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In the complex world of economics, recessions are a common concern, and knowing what they are matters. But what exactly is a recession, and why is it important to understand? A recession is a significant economic downturn that affects individuals, businesses, and entire nations. It's more than a financial term; it's a real-life event that can impact us all.

In a world where economic stability matters to us all, this knowledge is essential. In this article, we'll explain what a recession is and why it's important for everyone, whether you're an economist or just someone trying to navigate the modern world. Let's unpack what a recession is and explore why it matters.

The economic aspects of a recession

To grasp the significance of a recession, let's take a look at its economic aspects. We'll begin by looking at key economic indicators, like Gross Domestic Product (GDP).

GDP is like an economic health check. It measures the total value of goods and services produced in a country. When GDP shrinks, it's often a sign of a looming recession. By monitoring GDP, economists gain a better understanding of economic ups and downs.

Economic growth, measured by GDP, plays a vital role in preventing recessions. It creates jobs, helps businesses grow, and boosts consumer confidence. It goes without saying that a strong economy is better at handling tough times.

How recessions affect businesses and industries

When a recession hits, it affects businesses and industries in various ways:

Decreased consumer spending

In a recession, people usually cut back on non-essential spending. This hurts businesses that rely on such purchases.

Decline in production and sales

Less spending leads to less production and fewer sales. Businesses may end up with too much inventory and unused equipment.

Job losses and unemployment

Businesses struggling in a recession often have to lay off workers. This leads to more people without jobs, which is tough for families and communities.

Bankruptcies and closures

Some businesses can't survive a recession's pressures and go bankrupt or close. This can affect entire industries.

The COVID-19 pandemic showed how a global recession can be triggered. Lockdowns, travel restrictions, and supply chain problems disrupted businesses worldwide, requiring governments to step in and help.

Identifying the causes and indicators of a recession

By understanding these causes and economic indicators, people and policymakers can take timely action to prevent or deal with recessions and highlight the value of informed decision-making in our connected global economy.

Causes of a recession

Recessions are not random occurrences, they often stem from a combination of economic factors, financial market fluctuations, and global events. By understanding these causes, people are often better able to anticipate a looming recession and mitigate its effects. 

First and foremost, recessions often have roots in economic imbalances, such as excessive debt, inflationary pressures, or overproduction. When these imbalances become unsustainable, they can trigger a recession.

On that note, the health of financial markets and the housing sector is closely tied to the overall economy. The bursting of housing bubbles and disruptions in financial markets, like banking crises, can set the stage for economic downturns.

And lastly, events like geopolitical conflicts, natural disasters, or global health crises, as witnessed during the COVID-19 pandemic, can have ripple effects that lead to recessions. After all, the global economy is interconnected. 

Economic indicators that signal a recession

Economic indicators act as early warning signals, helping us identify the onset of a recession. These act as data points that provide insights into the state of an economy and serve as barometers for assessing economic health.

Below are several examples of key indicators:

Yield curve inversion

This occurs when short-term interest rates surpass long-term rates, often signalling an impending recession.

Unemployment rate

A rising unemployment rate can indicate economic distress as businesses cut jobs in response to slowing growth.

Consumer confidence index

A drop in consumer confidence can foreshadow reduced spending, which can lead to economic contraction.

Stock market performance

Plummeting stock market indices can signal investor pessimism about future economic prospects.

Recessions vs depressions

We’ve all heard of The Great Depression in the 1930s, but was this a recession or a depression? 

A depression is a severe and long-lasting economic downturn. It's marked by extensive declines in various economic sectors, often lasting for years or even decades. Much like recessions, depressions bring widespread unemployment, significant drops in consumer spending and business investments, and a massive decrease in GDP.

However, they differ in a number of ways, namely the magnitude and duration, the impact it has on business, jobs, and the GDP, and, typically, how the government responds. 

The key difference between a recession and a depression is how bad and how long they last. Recessions are shorter and less severe, typically lasting a few months to a couple of years. Depressions, on the other hand, are much more extreme and can drag on for years or even a decade or more.

