DeFi or Decentralized Finance refers to the use of blockchain technology to deliver financial services without traditional intermediaries such as banks.

 

In that regard, platforms such as YFII (DFI Money) and Yearn Finance play an important role in the DeFi ecosystem by providing innovative products such as aggregate liquidity provision and automated market making.

 

In this article, we will explore what Yearn Finance (YFI) is, from its main features, its token, what DFI Money (YFII) is, how Yearn Finance works, to its uniqueness.

 

 

What is Yearn Finance (YFI)?

Yearn Finance began operations in 2020 under the name iEarn Finance before being renamed yEarn by Andre Cronje. It is a DeFi platform where users can store and stake their ERC20 tokens to earn daily interest.

 

In this case, the allocation of pooled capital is known to offer very favorable returns. Yearn Finance makes the DeFi experience easier by incorporating various blockchain protocols.

 

By only staking tokens once in Yearn, users can access many different blockchain protocols that generate interest. These protocols continuously adjust strategies to maximize returns from changing harvest opportunities.

 

Key Features of YFII

DFI Money (YFII) is a DeFi platform that aims to build products based on providing aggregate liquidity, leveraged trading, and automated market making that are permissionless for anyone who wants to join.

 

YFII is a derivative of YFI (Yearn.Finance) which was formed by the crypto community in China. The YFII token has become very popular in China’s DeFi ecosystem and operates on the Ethereum platform. This token creation was initiated by the community to introduce the YIP-8 proposal.

 

YFII Token

YFII token is a utility token derived from the DFI.Money platform. To earn it, users can contribute liquidity into DFI liquidity pools.

 

YFII acts as a community governance token, used to vote on decisions and new implementations on the DFI platform through a voting system on the YFII DAO.v

 

What is DFI Money (YFII)?

YFII is a derivative of YFI formed by the crypto community in China. This token has become very popular in China’s DeFi ecosystem.

 

YFII was created to implement the YIP-8 proposal after it was not successfully approved. Although YFII has 98% of the same code as YFI, its maximum supply is only 40,000 tokens.

 

YFII was initially controversial and suspected of being a scam after being blacklisted by Balancer. However, YFII has performed well by recording an all-time high (ATH) of up to $6,000.

 

How Yearn Finance Works

Please note, Yearn Finance consists of four (4) different core products, which include the following:

 

• Vaults: staking pools that generate returns based on market opportunities. Vaults benefit users by collectively pooling gas fees, automating the yield generation and rebalancing process, and automatically shifting capital as needed.
• Earn: The first product from Yearn. Earn is a lending aggregator where funds are automatically switched between dYdX, AAVE, and Compound as interest rates change between these protocols, ensuring users utilize the best interest rates all the time.
• Zap: This product allows users to swap assets in and out of the liquidity pool on Curve.Finance using five stablecoins (BUSD, DAI, USDC, USDT, TUSD).
• Cover: Insurance that allows users to get protection in case of financial loss for various smart contracts and protocols on the Ethereum network.

 

The amount of YFI earned by users is determined by the amount of crypto assets locked in Yearn Finance contracts operating on DeFi Balancer and Curve trading platforms, using the yearn.finance platform.

 

Uniqueness of Yearn Finance

Yearn Finance has a unique vision to simplify DeFi investing and activities such as yield farming, in an effort to make it more accessible for beginners.

 

Yearn utilizes a variety of custom tools built to act as aggregators for DeFi protocols such as Curve, Compound, and Aave.

 

The platform has a built-in mechanism to monitor interest rates, providing those who stake crypto assets with the highest possible yield.

 

Yearn Finance benefits from withdrawal fees, currently at a reasonable 0.5%. There is also a gas fee subsidy fee of 5% which varies depending on the density of the Ethereum network. Thanks to the decentralized governance model, these rates can be changed by user consensus at any time.

 

Yearn Finance Network Security

Yearn Finance users may occasionally face the risk of losing money due to rapidly changing market conditions and opportunistic entities trying to profit from less experienced participants.

 

In an effort to maintain transparency regarding the potential risks of the platform, creator Andre Cronje made it clear in the community that despite independent code audits, Yearn Finance cannot be guaranteed to always be 100% secure. This is the reality of decentralized finance: DeFi involves inherent risks.

 

Other Branches of Yearn Finance

Yearn Finance has other branches or derivatives that are important for users to know, including the following:

 

1.YFValue (YFV)

 

YFV is an offshoot of YFII with the goal of making crop yields available to all users around the world. YFV strives to make yield harvesting more inclusive to achieve their accessibility mission of “bringing agriculture to everyone”.

