What is DFI.Money (YFII)?

DFI.MONEY, commonly known as YFII, emerges as a derivative of the well-known decentralized finance (DeFi) aggregator platform, yearn.finance (YFI). Launched in July 2020, DFI.MONEY aims to optimize DeFi investors' returns, aligning with proposed modifications outlined in the YIP-8 upgrade plan.

Beyond protocol adjustments, DFI.MONEY introduces new offerings, with the Vault standing out as a prominent addition described as its "killer product." This strategic development enhances the platform's functionality and provides a compelling value proposition for DeFi users.

The native token is associated with DFI.MONEY is YFII, characterized by a fixed supply. Liquidity providers engaging with the network earn YFII tokens commensurate with their participation in the DeFi ecosystem. As a fork of yearn.finance, DFI.MONEY aims to contribute to the evolving landscape of decentralized finance, offering innovative solutions and products to the DeFi community.

Who is the founder of DFI.Money?

DFI.MONEY had its origins in a hard fork of yearn.finance, a decentralized finance (DeFi) aggregator developed by Andre Cronje. The history traces back to Cronje's departure from the initial version of yearn.finance, known as iEarn, in early 2020. Cronje later returned to contribute to its ongoing development, coinciding with the rising popularity of DeFi in mainstream finance.

A significant development occurred in July 2020 when mining and farming activities were associated with yearn.finance's YFI token concluded. During this period, a proposal aiming to safeguard liquidity provision from large investors gained 80% support from protocol participants. Despite the substantial backing, the proposal fell short of the 33% quorum required by yearn.finance for adoption.

In response, a segment of users decided to initiate a hard fork of the protocol, leading to the creation of DFI.MONEY. This fork introduced its native token, YFII, and implemented the proposed changes outlined in YIP-8. YIP-8 entails a weekly reduction in YFII rewards, aligning with a pattern reminiscent of Bitcoin (BTC). The hard fork was an instrumental step in realizing the envisioned modifications within the DeFi ecosystem.

What Makes DFI.MONEY Unique?

DFI.MONEY plays a comparable role in the decentralized finance (DeFi) landscape as yearn.finance, serving the same purpose but adhering to distinct token protocol rules and incorporating additional features. Its appeal extends to users familiar with its precursor, particularly those who supported YIP-8, along with new entrants in the DeFi space seeking to optimize returns through liquidity provision.

The protocol's emphasis on community ownership is evident, with a notable absence of default commercial incentives such as developer rewards, as highlighted on DFI.MONEY's website. Participants engage by joining one or both of the liquidity pools featuring Curve (CRV) or Balancer (BAL), earning YFII tokens as rewards for their liquidity contributions.

DFI.MONEY introduces the Vault as a novel feature, designed to automatically secure users the highest returns for any token. This is achieved by implementing user-submitted strategies, eliminating the need for manual transaction setups by the users themselves. The platform's innovation lies in providing a comprehensive suite of features that cater to diverse DeFi participants, ensuring flexibility and efficiency in optimizing returns.

Explain the network security of DFI.MONEY?

DFI.MONEY asserts that YFII, its native token, maintains a secure and fixed supply of 40,000 tokens, a feature safeguarded against manipulation by developers. To achieve this, the developers transferred keys granting the authority to mint new tokens to a designated "blackhole" address. Importantly, access to these keys has been intentionally and irreversibly forfeited, ensuring the perpetual unavailability of any mechanisms to create additional tokens.

The transparency of this process is underscored by the developers, who have published links to the relevant transactions depicting the transfer of keys to the blackhole address. This strategic measure aligns with the platform's commitment to providing a tamper-resistant and predictable tokenomic model, reinforcing the confidence of users and investors in the integrity of YFII's fixed supply.

Read more information of DFI.Money, visit Suncrypto Price Explorer.