Depressions also hit businesses, jobs, and GDP much harder than recessions. In a depression, businesses struggle to survive, unemployment soars and GDP takes a nosedive to historic lows. While recessions hurt, their effects are usually less severe.

Governments respond differently to recessions and depressions. Depressions often lead to major government intervention, including big stimulus packages, bank rescues, and public projects to kickstart the economy. Recessions may also prompt government action, but it's usually not as extensive or urgent.

How to prepare for a recession

Unfortunately, recessions form an integral part of economic cycles and are inevitable. Fortunately, there are some steps individuals can take to better buffer themselves against the harsh effects of an impending recession. 

Here are two of the most important steps:

Build an emergency fund

Start by creating a sturdy emergency fund. This fund should cover at least three to six months' worth of living expenses and acts as a safety net in case of unexpected job loss or financial crises.

Minimize debt

Simplify your finances by reducing debt and cutting non-essential expenses. Clearing high-interest debts and trimming unnecessary spending can free up resources to tackle more essential needs.

Securing income and job stability becomes equally important as the economy faces uncertainty. Here are several strategies to ensure you maintain job security. 

Upskilling 

Invest in your skills and stay adaptable to changing job demands. Continuous learning and gaining skills in demand boost your employability and resilience in a shifting job market.

Networking 

Cultivate a robust professional network. It can provide job leads, referrals, and opportunities when times are uncertain. Networking increases your chances of finding new employment or additional income sources.

Diversifying sources of income

Explore multiple income streams beyond your primary job. Consider part-time work, freelance opportunities, or passive income ventures. These can help soften the blow of a recession.

In an unpredictable economic world, these steps give individuals and households financial preparedness and adaptable income strategies and can provide a sense of security and resilience in tough economic times.

Closing thoughts

Understanding recessions, its indicators, and its real-world impact is essential. Key points include recognising economic aspects like GDP and understanding how recessions affect businesses. 

Identifying causes and signals empowers proactive responses while distinguishing recessions from depressions clarifies their severity and the need for government intervention. Practical steps, like building emergency funds and upskilling, boost resilience. In an uncertain economic world, knowledge and preparedness are our reliable allies for navigating recessions successfully.

This leading top 5 cryptocurrency has made waves throughout the crypto industry and remains the top favorite stablecoin on the market. With often times the biggest trading volume in a day, Tether has established itself as an integral part of the crypto industry. Let's unpack more about the digital currency, Tether.  

Since the advent of digital internet money, there has been a wide growth in usage as well as outcry over the dangers of using this form of currency. While more traditional investors scorn the volatility associated with cryptocurrency markets, many other communities around the world have for the first time been able to access financial services, only needing an internet connection instead of lengthy bank account applications.

When it comes to the underlying security and transparency that digital currencies can provide, it directly tackles an infringing problem that the traditional currency markets regularly deal with. While many claim Bitcoin, and digital currencies in general, to be "risky" and a bubble, the truth is that the new age payment services have brought a multitude of results to an outdated system.

What Is Tether (USDT)?

Tether (USDT) is a cryptocurrency pegged to the US dollar, otherwise known as a stablecoin. Stablecoins hold the value of the fiat currency or commodity they are pegged to on a one-to-one ratio. Tether is the world's first stablecoin, originally launched for trade in 2014 under the name Realcoin.

While Tether was initially launched on the Omni Layer on the Bitcoin blockchain, it has since become compatible with a number of other blockchains, including Ethereum, TRON, EOS, Algorand, Solana, and the OMG Network.

A stablecoin requires the circulatory supply to be matched by funds stored in a reserve account. Tether uses a combination of commercial paper, deposits, cash, reserve repo notes, and treasury bills to maintain the circulating value. In the past there has been some speculation regarding Tether's backing, however, this has not affected the stablecoin's increasing popularity and buying power.

