Risky DeFi Token Yearn.Finance (YFI) to Launch on Coinbase Pro, the Platform for Professional Crypto Traders

On September 14, 2020, Coinbase Pro (for professional traders) users will be able to transfer  yearn.finance (YFI) tokens into their accounts ahead of scheduled trading. The San Francisco-based crypto exchange noted that support for YFI tokens will be available in all of its supported jurisdictions, but won’t be offered in New York State due to regulatory restrictions.

Coinbase confirmed that as “per previous launches, transfers will open during business hours, Pacific time.” It also noted that its customers are always requesting that the crypto exchange support trading for more digital assets on its platform. However, the exchange claims that all tokens must meet its strict and extensive listing requirements, before they’re considered.

Coinbase recently added trading support for UMA (UMA) Celo (CGLD), Numeraire (NMR), Band (BAND), Compound (COMP), Maker (MKR) and OmiseGo (OMG). The US-based exchange will also be adding support for Loopring (LRC). (Note: for more details about the listing process for YFI, check here.)

Trading support for YFI tokens will only be available to Coinbase Pro users for now. The exchange might consider adding support for Coinbase.com and mobile platforms later on, but for now, these users won’t be able to trade with YFI tokens.

yearn.finance (YFI) is described as a “decentralized” finance (DeFi) platform which aims to offer aggregated liquidity and automated marketing making (AMM) by moving providers’ funds between other so-called DeFi platforms, including Aave, Compound, dYdX, among others.

YFI is the native token that’s used by the yearn.finance platform and ecosystem. Users can earn YFI tokens by offering liquidity to yearn.finance’s liquidity pool. The earned tokens may be used by the holders to take part in governance-related decisions on the platform.

DeFi is an extremely high-risk area of the larger crypto and blockchain space. Many industry participants had voiced concerns about Coinbase adding support for YFI tokens. Tim Copeland from Decrypt had said:

“This is getting pretty crazy. YFI is super experimental and risky. Could be a PR disaster too if YFI suddenly crashed (likely considering all the yield farmers might exit in one go) and the exchange has to explain to its customers all their money is gone.”

In addition to soon getting listed soon on Coinbase Pro, the Yearn Finance team has introduced a new lending protocol, called StableCredit. It aims to combine tokenized debt based stablecoins, along with lending and single-sided automated market makers, in order to provide a fully decentralized lending protocol.

Users have the option of making deposits in USDC stablecoin in order to earn StableCredit USD at a ratio of up to 75%. These assets may then be traded for other cryptocurrencies.


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