About DFI.Money (YFII)

DFI.Money is a fork of Yearn Finance that aggregates the strategies of various lending protocols, automatically steering users' digital assets towards the highest yield. Native asset YFII is used for governance.

According to Messari, is distributed through voting participation and liquidity provision on Curve or Balance.

Yield farming strategies can be developed by anyone to be voted upon, as CoinGecko has noted.

The strategies with the most votes from the community will be implemented.

Who created YFII?

Yearn Finance (YFI) is the yield aggregator created by prolific developer Andre Cronje.

A group of users hard forked the YFI protocol, resulting in the creation of DFI.Money, with its own token, YFII.

The fork was undertaken to protect the protocol design following a community decision having been thwarted by some big holders who were seen as prone to manipulating the provisioning of liquidity. When a measure to prevent this was raised and failed, YFII was born.

When was YFII created and how much was it worth?

It was launched in July 2020. At that time, the mining and farming of Yearn Finance's YFI token had come to an end. The aforementioned proposal (“YIP-8”) earned majority support in the community. However, it was not adopted, having failed to reach a 33% quorum. According to CoinGecko, when YFFI launched, its price was about $800; within a few months, it soared to a record above $9,000.

How is the price of YFII determined?

DFI.Money's YFII undergoes a weekly halving in its emission schedule. YFII is a fixed-supply token, so the measure is deflationary.

According to the YFII project, there is a total supply of 40,000 YFII with 20,000 tokens in each pool. The platform seeks to distribute the tokens ten weeks following the launch date, starting with 10,000 tokens.

Why does YFII have value?

Liquidity providers earn YFII based on their network activities i.e. staking on the DFI.Money platform. The hard fork meant YFII rewards would decrease each week. Staked YFII, in pools, earn more YFII, a scarce asset if the deflationary measures continue as planned.

What are the main benefits of YFII?

• DFI.Money is similar to Yearn Finance but aimed at users of its predecessor who voted in favor of the YIP-8 proposal that was quashed by so-called whales. It also is said to appeal to DeFi greenhorns investors who want to maximize yield farming opportunities.
• DFI.Money says its protocol is community-owned. It does not offer incentives such as developer rewards.
• Liquidity providers earn YFII tokens as a reward.
• According to YFII’s platform, the vault is a “standout offering” for retail traders who deposit the token supported by the platform. Then they reap the reward that the strategy farms, all of it executed automatically.
• The vault has a decentralized mechanism that lets anyone create farming strategies. Those with the most support from the community are implemented.
• The vault aims to minimize transaction fees.