The core concept of Tether is to provide a digital asset with a stable market price that can harness the power of blockchain technology and the benefits of cryptocurrencies without incurring any of the volatility associated. You can visit the Tether site to gain a more thorough understanding of the intricacies of the coin.

What's The Value Of Tether?

While most cryptocurrencies have a value attached to their specific supply and demand, stablecoins are pegged to a fiat currency or commodity. This means that the value will remain consistent with the value of the fiat currency or commodity it is pegged to, generally this is on a 1:1 ratio.

For the case of Tether, the value will always reflect that of 1 US dollar. While the value remains the same, it is necessary to report that the stablecoin has managed to become one of the most widely traded cryptocurrencies on the market.

Who Created Tether?

As mentioned above Tether was initially called Realcoin when it was launched in 2014 and was created by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins and software developer, Craig Sellars. It later changed its name to USTether, eventually settling on USDT.  

All three co-founders have profound experience within the crypto industry, each co-founding and actively involved in several cryptocurrency and blockchain projects.

The business has also created a number of other stablecoins solving the volatility problem across numerous markets, notably a Euro-pegged Tether coin (EURT), a Chinese Yuan-pegged Tether coin (CNHT), and a gold-pegged Tether coin (XAUT).  

How Does Tether Work?

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Tether does not have a blockchain of its own on which it operates. Instead, it operates as a second-layer token on top of other already establish blockchains, such as Bitcoin, Ethereum, EOS, Tron, Algorand, Bitcoin Cash and OMG.  

Tether still functions like any other cryptocurrency, being stored and maintained through wallets specific to the blockchain it is built on. Note that you cannot send USDT built on the Ethereum blockchain to a Tron-based wallet, it must remain on the relevant, same blockchains. The result of this would be lost coins.

The circulating supply of Tether is required to always be backed by the same amount of US dollars held in a reserve account. These reserves can also be made up of other real-world cash equivalents, assets, and receivables from loans.

Providing a stable digital currency in an otherwise relatively volatile market, Tether allows users to make USD trades, both internationally and locally, without any concerns over price movements. It also provides a valuable hedge against markets experiencing sudden or dramatic price dips.  

What Is USDT?

USDT is a stablecoin pegged to the US dollar on a 1:1 ratio. Created under the Tether brand, USDT is the most widely used stablecoin on the market today. There is an infinite supply of USDT available, with roughly 72.5 billion in circulation at the time of writing.  

USDT provides a safe haven for investors when markets go through major downward price trends, offering a stable price to move the value to without having to liquidate the digital assets to cash.  

How Can I Buy USDT?

If you would like to incorporate Tether (USDT) into your crypto portfolio you can do so easily through the Tap mobile trading app. After completing a simple KYC verification, users can gain access to a number of crypto markets and can store the digital assets in our unique, integrated crypto wallets.

The potential for blockchain and cryptocurrencies is vast. With the help of the Tap mobile app, you can manage your crypto portfolio and fiat on-the go while also utilising real world use cases like Tap prepaid card that offers payment access to over 40M+ merchants worldwide.

1inch is a cryptocurrency trading tool for traders, allowing them to quickly find and access competitive prices on decentralized exchanges (DEXs) using its innovative 1INCH token, which provides both utility and governance functionalities to token holders.

What is the 1inch network?

The 1inch network is a decentralized exchange aggregator that assists crypto traders in finding the best prices and lowest fees for their transactions within the DeFi (decentralized finance) sector of the cryptocurrency market.

Decentralized exchanges use self-operating smart contracts to enable trades between buyers and sellers, utilizing a non-custodial infrastructure. This allows for seamless transactions while maintaining the utmost security of funds. 

While these exchanges offer heightened security, this does not always lead to heightened liquidity, which can result in what is called slippage. This is where there is a discrepancy between the expected price of a trade and the actual price once executed. The 1inch protocol helps to avoid this problem and other market inefficiencies by joining together trading activity from multiple markets and combining liquidity.

