Launched in July 2020, DFI.MONEY, also known as YFII, is a fork of the popular decentralized finance (DeFi) aggregator platform yearn.finance (YFI) to help develop products on solely aggregated liquidity provision and leveraged trading. It was developed to help DeFi investors optimize their profits while its financial operations follow the changes proposed in an upgrade plan called YIP-8.
Before its rebrand, DFI.MONEY was called YFII Finance. YFII Finance is an implementation of the YIP-8 proposal that was put forward by members of the original Yearn Finance Community. YFII project is a fork of Yearn Finance (YFI), a decentralized finance platform implemented through Yearn Improvement Proposals (YIPs). Yearn Finance II was formed to protect the protocol design from being spoiled by whales (big manipulators) when a community decision got rejected in YIP-8.
As well as the new changes, DFI.MONEY has also developed and publicly released new products that will help facilitate its operation and among these products is ‘the Vault’, regarded as the Chief and killer product.
The native operations token of DFI.MONEY is YFII, which is a fixed-supply governance token that allows liquidity providers to earn following their network interaction. This means participants on the DFI.MONEY platform can earn as many YFII tokens as long as they continually provide liquidity to the pool and strives to be the most decentralized token.
The project aims to be a composable and passive income machine powered solely by smart contracts and crypto primitives and will also serve as a medium for users to deposit supported tokens that automatically transfer into the protocol that has the highest yield. In return, users receive iTokens which are interest-bearing Tokens that represent their deposit and any interest generated through the automatic optimization of strategies of the YFII Vault. These tokens comply with the ERC20 standard and can be utilized or integrated by DeFi products to generate more complex DeFi derivatives.
Who Are the Founders of DFI.MONEY (YFII)?
DFI.MONEY originated as a hard fork of yearn.finance, the aggregator for DeFi returns created by Andre Cronje.
What is DFI.MONEY (YFII) used for?
Voting
As a decentralized protocol and DAO community, any changes to the DFI.money ecosystem are always done via on-chain proposals and voting.
Increases yield
Since the platform is a fork of Yearn.finance and acts as a yield optimizer for tokens deposited to the platform. Users whose tokens were deposited stand a chance to have their yield increased depending on their waiting period.
Receive strategy reward
Essentially, traders deposit their tokens supported by the platform and receive the reward that the strategy farms automatically as provided by the vault.
Voting and governance
The YFII serves as the governance token and confers holders the right to vote on enactable decisions that can benefit the project.
Provide liquidity
YFII and other provide tokens accepted by the platform can be used to provide liquidity to any existing pool for profits or more YFII tokens.
Income allocation
During reward allocation, the YFII token is used. Here, participants are rewarded an equitable amount of the tokens.
Yield farming
Participants can engage in yield farming with the YFII token or other approved tokens.
Staking
Participants can stake their tokens for a period to earn profits or more YFII tokens.
What is the Unique Point of DFI.MONEY?
The emission model of DFI.MONEY serves as its unique feature. Contrary to the earlier protocol at Yearn Finance, YIP-8 proposed a different token emission model, one that is similar to the Bitcoin halving model—this served as the genesis of the YFII platform. According to the Bitcoin halving model, the number of Bitcoins issued to miners is cut in half every four years until all coins have been virtually mined and hence will maintain the token’s scarcity which will then stop an endless creation of the asset. Similarly, the YFII platform proposes a weekly halving model, meaning the newly added tokens are reduced to half every seven days to facilitate a fair distribution to the community.
Irrespective of the new change, DFI.MONEY essentially fulfills the same role as yearn.finance in the DeFi marketplace, although it is being subjected to different protocol rules for its token and embedded with some new features. Also, DFI.MONEY’s website states that its protocol is community-centered and does not offer commercial incentives such as developer rewards by default.
The Vault is another unique feature of DFI.MONEY; is a feature that seeks to gain users the highest returns of any token automatically according to user-submitted strategies, without the users themselves manually setting up transactions. According to YFII’s platform, the vault is a standout offering for retail traders and a farming pool aggregator that uses a set of strategy contracts to let traders earn a better APR (annual percentage rate), a measure to represent crypto returns.
The vault is also non-biased and offers a decentralized mechanism that lets anyone write strategies and implements the one with the most votes. In addition, the vault aims to cut down the gas or transaction fee as traders deposit and withdraw the tokens.
How Many DFI.MONEY (YFII) Coins Are There in Circulation?
YFII is an ERC-20 standard token with a fixed supply of 40,000 YFII.
How Is the DFI.MONEY Network Secured?
DFI.MONEY states that YFII has a guaranteed fixed supply of 40,000 tokens which cannot be manipulated by developers. This was made possible by sending keys allowing minting of new tokens to a so-called “black hole” address, and access to them is permanently lost. Developers published links to the transactions showing the transfer of the keys to the black hole.
In addition, Vaults use a proof-of-deposit set of tokens called iTokens. These are interest-bearing tokens that users receive upon depositing funds into vaults. In a general sense, Proof of Deposit serves as a mode of verification between lenders and borrowers. For instance, a deposit of XY into the vault will yield iXY, which is interest bearing. Interestingly, the user does not have to withdraw their principal amount from the vault when they require funds, as they can opt to exchange their iTokens directly. Also, these interest-bearing tokens can be used as collateral for debts and staked in the DeFi space. Thus, these iTokens aim to prevent the outflow of funds from entering the YFII platform’s vault and provide users with a straightforward method to engage in YFII’s operations. These two security methods were used to ensure the project is hack-proof.
How do I buy DFI.MONEY (YFII)?
DFI.MONEY acts as an aggregator that automatically puts users’ digital assets to work for high-yield profits.
The YFII token can be used for a wide range of uses like staking and voting.
YFII tokens can be easily purchased by the following steps.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy YFII through your trading account.
Which Cryptocurrency Wallet Supports DFI.MONEY (YFII)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as DFI.MONEY (YFII). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their YFII wallet because it offers a simple and interactive interface, making it easy for people to navigate its system.
