What is DFI.MONEY (YFII)?
DFI.Money is a native token of the YFII protocol. It is a fixed-supply crypto that liquidity providers get in accordance with their network interaction. Launched in August 2020, DFI.Money is still a baby in the cryptocurrency industry. However, that doesn’t mean that you should underestimate it. The YFII protocol is currently popular in the Chinese DeFi market with a major following on WeChat.
YFII or DFI.Money itself is a yield-farming aggregator that enables you to earn better and stable returns from your crypto investments. Wondering why the name sounds familiar? This is because it emerged from the shadows of yearn.finance (YFI) as a hard-fork. The main difference between the two is that DFI.Money implements a token halving model which keeps token distribution fair and prevents whales from farming all the rewards.
Liquidity is always changing within most crypto exchanges, which always causes prices to shift and make it challenging to access the best rates. Therefore, you have to manually compare all the platforms for the best rate. YFII’s protocol solves this problem by automatically moving funds between various lending pools such as Aave and Compound Finance to ensure that you always have access to the best returns with minimal time investment.
Who Created DFI.MONEY?
DFI.MONEY originated as a hard fork of yearn.finance, the aggregator for DeFi returns created by Andre Cronje.
Cronje left the original incarnation of yearn.finance, iEarn, in early 2020, only to return to continue its development, whereupon its popularity grew considerably as DeFi became more mainstream.
In July 2020, mining and farming of yearn.finance’s YFI token ended, and a proposal to protect liquidity provision from whales earned 80% support among protocol participants. However, it was not adopted due to not meeting yearn.finance’s requisite 33% quorum requirement.
As a result, a group of users opted to hard fork the protocol to create DFI.MONEY, with its own token, YFII.
The hard fork implemented the proposal, known as YIP-8, which makes YFII rewards decrease each week, following a pattern popularized by Bitcoin (BTC).
What Makes DFI.MONEY Unique?
DFI.MONEY essentially fulfils the same role in the DeFi marketplace as yearn.finance, subject to different protocol rules for its token and with some new features.
Its appeal is thus aimed at users of its predecessor who voted in favor of YIP-8, as well as newcomer DeFi investors who want to maximize returns by providing liquidity.
DFI.MONEY’s website states that its protocol is community-owned and does not offer commercial incentives such as developer rewards by default.
Users join one or both of two liquidity pools which feature Curve (CFI) or Balancer (BAL), earning YFII tokens as a reward for providing liquidity.
DFI.MONEY also introduced a new feature, the Vault, which seeks to gain users the highest returns of any token automatically according to user-submitted strategies, without the users themselves manually setting up transactions.
History of DFI.MONEY.
From Week In Ethereum (2-8-2020):
"YFI and forks had quite a week: a fork called YFII catching fire in China before getting removed from the Balancer UI, YFI started farming YFII and dumping it, and then a different fork (YYFI) was a scam where the owner drained the Balancer pool."
From the docs (12-7-2021):
"Mining/farming of YFI has stopped on July 26. In order to prevent a sharp drop in liquidity of the pools, the community proposed YIP-8, suggesting a weekly halving model for yield farming. Though more than 80% of the votes are FOR the proposal, it has been declined because of the unmet 33% quorum requirement. To protect Andre's genius design from being spoilt by whales, we forked YFI, naming it YFII. The issuance of YFII imitates the halving model of Bitcoin."
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Cryptocurrency