In essence, the DeFi space is notorious for fast-changing prices and transaction fees for crypto assets, and 1inch solves this problem. Instead of traders having to manually resource and compare prices across DEXs, the 1inch network gathers real-time pricing data, including gas fees, from several top exchanges and presents this information to the trader. These exchanges include the likes of 0x, SushiSwap, Uniswap, and Kyber Network. 

The network is fueled by the 1INCH token and ERC-20 token that provides governance rights and participation in the network's expansion. The token serves as both a utility token and a governance token on the network allowing holders to vote on key protocol parameters.

Who created the 1inch platform?

1inch was founded by Surjey Kunz and Anton Bukov during the ETHGlobal New York hackathon in May 2019, built on the Ethereum blockchain. The pair had previously entered hackathons together, winning awards along the way. 

Prior to this endeavor, Sergej Kunz had a wealth of experience in programming and development. He was a senior developer at Commerce Connector, coded for Herzog agency, directed projects with Mimacom consultancy, and worked in both DevOps and cybersecurity roles at Porsche.

With nearly two decades of experience in software development and five years specialized in decentralized finance (DeFi), Anton Bukov has become a seasoned expert, contributing to projects like gDAI.io and NEAR Protocol.

In August 2020, 1inch received $2.8 million in funding from Binance Labs, Galaxy Digital, and several other firms before raising a further $12 million in December from prominent firms including ParaFi Capital and Pantera Capital. A year later, 1inch received $175 million in another funding round led by Amber Group. 

How does the 1inch Protocol work?

In its most basic form, 1inch operates in a similar way to prevalent travel booking sites in that the protocol collects and compares crypto prices and transaction fees from several decentralized exchanges. The platform uses three prominent protocols: the aggregation protocol, the liquidity protocol, and the limit order protocol.

The aggregation protocol that factors in gas fees

By utilizing 1inch, traders have the convenience of trading from a single platform while being exposed to the lowest trading fees and best prices across several DEXs. Their Pathfinder product not only finds the top trading routes across several markets but also considers gas fees. The aggregation protocol will automatically factor in the gas fees when establishing the best price routes.

For instance, the complex protocol can break down single trades across multiple DEXs in order to provide the best market price. Finding the most efficient swapping routes might include converting a cryptocurrency to a stablecoin and then finding the best crypto prices across multiple exchanges (factoring in low trading fees) before executing the original trade. 1inch takes care of the complex backend routing processes while the trade effectively executes one trade at the best price.

The liquidity protocol for liquidity providers

The platform's liquidity protocol incorporates a next-generation automated market maker (AMM) that not only provides impressive opportunities for liquidity providers but also protects users from front-running attacks typically associated with liquidity pool trading.

The liquidity protocol allows users to earn passive income from depositing their cryptocurrencies into the relevant liquidity pools and earning LP tokens in return. LP tokens can be staked or exchanged, while the cryptocurrencies in the liquidity pools can be used for transactions made by liquidity providers utilizing the 1inch exchange, a decentralized exchange.

To engage in the liquidity protocol or the 1inch exchange, users simply need to connect their wallet and select the liquidity pool (trading pair) they wish to provide liquidity. Additionally, as the decentralized exchange aggregator does not store any crypto assets on its server, users are never required to pay a withdrawal or deposit fee when using the 1inch exchange services.

The limit order protocol for decentralized exchanges

Considered one of the "most innovative and flexible limit order swap opportunities in DeFi" 1inch’s limit order protocol allows traders to place more advanced, conditioned orders to automatically guarantee their profits at certain prices or avoid losses.

Alongside the flexible limit order functionality, the protocol also offers features such as dynamic pricing, extra RFQ support, and powers various implementations.

What is the 1INCH token?

The 1INCH token is an ERC-20 token that serves as a utility and governance token for the platform.  On top of functions like spending, sending, holding, and staking, the 1inch token also provides voting rights to token holders on any proposed updates to the protocol. 

How can I buy the 1INCH token?

