What is YFI (Yearn.Finance)?
YFI is the governance token of Yearn.Finance, a decentralized finance (DeFi) protocol built on Ethereum. Yearn.Finance is a yield optimizer that automatically moves user funds between different DeFi platforms (like Aave, Compound) to maximize returns.
---
📌 Key Facts:
Feature Details
Token Name YFI (yearn.finance)
Blockchain Ethereum (ERC-20)
Total Supply 36,666 YFI
Launch Date July 2020
Initial Distribution No ICO, no pre-mine – 100% fair launch
---
🔧 What Does YFI Do?
Governance: YFI holders can vote on protocol upgrades, fee structures, and new features.
Vault Participation: Users can deposit funds into “vaults,” which use automated strategies to generate yield.
Revenue Sharing: Fees generated by vaults can be distributed to YFI holders.
---
💰 Price Info (as of June 2025)
Current Price: Around $5,100 – $5,300
Market Cap: Several hundred million USD (fluctuates with market)
Trading Platforms: Binance, Coinbase, Kraken, Uniswap, etc.
---
🧠 Why Is YFI Unique?
No team allocation: YFI had a truly fair launch with no pre-mine or investor advantage.
Very limited supply: Only 36,666 tokens make it highly scarce.
Powerful automation: Yearn’s vaults simplify yield farming for users.
---
⚠️ Risks to Consider
Smart contract risk: Bugs or vulnerabilities in code
High Ethereum gas fees
Market volatility (YFI price can be highly volatile)
---
✅ Use Cases
Passive income through yield farming
Participating in DeFi governance
Long-term holding as a scarce asset in the DeFi ecosystem