Quick summary: Our recommendation is to use eToro to short Yearn.finance. They have the most popular cryptocurrencies on offer, great support, and have an easy system for shorting cryptocurrencies in general.
While there are a lot of options out there for buying YFI, shorting is a different story. Luckily for us here in Australia, we do have a few crypto brokers and exchanges that allow for CFDs and shorting.
One of those brokers is eToro, which we’ll be using for this guide. Let’s get started!
How to Short Yearn.finance in Australia
A quick recap first on what shorting actually is: The main objective of shorting or short selling is to make a profit (of course). The idea is to sell a stock/cryptocurrency hoping it will drop in value so you can buy it back later for cheaper, thus creating a net profit.
Shorting Yearn.finance can be done in 4 easy steps:
1. Choose a crypto trading platform
As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.
You can, of course, use any other crypto broker to follow along, they all work very similarly.
2. Create an account on the cryptocurrency trading platform
Let’s start with just signing up with eToro.
The sign-up process is very quick, as is the verification that needs to be completed afterwards so you can get started.
3. Funding your eToro account
Next is funding your account. You have several options when it comes to depositing AUD into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.
4. Short Yearn.finance
Now for the actual shorting:
- Starting off at the search bar at the top, find Yearn.finance by entering the name or symbol.
- Then on the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
- At the top of the trading interface: Click on sell to short sell the stock.
- Enter the amount for which you want to sell Yearn.finance and click on “Open Trade”.
Once you’re ready to close the trade, hopefully when the value of Yearn.finance has dropped, go to your Portfolio, find the Yearn.finance trade, and click on the red cross to close the trade.
If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.
Congratulations, now you know how to short Yearn.finance!
Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.
Affiliate Disclosure: This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.
Where to Short Yearn.finance (YFI)
Aside from eToro, the other major exchange you can use is Binance.
While Binance tends to be a bit more complex compared to eToro, they do have more cryptocurrencies on offer.
Frequently Asked Questions
Can I short Yearn.finance on Binance?
Yes, you can short Yearn.finance on Binance. They have over 300 cryptocurrencies on offer and specialise in the crypto market. They also have a great app and competitive fees.
Yearn Finance is a collection of products within Decentralized Finance (DeFi). It provides lending aggregation, yield generator, and insurance on Ethereum blockchain. The protocol is maintained and governed by YFI holders by a variety of independent developers.
Andre Cronje began it as a passion-project to automate capital switching between lending platforms. In order to get the best yield, the lending yield fluctuates rather than being fixed. As interest rates fluctuate between these protocols, funds can be automatically moved between dYdX (AAVE) and Compound.
DAI, USDT or USDC can be used to access the service. In return for depositing DAI into yearn.finance the user will get yDAI token. This is a yield-bearing DAI coin.
Curve Finance was later contacted to help it create a pool of yield-bearing USD coins. This pool includes four y tokens: yDAI (yUSDT), yUSDC (yUSDC) and yTUSD. The name is yUSD
Yearn Finance introduced the vault feature following its token launch. It sparked an interest in automated yield farm and is considered to have initiated the category of yield-farming aggregators. The vault will allow users to collect yield farming rewards, and then they can sell it for the assets.
Vaults provide benefits to end users by socializing gas prices, automating yield generation and rebalancing processes, and automatically shifting capital when opportunities arise. Vaults do not require that end users have a deep understanding of DeFi or the underlying protocols. It's similar to a crypto-hedge fund, which aims to increase users' assets.
Yearn Finance was launched on July 2020. Its governance token, YFI (Yearn Finance Intl.), was released to members of the community in a fair launch. Yearn Finance's initial release was delayed because Yearn Finance had not been valued nor raised. This meant that the market did not fully grasp the value capture and was unable to determine its market value.
Yearn Finance continued to attract liquidity, allowing people to easily gain and participate in DeFi. Within two months of its launch, the YFI token went up from $30 to $43,000.
Yearn Finance will continue to be the benchmark for yield aggregators in 2021. Yearn Finance reached an all-time high $91,000 on May 12th 2021. That was alongside the peak of cryptocurrency markets.