Users can easily incorporate the 1INCH token into their portfolio through the Tap app's secure platform. The easy method allows anyone with an account to engage in an effortless trading experience using both cryptocurrencies and fiat currency. 

Tap into the 1inch ecosystem by opening an account and loading your preferred wallet, then simply execute the trade to buy the 1INCH token. The tokens can then be held in the integrated wallet or used on the 1inch exchange platform or liquidity pools by completing a simple transaction. All you need to do to get started is download the app and create an account. 

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Ankr is playing an integral role in the adoption of Web3, providing growth and development opportunities for network stakers, app developers, and other participants in the DeFi space. 

Ankr is leading the way in making it easier for users to interact with multiple blockchains. Streamlined and simple, Ankr simplifies complex tasks so that you can access multi-blockchain technologies quickly and securely.

What is Ankr (ANKR)?

Ankr is a decentralized Web3 infrastructure provider that facilitates the swift and effortless connection between developers, dapps, stakers, and blockchains. With Ankr's APIs & RPCs you can quickly build blockchain-based applications with confidence, stake on Ankr Earn as well as access custom solutions for any blockchain enterprise needs.

Ankr simplifies the process of setting up and participating in Proof of Stake (PoS) blockchains. It provides various tools and services to help users deploy nodes, stake their PoS tokens, and access decentralized finance (DeFi) applications. The Ankr platform was first launched as a Distributed Cloud Computing Network that leverages idle computing resources. This allowed users to access cloud computing services without relying on a single provider's infrastructure.

Ankr provides a variety of features and tools, such as node hosting, staking pools, analytics, and automated notifications. These services work together to make participating in Web3 easier by providing simple solutions. 

The node creation process is supported across multiple blockchains and in return for the services provided, node operators pay a monthly fee to Ankr. 

ANKR is Ankr's native cryptocurrency fueling the platform and is used as a payment method within the ecosystem. 

Who created the Ankr platform?

Ankr was founded in 2017 by Chandler Song, Ryan Fang and Stanley Wu and officially launched in 2019. Song and Fang were former college roommates while Song worked under Wu, a computer engineer at Amazon Web services, while interning. Together the three founders created Ankr, with a mission to build the most decentralized and scalable Web3 infrastructure possible. Song is currently serving as CEO, Fang as COO, and Wu as CTO.

Following several successful rounds of funding, the team has amassed tens of millions of dollars from big blockchain investors such as Pantera Capital and NEO Global Capital (NGC) as well as several funding rounds. The first token presale raised $15.9 million followed by another token sale which raised $18.7 million in just six days. Once opened to the general public, the platform raised a further $2.75 million. 

How does the Ankr Protocol work?

It is important to note that Ankr is not a blockchain. Instead, it provides specialized tools which are beneficial for builders, stakers, and businesses alike. Its main features can be broken down into these four categories below:

Node infrastructure services

With Ankr's decentralized infrastructure, DeFi platforms, NFT projects, blockchain games and dapps of all kind can receive faster access to blockchains at a more scalable and cost-efficient rate. Hosted by numerous high-performing nodes across the world simultaneously serving requests, these applications are guaranteed optimal performance.

However, setting up a blockchain node requires technical know-how, time, and effort, skills not everyone possesses. Ankr provides a service where it can launch one which can be accessed remotely. This provides the opportunity for users of all skill levels to participate in the validation process on a Proof of Stake blockchain. Additionally, the platform overlooks the performance of the node to ensure that users' funds staked are not punished due to any downtime or dishonesty.

Instant API and RCP access for developers

Developers who are launching smart contracts​ and ​dapps to a blockchain are required to use designated APIs (Application Programming Interfaces). This process typically involves running a node alongside these and spending time synchronizing it to the data on the blockchain. 

To solve this issue, Ankr provides instant API services and RPC (Remote Procedure Call) access to developers. This allows for uninterrupted access to blockchains without having to worry about vying traffic. It also provides access to the whole chain's data, supplying the dapp with all the information it might require and an overall better user experience. 

