YFI is the governance token for the Yearn Finance protocol. It can be used to vote and receive cash flows from the fees earned by the protocol.
YFI initiated the first community-fair-launched token distribution, giving out 30,000 tokens to early protocol’s users by a surprise yield farming announcement back in 17-July-2020.
How to obtain YFI?
YFI can be obtained by buying them from exchanges such as Sushiswap or Binance. You can find YFI trading on various centralized and decentralized cryptocurrency exchanges.
What is Yield Farming and Delegated Vaults?
Yield Farming refers to the activity of depositing and locking capital in a DeFi Protocol for the reward of the protocol’s native tokens. DeFi protocols need to bootstrap capital to provide liquidity for exchanges, lend to borrowers, underwrite insurance risk, etc. It acts as an incentive to attract users to use the protocol while generating hype, giving out part of its native tokens.
What is the Yearn Finance Alliance?
During the weeks of 24 November until 3 December 2020, Yearn Finance announced the Merger and Acquisition (M&A) of multiple protocols, essentially forming an alliance revolving around YFI.
SushiSwap joined as its Automated Market Maker (AMM) arm.
Cover joined as its insurance arm.
Cream joined as its lending arm.
Akropolis joined as its institutional service provider for yVaults and upcoming lending products.
Pickle joined as one of its strategists.
There are even multiple Yearn Ecosystem Index tokens launched such as YETI by Powerpool and YPIE by PieDAO.
What are the fees to use Yearn Finance?
Yearn Finance v1 charges a withdrawal fee of 0.5% plus 5% performance fee from the gas cost saved.
Yearn Finance v2 follows the traditional hedge fund fees structure of 2/20 where it charges 2% for management fee and 20% for performance fee. Yearn Finance v2 was launched on 19 January 2021.
