The protocol is currently popular in the Chinese DeFi market. YFII is a DeFi protocol that facilitates yield aggregation and uses a token halving model to ensure equitable distribution of tokens. The YFI clone holds that its halving model mirrors that of Bitcoin (BTC) “so that the tokens will be fairly distributed to the community.” What is YFII? YFII is led by an anonymous team that goes by the pseudonym “White Noise”, providing updates on Medium. In the first week, 30,000 tokens were removed from total circulation. What is YFII? A Guide to the Decentralized Mining Pool YFII was born through a hard fork and implemented the YIP-8 proposal. Unfortunately, the needed 33 percent quorum was not achieved. When votes were cast, 80 percent were for the proposal, while 19 percent were against. In the proposal, the system would initiate a weekly halving of issued YFI tokens to provide for a steady change in liquidity. To prevent inflation, a YIP (yEarn Improvement Proposal)-8 was issued. However, governance on Yearn is enabled using the YFI token.īut, as the token was issued to yield farmers for pools’ liquidity provision, it presented a looming drop in pool liquidity because of a weekly supply increase of 30,000 YFI. The platform uses yToken to facilitate the withdrawal of earnings and deposits.
Instead, it aggregates deposits and delivers them to a network that would give depositors the highest interest. Yearn is not necessary a DeFi protocol like Compound or Aave. To have a clear background of how and why YFII was born, let’s start from the top Yearn.
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