Custom Blockchain Enterprise Tools

For enterprises in need of custom-made, streamlined solutions for handling multiple blockchain networks, Ankr provides a Web3 Infrastructure-as-a-Service model. Accessible through an easy-to-use monitoring platform, businesses can utilize the platform's API and RPC services making their operations more efficient and cost-effective.

Liquid staking

Ankr provides staking capabilities across multiple chains, offering reward-earning tokens to represent these staked funds. The tokens can then be used to trade or for various DeFi activities such as lending, yield farming, liquidity mining, etc. This allows users to maximize their earning potential while still engaging in staking activities. 

For example, instead of staking the minimum required amount of 32 ETH on Ethereum 2.0, users can stake 0.5 ETH through the Ankr protocol, with these funds automatically being routed to the pools with the highest yield. In return, users will receive aETHb or aETHc tokens, which provide a liquid way in which users can access their staked tokens. 

What is the ANKR token

ANKR is an ERC-20 and BEP-20 token that operates across both the Ethereum and BNB Smart Chain networks. The utility token has a number of functions, as outlined below, and a maximum supply of 10,000,000,000. 

ANKR is primarily a form of payment on the platform but also offers staking functionalities and governance rights. 

How can I buy the Ankr token?

Tap's mobile app makes it effortless for users to acquire ANKR and store it in the integrated wallet with assurance. Not only can you benefit from a convenient place to acquire and store your ANKR token, but also withdraw coins immediately for use on the linked DeFi platform. Tap provides you with not just an easy way to trade digital assets, but also a reliable space where your assets holdings can remain securely stored over extended periods of time.

Unlock the potential of a range of verified cryptocurrencies and fiat wallets by downloading the Tap mobile app.

Convex Finance has been dubbed a "DeFi 2.0 protocol," and is part of the ever-growing subset of second-generation decentralized finance (DeFi) protocols that offer yield farming services to users. Deeply ingrained in the DeFi space, Convex empowers Curve Finance users to further benefit from earning and optimizing yields. 

What is Convex Finance (CVX)?

Convex Finance is a revolutionary DeFi platform that offers enhanced staking rewards and works on top of the Curve Finance network, a decentralized exchange (DEX) liquidity pool designed for the swapping of stablecoins. By focusing on stablecoins, the Curve exchange platform is able to bypass volatility typically associated with the cryptocurrency industry, as well as offer lower trading fees and less slippage.

Curve Finance functions using its native CRV tokens which are earned when users deposit crypto assets into its liquidity pools. Both protocols, Curve and Convex, are built on the Ethereum blockchain. Convex acts as a yield optimizer for both Curve CRV token holders and Curve liquidity providers on the network. 

Convex offers a simple user experience alongside extra advantages such as low-performance fees and zero withdrawal fees, which allows liquidity providers and CRV stakers to earn higher returns. Convex Finance CVX tokens are the platform's native token and are ERC-20-based utility tokens with additional governance incentives.

The Convex Finance protocol offers two ways in which users can optimize their yields: staking and providing liquidity.

• Staking: users can stake CRV tokens on Convex (instead of staking on Curve directly) to receive additional rewards (CVX and a portion of the protocol's earnings). CVX can also be staked on the Convex platform, and in return, users earn a share of Curve liquidity providers' CRV earnings. 
• Liquidity providers: as a reward for providing liquidity on the Curve platform, liquidity providers earn Curve LP tokens. These tokens can be staked on the Convex platform in return for CRV tokens and additional rewards. The more CRV tokens that are staked, the higher the reward distribution. 

CVX token holders can earn governance rights by locking their tokens on the platform for a specific amount of time. 

Who created the Convex Finance platform?

Convex Finance was launched in May 2021 by a pseudonymous founder, C2tp. Little is known about this person or group but it is assumed that they came from a software development background. Despite anonymous founders generally being a red flag for risky investments, Convex has defied this norm and is considered to be one of the most influential and important protocols in the DeFi industry. 

