Centralized exchanges, once the primary platforms for trading and storing crypto tokens, have fallen out of favor with many investors in recent years. The collapse of high-profile exchanges like BlockFi And FTX played an important role in this change, as crypto enthusiasts realized that centralized platforms could expose them to significant risks: if a centralized exchange goes down, it is possible that investors could lose all their tokens hosted thereespecially in cases where the tokens have been put into play.
Indeed, centralized exchanges that force investors to lock up their tokens, thereby inadvertently preventing people from accessing their funds during times of unrest, may increasingly resemble traditional financial institutions operating in the crypto space. With fluctuating markets and widespread liquidity problems in recent months, and as regulators are preparing to exercise greater control over exchangeIndeed, investors have even more reason to seek alternatives with a greater degree of decentralization.
This is where YieldFlow comes in. Launching in 2023, YieldFlow offers customers the opportunity to earn rewards from yield farming And staking— practices that can be lucrative but generally require users to surrender and lock their tokens on a platform for a specified period of time, without those tokens leaving their possession. YieldFlow is able to accomplish this as Challenge protocol through the use of smart contracts, which enable anonymized transactions and clients’ full custody of their tokens throughout. Additionally, Yieldflow’s security platform is audited by Certifiedthe leading smart contract auditor, adding an extra layer of robustness to the Yieldflow infrastructure.
Delivering the benefits of centralized exchanges in a DeFi environment
Despite the disadvantages mentioned above, centralized exchanges have many advantages. Perhaps above all, these platforms offer a simple and easy-to-use interface for users. In most cases, with just a few clicks and entering some basic information, customers can quickly begin accessing the services of a centralized exchange. Much of the complex procedures are taken care of behind the scenes. Centralized exchanges also aim to provide security, although there is a limit to this when exchanges are increasingly susceptible to total collapse.
YieldFlow is able to provide security, trust and anonymity without the drawbacks of a centralized service. To do this, it uses smart contracts. The company’s white paper states that this goes beyond simply “hodling“crypto tokens and that it aims to “grow your portfolio in a secure, anonymous and decentralized way” by removing technical complexity for clients, being responsive to clients’ risk and reward profiles, automating liquidity mining, and more. Client assets are automatically routed to different protocols through smart contracts, eliminating complexity for clients who would otherwise have to manage this system themselves.
The developers of YieldFlow claim that it can connect to any yield or revenue generating protocol compatible with the Ethereum Virtual Machine (EVM) to easily connect clients to different platforms. At launch, YieldFlow provided native staking of Layer 1 blockchains, with additional support added over time. $YFlow, the YieldFlow protocol token, is used to generate staking rewards, reduce withdrawal fees, and increase commissions, while also allowing users to create proposals and participate in protocol governance.
Step by step: how to use YieldFlow
The first step to launching your investments and passively growing your portfolio with YieldFlow is to create a Web3 connection. Visit the website, yieldflow.com, and click on the buttons labeled “Start Now” in the center or top right of the screen. You may also want to learn more about the latest news from the platform, or browse the whitepaper or tokenomics documents for a deeper technical understanding of how YieldFlow works and what it can accomplish.
Creating a YieldFlow connection involves interactions only with smart contracts verified and audited by third parties. YieldFlow is excluded from any contract regarding client assets. A key aspect of the YieldFlow account creation process is that it does not specify know your customer (KYC) requirement. The reason is that it only uses cryptocurrencies and does not have gateways for fiat assets.
Clicking on “Start Now” will take you to the main YieldFlow portfolio interface:
Before you can take advantage of any of the services listed on the left side of the screen, you will need to connect a wallet. Use the button in the lower left corner of the page to begin the login process. Any wallet compatible with Ethereum will work; YieldFlow automatically offers the option to connect a Coinbase or WalletConnect wallet.
Clicking on Coinbase or WalletConnect will display additional prompts to help you connect using apps or desktop platforms:
You will then need to follow the instructions provided by Coinbase or WalletConnect in order to complete the process of linking your wallet. This may require logging into separate accounts and confirming certain details through an app.
Once your wallet is connected, the bottom left corner of the YieldFlow page will automatically update to include both your wallet information and your balance.
At this point, you can start using YieldFlow products, listed on the left side of the screen. Click on YFlow to open a menu allowing you to buy or stake $YFlow without lock-in or with lock-up periods of up to 3 years.
Follow the instructions on this page to approve, wager, void wager, or claim rewards for each of the wagering categories.
By clicking the “Staking” button on the left tab, you can view a list of non-YieldFlow products to stake. As of this writing, these include Polygon, Ghost, AaveAnd The sandbox. Each is listed with its current APY. The activation process is similar to $YFlow tokens.
Clicking on “Liquidity Pool” in the left menu will open a list of crypto token pairs for you to investigate. Again, APY is listed for each pair. These pairs include LINK/ETH, MATIC/ETH, USDT/ETH, MANA/ETH, SAND/ETH and others as of this writing.
Helpfully, YieldFlow provides links allowing you to directly purchase the tokens included in each pair on this page.
The “LP Token Staking” button displays a list of assets staked in the liquidity pool. They are sorted by name, APY, staked status, staked liquidity, reward, and end of pool data.
Finally, the “Loan” button displays a list of loan bundles that offer guaranteed returns with a base APY for each included on the page.
YieldFlow also offers an affiliate program. By clicking on the “My Affiliate” and “Leadership” tabs under the “Affiliate” menu on the left side of the screen, you get information relevant to this program.
The “My Affiliate” page provides users with a referral code to give to friends in order to earn commissions when others join YieldFlow. The page displays the total amount paid, total pending payment, number of users who have been referred from this account, referral level, and additional information. The Leadership page is an updated ranking of YieldFlow users by referrals.
Returning to the main portfolio page provides a quick overview of total assets, estimated annual yield, and a list of assets staked by performance for easy tracking. There is also a way to search for help, a way to view the whitepaper, a way to disconnect the wallet you have connected, and a way to change chains between Ethereum, Fantom, Polygon and Referee one.
- YieldFlow launched in 2023 as a DeFi platform and alternative to centralized exchanges.
- While centralized exchanges expose customers to security risks in the event of a collapse, as well as unpredictable liquidity, inflexible staking rules, etc., YieldFlow aims for a seamless user experience governed by trust, security and decentralization.
- Using YieldFlow is simple, especially compared to complex DeFi protocol competitors.
- To start using YieldFlow, users simply visit the platform’s website and create an account. They will need to link a crypto wallet from Coinbase or WalletConnect. At this point, they can begin using YieldFlow’s staking, lending, and other products.
- YieldFlow is crypto-only and does not have a fiat gateway, so it does not require KYC protocols, thus speeding up the account onboarding process.