The DeFi Pulse Index (DPI) is designed to capture the performance of the most significant tokens in the Decentralized Finance ecosystem. DPI currently has a Market Capitalization of $134.33 million and a trade volume of 0.34 million. Traders are currently incentivized with a 0.95% streaming fee.
YFI is one of 17 tokens currently held in the DPI product. Here’s a basic overview of what you need to know about this exciting token.
What is YFI?
YFI is a token created by yearn.finance, a decentralized aggregator of various DeFi lending protocols, such as Aave, Compound, DyDx and others. YFI was created in July 2020 as a governance token for the yearn.finance community. The yearn.finance protocol allows investors to maximize yield and receive the highest return from various lending protocols, similar to identifying the best interest rate and transferring your money to that provider automatically.
The yearn protocol achieves this by issuing the user a stable Ycoin tied to the user’s original investment. The coin can then be transferred to a different protocol depending on which one returns the best yield. If an investor wants to withdraw their original token, they can convert the coin back to its original currency. The yearn.finance protocol also accounts for the changes in APY that may occur when moving large amounts of tokens and will divide the investment into different protocols for the best yield.
Yield.finance makes it easy to receive the benefits of yield mining by serving as an automated yield mining protocol. It simplifies yearn farming strategies by providing a simplified dashboard and automating what would otherwise be a complicated calculation.
Who created YFI?
Andre Cronje, a self-taught software developer, founded yearn.finance as a way to optimize his own yield optimization strategies. Throughout this process, Cronje realized he could expand this code to a larger scale. He worked with Aave and Curve Finance to create yearn.finance. One of his primary goals was to make investing in DeFi easier and more accessible.
Cronje created the YFI token in July of 2020 as a way to establish a decentralized form of governance and distance himself from yearn.finance. The token was intended specifically for users who first got involved with yearn.finance as a way to create governance and Cronje did not keep any of the tokens for himself.
What makes YFI stand out?
As yield rates for different protocols change from day to day, and the calculations to determine which protocol provides the best yield is complex, yearn.finance provides a significant opportunity for investors to make the most of their investments.
Why was YFI included in DPI?
Yearn revolutionized yield earning opportunities in the DeFi space with over $733.97 million worth of crypto assets currently staked. An index that tracks the performance of decentralized financial assets wouldn’t be complete without Yearn. As a truly decentralized product that is not limited by local regulations in addition to an active community and a governance token, Yearn’s offerings to the DeFi space are yet to meet a competitor.
The total supply of YFI coins is currently 36,640 with a market capitalization of $733.97 million USD. When the token was first released, the total supply was limited to 30,000, though more have been minted after approval by YFI governance.
YFI Website and Communication Channels