In its first month, Convex Finance recorded $68 million in total value locked (TVL), reaching its peak in January 2022 of $21 billion. TVL refers to the sum of all the crypto assets deposited in a DeFi protocol at any given.

Soon after launching, the Convex platform was whitelisted on the Curve platform. Due to a large number of CRV tokens being deposited on Convex, Curve granted Convex permission to participate in Curve's governance. 

How does Convex Finance work?

The Convex Finance protocol provides users access to liquidity and earning trading fees through Curve's established stablecoin pools. In order to do so, users need to deposit Curve tokens into Curve's liquidity pools and then stake them on Convex. Acting as an intermediary, Convex then auto-harvests these tokens and reimburses liquidity providers with the gained rewards. 

CRV tokens and curve liquidity providers

These rewards can be distributed as either CRV or other tokens such as LDO or SNX. Liquidity providers can also increase their returns by further compounding their earned CVX tokens through the staking mechanism. Both CRV stakers and Curve’s liquidity providers are entitled to Convex liquidity mining rewards. 

Convex Finance CVX tokens were designed to simplify staking on Curve's platform with an added fee-earning nature. When a user deposits CRV into Convex, the platform converts these tokens into veCRV (vote escrowed CRV) and credits the depositor with cvxCRV on a 1:1 ratio. Users can then exchange the cvxCRV tokens for CRV using the Curve liquidity pool and earn higher yields by locking up more CRV. 

When users have deposited a certain amount of CRV tokens into the Convex protocol they receive wrapped cvxCRV tokens. These tokens can be staked for CVX tokens and are entitled to CRV rewards earned through the protocol. These rewards include receiving a part of the CVX token airdrop and a 10% share of the CRV harvested by the vaults. 

By providing users the opportunity to earn staking rewards and trading fees without having to lock in CRV, Convex offers a secondary source of income for tokens users already own through Curve. This is the core reason for Convex's success and growth. 

What are CVX tokens?

Convex Finance CVX tokens are ERC-20-based tokens with both utility and governance functionality. The token is used to receive a share of Convex platform fees and reward CRV stakers.

The token has a maximum supply of 100 million, with 50% of the tokens assigned to rewarding Curve liquidity providers. 25% of the remaining tokens are allocated to liquidity mining distributions over the next four years while 9.7% are held in the platform's treasury.

How can I buy the Convex Finance CVX token?

Tap grants its users the freedom to trade securely while retaining their cryptocurrencies in its integrated wallet or the choice of withdrawing them for use on DeFi platforms. Tap offers a secure space to not only trade digital assets but to store them long term too. 

Unlock the power of Tap's mobile app by creating an account and completing your account verification steps. You'll then enjoy access to a wide array of vetted crypto markets and fiat currencies, from where you can buy or sell Convex Finance CVX tokens in a click. All that stands between you and get started with Tap is getting the app today.

After its launch in 2020, Yearn.finance (YFI) quickly became one of the fastest-growing DeFi projects, attracting over $800 million in digital assets in its first month. In eight months, the total value locked (TVL) on the platform had grown to $1 billion. Yearn Finance offers a range of lending and trading services that provide impressive earning potential for crypto asset holders.

What is the Yearn Finance platform?

Yearn.finance (YFI) is a decentralized finance platform consisting of a group of protocols built on the Ethereum blockchain. These protocols allow users to maximize their digital asset-earning potential through staking, lending aggregation and yield generation services.

The aim of the Yearn Finance project is to make DeFi (decentralized finance) trading less complicated and more accessible to less technically-minded traders. The platform utilizes automation to allow traders to maximize profits from yield farming.

Yearn Finance consists of four core products:

• Earn – establishes the highest interest rates that users can earn from lending crypto assets. 
• Zap – groups together several trades in one click, reducing costs and labor.
• APY – comprehensive data table that analyzes interest rates across various lending protocols. 
• Vaults – investment strategies developed to yield the highest returns from other DeFi projects.

