What is YFI?
YFI is a digital currency issued by the Yearn.finance platform and is a token in the decentralized finance (DeFi) ecosystem. Yearn.finance is a decentralized financial platform created by American software engineer Andre Cronje, which aims to provide users with the most efficient, secure and high-yield investment strategies.
About Yearn.finance
Yearn.finance is committed to providing users with an automated investment strategy that automatically invests users' funds in different DeFi platforms through smart contracts and algorithms to obtain the best yield. It uses various protocols and liquidity pools to maximize users' return on investment by optimizing and dynamically adjusting capital allocation.
The platform includes a range of products and services, the most well-known of which is yVaults. yVaults are the core product of Yearn.finance. They are automated smart contracts that help users maximize their investment returns by automatically buying and selling tokens on a regular basis. By automatically pooling users' funds into liquidity pools, yVaults can minimize the complexity and cost of operations.
YFI tokens are the governance tokens of the Yearn.finance ecosystem. Users holding YFI tokens have the right to participate in the governance decisions of the platform, including voting on major changes, adding new strategies or modifying parameters. This makes the entire ecosystem more decentralized and transparent.
Unlike other digital currencies, YFI did not conduct an initial public offering (ICO) or pre-sale, and no team allocated or reserved a portion of tokens. Instead, YFI is generated through liquidity mining, and anyone can participate in mining by providing liquidity and then receive YFI tokens as rewards. This decentralized issuance method ensures fairness and avoids oligopoly.
The total supply of YFI tokens is 30,000, which is a fixed upper limit. The supply of tokens is managed by the decisions of community members with the aim of maintaining their value through fluctuating market mechanisms.
