Overall the long term objective of YFI is to leave control of the total supply of YFI and distribution up to the community to decide. On top of this, even if they do agree, the community will have 3 days notice before anything happens.
The purpose of this is to remove single party risk as 6 of the 9 keyholders are required to agree to create new coins. Luckily this did not happen, as he quickly created a multisignature address which requires 6/9 key holders to agree to minting new tokens. If he did this, it would of been possible for him to take the entirety of Pool#2 and Pool#3 on Balancer, with a total of more than $150 Million USD. Earlier this week it was discovered that there was a master key which permitted YFI developer Andre Cronje to mint new coins and potentially flood the market with new coins. Currently there is a max cap of only 30,000 YFI tokens. One of risks that was mitigated by the team was with token issuance. This type of cyclic farming create pseudo ponzinomics and could lead to potentially disastrous results. Simply put, DeFi farmers are locking up YFI and DAI in order to receive BPT tokens which could be staked on ygov.finance to gain an additional $YFI. On top of this, the incentivized Balancer pool (YFI 2%, DAI 98%) requires the staking of $YFI, which locks up further supply. The token follows the “Governance” model where it’s value comes from voting on where the protocol will go next. This being said, the current wave hype wave and token dynamics have driven up the value of the token. We re-iterate, it has 0 financial value” Andre Cronje “We have released YFI, a completely valueless 0 supply token. Creator of YFI, Andre Cronje ( has stated that the token has no intrinsic value. Tokenholders are entitled to vote on upcoming governance decisions for the network – such as potentially stopping all-new distribution of the token. YFI is the governance token for yEarn (previously known as iEarn). What is YFI token Liquidity provider profit on Y Pool Other tokens such as YFII and YFV still have token distribution for yield farmers. This means it’s unlikely that new $YFI tokens will be distributed in the future. Although initially there were plans to distribute more tokens, attempts to come out with a plan to do so have all been voted down in the Y governance. When YFI first launched, all 30,000 tokens were distributed to stakers on the platform. Unfortunately “Yield Farming” for the YFI token has ended.
Yfi staking how to#
Deposit and stake option on Curve.Fi How to to earn YFI tokens This type of pool is usually considered a higher risk due to possible vulnerabilities not just with its own smart contract, but with other smart contracts too. This pool is a collection of stable coins that are automatically invested in different lending protocols. The first and easiest pool to access is the Y Pool on Curve.Fi. There are two pools that reward the YFI token for staking.
Yfi staking series#
yPools are considered riskier than other DeFi products such as Compound because lend capital out to a series of protocols – which themselves could be vulnerable to critical vulnerabilities. These reserves are then lent out to different protocols that offer the best rates of return, including Compound, Aave, and dYdX. The pool itself is comprised of 4 different stable coins – USDT, USDC, DAI and TUSD – with a total of over $103 Million USD in currency reserves ( Assets Under Management – AUM). As a DeFi protocol, a smart contract keeps the invested funds – which makes the project non-custodial. The iEarn “Y” pool is a yield aggregator – it automatically invests its capital into different DeFi projects – selecting those with the highest yield and return on investment.
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