Through locking supported cryptocurrencies in Yearn Finance smart contracts integrated into the Curve DeFi and Balancer trading platforms, users earn YFI tokens and can engage in yield farming practices. The more crypto assets that users lock into these protocols, the more tokens they receive.

In order to operate efficiently in a decentralized manner, Yearn Finance built an impressive system of automated incentives rewarding participants who act in accordance with the outlined governance proposals with its YFI tokens. These proposals are voted in by YFI holders.

Who created Yearn Finance (YFI)?

Yearn Finance was launched in February 2020 by a prominent contender in the crypto space, Andre Cronje. Cronje led the launch of the platform having received no funding or reserving any tokens for himself, an exceptionally rare occurrence in the crypto assets and DeFi projects space. 

On top of that, he also holds important roles at smart contract ecosystem Fantom and CryptoBriefing - a premier go-to resource for anyone interested in Initial Coin Offerings (ICOs) or crypto media.

How does the Yearn Finance (YFI) platform work?

Yearn Finance offers users custom-built tools that act as an aggregator for other DeFi projects such as Aave, Compound, and Curve DeFi trading platforms. 

Built on the Ethereum blockchain, Yearn Finance deploys contracts on other compatible decentralized exchanges such as Balancer and Curve to maximize the earning potential for its users. 

These contracts can be categorized into the four core products mentioned above, with most of the platform's services centered around lending or trading digital assets, and generating a passive income.

Earn

The earn product acts as a lending aggregator and searches across a selection of reputable different lending protocols to find the best interest rates, allowing users to tap into the best rates when lending cryptocurrencies. Users can then deposit USDT, USDC, DAI, sUSD, or TUSD into liquidity pools directly through the Yearn Finance platform to tap into those interest rates. 

Zap

Saving time, costs and transaction fees, the zap product allows users to conduct several transactions in one click. For example, a user can trade DAI for yCRV in one smooth movement, as opposed to several transactions on other DeFi projects. 

APY (annual percentage yield)

Aggregates the earning potential on an annualized basis based on how much capital is invested by searching across the various lending protocols utilized by the Earn product. 

Vaults

The more complex of the services offered by Yearn Finance, the Vaults product allows users to tap into active investment strategies designed by the platform's own self-executing code. These essentially work as actively managed mutual funds with Yearn Finance being the financial intermediary.

Users looking to engage in this product, noting that it is still in experimental stages, would need to have some technical know-how to investigate how these strategies work as they are presented in Solidity (a smart contract-orientated programming language). Utilizing the product, however, is less complicated, simply requiring users to deposit USDC or DAI in each strategy which then invests the funds in various liquidity pools.

What is the YFI token?

Launched in July 2020, the YFI token is based on the ERC-20 token standard and operates as a utility and governance token across the ecosystem. While anyone can make a proposal, only YFI holders are able to vote on proposals put forward regarding the governance and future development of the platform. The higher one's YFI token holding, the more voting power the YFI holders have. A proposal requires more than 50% of the votes in order to be passed.

The maximum supply of YFI tokens was 30,000, however, YFI holders voted to increase this. Following the successful proposal, the total supply is now 36,666 YFI tokens.

Holders are able to earn YFI tokens through revenue received through fees charged on the platform. These are generated through the 0.5% fees charged for using the Earn feature and 5% for the Vault service. Users can also earn YFI tokens by providing liquidity on the platform.

How can I buy the Yearn Finance token?

Whether looking to actively engage in the yearn.finance (YFI) platform, other DeFi protocols, or simply acquire and hold the YFI token, Tap provides a simple and secure solution. Fully regulated and licensed, the Tap mobile app requires users to create an account and complete the account verification process in order to gain access to a wide range of vetted cryptocurrencies. 

Once approved, users can buy, sell, store and trade the YFI token or any of the other supported cryptocurrencies from the convenience of their mobile phone.