Cryptocurrency exchange Coinbase has listed Yearn Finance (YFI) on its pro platform, resulting in a 19.52% rally in the yield farming asset.
As explained by Coin Rivet in an article last week, Yearn Finance and its subsequent forks like YFV, YFII and YFL, are all designed to be used in yield farming protocols, which effectively lets users stake the token to earn significant APY.
Trade volume over the past 24-hours has crept above $500,000 as its market cap hovers around the $1 billion mark.
According to an official announcement from Coinbase, YFI will not be available on Coinbase.com or via its mobile apps, although it does state that a separate announcement will be made “if and when” support is added.
On Monday September 14, our YFI-USD order book will enter transfer-only mode, accepting inbound transfers in supported regions. Orders cannot be placed or filled. Trading will begin on or after 9AM (PT) Tuesday Sept 15, if liquidity conditions are met. https://t.co/6UTHK3Htpf
— Coinbase Pro (@CoinbasePro) September 10, 2020
The statement continues: “Trading on our YFI-USD order book will launch in four phases, transfer-only, post-only, limit-only and full trading.”
Trading of YFI will begin on September 15 if liquidity requirements are met. The majority of YFI’s current volume takes place on Binance, while much of it is still exchange on decentralised protocol Uniswap, which has gathered momentum over the past few months.
It’s worth noting that yield farming protocols like YFI are extremely risky, there is a chance that the value of each token will plummet if stakers withdraw capital at the same time, which would result in a severe lack of liquidity.
This marks a risky approach for Coinbase, which has taken a relatively gung ho approach to listing tokens in 2020 when compared to 2017, when they had just Bitcoin, Litecoin, Ethereum and Bitcoin Cash available to trade.
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