This article is about what is YFII crypto. DFI.MONEY (YFII) is a hard fork of yearn.finance (YFI) with its own token, implementing the YIP-8 proposal, and offering new features like the Vault to maximize returns for liquidity providers in the DeFi space.
What is YFII Crypto?
DFI.MONEY, also known as YFII, is a decentralized finance (DeFi) platform and a fork of the popular yearn.finance (YFI) aggregator. It was launched in July 2020. with the objective of maximizing returns for DeFi investors, while following the proposed upgrade plan YIP-8. DFI.MONEY introduced new products, including its "killer product" called the Vault. The platform's native token is YFII, which has a fixed supply and is earned by liquidity providers based on their network interaction.
What is the Origin of DFI.MONEY?
DFI.MONEY, also known as YFII, originated as a hard fork of yearn.finance, a DeFi aggregator created by Andre Cronje. Cronje initially left yearn.finance (iEarn) in early 2020 but returned later to continue its development, which led to increased popularity as DeFi gained mainstream attention.
In July 2020. yearn.finance's YFI token mining and farming ended, and a proposal called YIP-8. aimed at protecting liquidity provision from whales, gained significant support but failed to meet the required 33% quorum for adoption.
In response, a group of users chose to hard fork the protocol, creating DFI.MONEY, which introduced its own token, YFII, and implemented the YIP-8 proposal. YFII rewards decrease each week following a pattern similar to Bitcoin (BTC).
What Makes YFII Unique?
What sets DFI.MONEY apart is that it fulfills a similar role to yearn.finance but with different protocol rules for its token and some additional features. It appeals to users of the original yearn.finance who supported YIP-8 and newcomers in the DeFi space seeking to maximize returns through liquidity provision.
DFI.MONEY positions itself as community-owned and does not offer commercial incentives such as developer rewards by default. Users participate in liquidity pools with Curve (CFI) or Balancer (BAL) and earn YFII tokens as rewards for providing liquidity.
The platform also introduced a unique feature called the Vault, which automatically seeks to achieve the highest returns for users' tokens based on user-submitted strategies, removing the need for manual transaction setups.
How Many YFII Coins are in Circulation?
YFII is an ERC-20 standard token with a fixed supply of 40.000 YFII. According to the characteristics set out and accepted in YIP-8. no premine, presale, or developer-allocated tokens were taken from the total supply.
DFI.MONEY states that the only way of earning YFII is by providing liquidity to the protocol. Tokens are distributed according to liquidity provision, with rewards decreasing weekly. Each of the two liquidity pools began with a supply of 20.000 YFII.
A schedule confirms that token distribution was completed ten weeks after it began, at the end of September 2020.
Bottom Line
In this article, we have discussed what is YFII crypto. YFII has become a popular trading token since its launch.
