
On adding the Double TEMA cross, I could observe that the longer period TEMA (55) has crossed over the shorter period TEMA and gone above. This is a downtrend indication. Since the market is ulin an uptrend, then it could be a bearish reversal.
screenshot from tradingview
Next, I input the Fibonacci Retracement placing the first point at the current highest high and the second point at current lowest low. With this Fibonacci levels, I could obtain levels where I could enter, then I also setup my take profit and stop loss using the fibonacci retracement levels that has exposed possible support and resistance areas.
screenshot from kucoin mobile app
screenshot from kucoin mobile app
4. Your plan to hold it for a long time or when to sell. Do you recommend everyone to buy this token? Give reasons for your answer.
YFI token is a good token considering what
the project that is backing it has to offer. I believe that YFI token is yet to see higher heights irrespective of it price above $20,000. I will be holding on to my YFI token today because the project behind it is the best of it's kind in the blockchain industry. Also, with its very low supply amount, it is a certainty that at the minting of the last sets of YFI tokens, YFI could be almost too costly to purchase and hence, I could recommend someone to buy and hold today.
