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What is Yearn and YFI?

Yearn is a yield aggregator for DeFi lending platforms that rebalances for highest yield during contract interaction which supports Compound, dYdX, Aave and DDEX protocols. When users put their money into the platform, it automatically transfers the assets into the protocol that has the highest yield, and returns a proof of stake called yToken. Users can send back yTokens at any time to withdraw their deposits along with the interest.

Moreover, Yearn and Curve together created y.curve.fi, a pool for stable coin exchange. Besides enjoying the interest on lending, yToken holders can put their tokens into the exchange pool of y.curve.fi to become a market maker, generating extra incomes. Such a combo now ranks first among all DeFi platforms by APR.

(Andre Cronje)

YFI is the token used for governing Yearn protocol. Its initiator Andre Cronje admitted that he had no interest in participating in the governance and wished the community to be autonomously organized. Until July 26th, YFI has been issued to yield farmers who provide liquidity to the pools (Info from debank.com).

YIP-8 and forking of YFI

As mentioned above, the 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 so that the tokens will be fairly distributed to the community.

(Yearn Improvement Proposal 8)

(FOR votes of YIP-8 exceed 80.07% but the proposal is still declined due to early farming whales' intervention)

How and when was YFII launched?

YFII belongs to the community. No pre-mining. No ICO. No dev team rewards. The only way to get YFII is to provide liquidity to the pools. YFII is the token for community governance and the key to farming yields of various DeFi platforms. It is used for revenue allocation and voting in the YFII DAO.

  • Time of the YFII Genesis: UTC 16:00 July 27, 2020
  • Pool 1 opening: UTC 16:00 July 27, 2020
  • Pool 2 opening: UTC 16:00 July 28, 2020