 

The YFV token gives its owner voting rights to control the supply and referral system, with the burning done automatically on the blockchain. The maximum supply of YFV tokens is 15,750,000.

 

In addition, YFV also offers “insurance” with the intention of using insurance funds from the YFV team and community to engage and integrate insurance protocols such as Nexus Mutual. This aims to mitigate risk on behalf of all YFV stakeholders.

 

2.Yearn Finance Link (YFL)

 

YFL is a modified version of YFI that aims to optimize DeFi governance for the Chainlink community. The project adapted YFI for use with LINK so many analysts see YFL as the link between YFI and LINK.

 

The maximum supply of YFL is limited to 85,000 tokens. YFL is also divided into 5 groups with unique configurations. For example, you can deposit LINK and YFLINK tokens into the Balancer pool, which generates BPT tokens.

 

The BPT tokens can then be used in staking with the YFLINK pool, allowing you to earn YFLINK from the YFLINK pool and BPT from the Balancer pool.

 

 

How to Buy Yearn Finance (YFI) Coin Crypto Assets on INDODAX

To buy Yearn Finance (YFI) crypto assets on INDODAX, please follow these steps:

 

• If you are not yet a member of INDODAX, please register here.
• Proceed with making a deposit
• After the deposit and your balance is entered, please return to the INDODAX market page
• Search for YFI and click (YFII to IDR)
• After entering, you can buy YFI by filling in your balance and choosing the desired purchase price. You can also buy instantly
• Next, be patient and monitor the price increase of YFI for some time.
• After the price increases, you can sell it at a higher price using the instant method.
• If you use the limit method when selling then make sure to place an order with a selling price that is higher than your purchase price.

 

Additionally, keep your YFI assets in a secure crypto wallet, such as a trusted hardware wallet or software wallet. Also, make sure your wallet is well encrypted and use strong security settings, such as two-factor authentication (2FA).

 

Conclusion

 

In conclusion, DeFi brings blockchain technology to transform the way we interact with financial services as well as eliminate traditional intermediaries such as banks and enable more inclusive access.

 

As for YFII (DFI Money), it offers products such as aggregate liquidity provision and automated market making, providing a permissionless solution for users to participate in DeFi.

 

On the other hand, Yearn Finance plays an important role as an aggregator for DeFi protocols such as Curve, Compound, and Aave that help users to maximize their earnings by monitoring and selecting the best interest rates.

 

Basically, the future of YFII and Yearn Finance in the DeFi ecosystem looks bright. Both platforms are constantly developing new innovations and adjusting to evolving market demands, opening up opportunities for users to engage more deeply in the DeFi ecosystem.

 

Therefore, it is important to take advantage of the opportunities offered by DeFi platforms such as YFII and Yearn Finance. By participating, you are not only taking advantage of their innovative products, but also supporting the development and adoption of DeFi globally.

 

FAQ

 

1. What is DFI Money (YFII)?

DFI Money (YFII) is a DeFi platform that provides aggregated liquidity, leveraged trading, and automated market making. YFII is a branch of YFI formed by the Chinese crypto community, with the aim of introducing the YIP-8 proposal.

2. What are the main features of Yearn Finance?

Yearn Finance has four core products:

Vault: A profit-making staking pool based on market opportunities.

Earn: A loan aggregator that moves funds between protocols for the best interest rates.

Zap: A stablecoin exchange on Curve.Finance.

Coverage: Insurance for smart contract protection.

3. How does the YFII token work in the DFI Money ecosystem?

Token YFII digunakan sebagai token tata kelola dalam komunitas DFI Money. Pengguna dapat memperoleh YFII dengan menyumbangkan likuiditas ke liquidity pools dan menggunakan token tersebut untuk memberikan suara pada keputusan platform melalui YFII DAO.

4. What makes Yearn Finance unique in the DeFi ecosystem?

Yearn Finance simplifies DeFi investing by integrating various protocols such as Curve, Compound, and Aave. The platform provides maximum returns through an interest rate shopping mechanism and has a decentralized governance model.

5. How to buy Yearn Finance (YFI) crypto asset?

To buy YFI, choose a crypto exchange that supports YFI, register and verify your account, deposit funds, search for YFI trading pairs, make a purchase, and store YFI in a secure crypto wallet.