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- yearn.finance - Profit Switching Lender to Optimize Lending Yields
- yswap.exchange - Single sided automated market maker
- ygov.finance - Governance and Reward Pool Portal
- yliquidate.finance - 0 capital automated liquidations for Aave
- iborrow.finance - Credit delegation vaults for smart contract to smart contract lending
- ileverage.finance - Leveraged DAI / USDC vault shorts (disabled)
YFI is the governance token of the yearn.finance ecosystem. Created by Andre Conje on July 17th of 2020, it allows for the decentralized governance of control mechanisms, fees, and other system parameters. It has no value.
Despite being completely valueless, demand for the YFI token combined with the manner of its acquisition through yield farming meant that it quickly acquired a price on the decentralized exchanges on which it was available. Aside from the very high returns on investment these yield farming methods facilitated, they became notable for their complexity.
As of July 21st, 2020, there are currently three approaches to earning YFI:
The yCurve pool allows stablecoin holders to deposit their coins in a asset that maximizes yield by wrapping interest-earning versions of the coins it holds.
Any deposit of DAI, USDC, USDT or/and USDT will be split according to equal USD value across the interest-bearing versions of these coins and the depositor will receive yCRV coins in there place.
Staking these yCRV at using the ygov.finance user interface will result in a per-block accrual of YFI that can then be claimed.
The second method of obtaining YFI tokens integrates Balancer.exchange, the decentralized exchange protocol.
Those possessing DAI (or YFI) can navigate to the 98% by 2% Dai/YFI pool and deposit their tokens. This deposit will result in the receipt of a unique Balancer Pool Token (BPT) that can then be staked using the ygov.finance user interface. YFI rewards then gradually accrue, that can then be claimed by the staker.
The third method for obtaining YFI combines aspects of the previous two methods by integrating both yCurve and Balancer.
Rather than immediately staking tokens in the ygov.finance UI on depositing stablecoins into Curve and receiving yCRV, these yCRV tokens are added (either as a single asset deposit or with YFI) to the 98% by 2% yCRV/YFI pool at Balancer.exchange.
Depositing to this pool will result in the receipt of a different unique Balancer Pool Token (BPT) that can also be staked using the ygov.finance user interface. YFI rewards then gradually accrue, which can be claimed by the staker.
When Andre Cronje created the YFI token he simultaneously announced his intention to renounce participation in the decision making process of governance, which he instead handed over to the community. In order to facilitate decision making, there is a Proposal and Voting system in place that one participates in through meeting certain criteria.
Participation in governance allows YFI-holders to stake a claim to rewards acquired within the yearn.finance ecosystem. In order to receive these rewards it is necessary to carry out the following actions:
- Acquire and stake at least 1000 YFI-accruing BPT tokens
- Vote in at least one governance proposal (NOTE: Your tokens are locked until 17280 blocks after your last vote)
- Stake YFI tokens to at ygov.finance in order to receive a share of the rewards pro rata.