The Yearn Finance is a Defi protocol built on the Ethereum blockchain. It contains a set of products that provides yield generation lender aggregation and insurance on the blockchain.
The protocol is maintained by many independent developers and governed by the holders of the YFI token. There are four yearn finance (YFI) in the Defi market, including the YFII or the DFI Money.
The YFI community split after some members failed to integrate a mining system into the platform. This split gave birth to the DFI.Money; they set it up to help them accomplish their mining vision.
In this article, we will review this popular DFI Money, also known as the YFII. The review intends to give readers more insight on what the DFI Money entails, the price history and analysis, etc.
What is DFI.Money?
DFI. Money is a fork of Yearn finance (YFI)-a popular decentralized finance (Defi) aggregator platform. The developers launched it in July 2020 for optimizing returns for investors while maintaining the YIP-8 upgrade plan. YIP-8 is a guide containing the proposed changes and upgrades made from the main yearn finance protocol.
The yEarn Finance fork is a yield farming network that helps you earn a more stable return from your investments. It tends to solve the problem of liquidity changes, leading to constant price variations in the Defi space.
Investors no longer need to access the best market rates in all platforms manually with the DFI.Money. It moves funds automatically between the various lending pools and ensures that investors access the best return within a short timeframe.
The various lending pools or Defi protocols include the Aave or Curve and the Compound Finance. Also, the DFI. Money protocol has released some products, which include the Vault as the main product.
In addition, it offers a token distribution model that’s different from YFI, and the token emission is divided into two weekly (YIP-8). This economical feature facilitates active participation in $YFII mining and allows late investors to earn still.
More so, the DFI. Money has a native token known as the YFII. It has a fixed supply and serves as the governance token. The liquidity providers in the platform earn it according to their interaction of investment in the network.
Who Are the Founders of DFI.Money?
DFI.MONEY emerged as a hard fork of the Yearn finance- an aggregator that enhances Defi returns founded by Andre Cronje. In early 2020, Cronje left iEarn, the original project of the Yearn finance, and returned afterward to continued its development. He finished up the popular project as Yearn finance and made the Defi the protocol’s mainstream. The mining and farming of the Yearn finance- the YFI token ended in July 2020.
However, there was a proposal to secure the liquidity provision from Whales which had 80% support from the protocol users. The proposal was later dismissed as it didn’t meet the Yearn finance 33% mandated quorum requirement.
This development made some users leave the system to create a hard fork-the DFI. Money, with YFII as its token. The DFI. Money adopted the proposal terms called the YIP-8. It decreases YFII weekly rewards using the Bitcoin half-sharing model.
How is DFI.Money (YFII) Different from Yearn Finance?
Like most folks in the digital industry, the DFI Money has some major differences from the original yEarn Finance. They vary in some important features as we will outline below;
The proposal that led to the development of DFI. Money was to increase the YFI token supply from 30,000 to 60,000. It is known as the YIP 8 proposal and was done by a member of the community.
He intends to distribute these tokens through a Bitcoin halving model, reducing the weekly YFI issuance rate and decreasing inflation. However, the YFI rejected YIP 8 as they have already planned how to issue new tokens in the future(YIP 0).
The proposal was criticized on the basis that the model was Bitcoin’s deflationary. They stated that it’s not suitable for yEarn and its community instead.
They agreed that the network needs to create a unique mechanism to check inflation and distribute new tokens. Shortly after this criticism and rejection, members who support the proposal decided to create a fork- YFII (DFI.Money).
The YFII developers implemented Bitcoin’s halving model, minted a new YFII token with few other features different from yEarn. As a result, the DFI Money has presently attracted various users and digital asset exchanges adopting YFII. These users are the crypto whales and multiple centralized finance players.
To summarize the above explanations, we are going to discuss the difference between DFI.Money and Yearn Finance using these two points.
Zoom in: This is part of the economic design of the DFI.Money that differentiates it from the parent protocol. It allows users to mine the YFII token while still permitting those who came late to receive rewards. The DFI. Money fork is taken to be controversial by some of the community members even though it has a liquidity of $20Million. It also allows the Balancer (Defi protocol) to remove the YFII DAI pool.
On September 1st, Binance listed the YFII coin making it more popular for crypto farmers.
Zoom out: The DFI Money has come to stay in the Defi sector. The community recently issued out a proposal to collaborate with other crypto developing teams using YFII as a seed coin. In the token reward mechanism, 5% of the rewards go to a new pool to generate a rewards pool worth $1Million.
Controversy Around YFII (DFI.Money)
The YFII, since after its creation, shares a 98% similarity in code with its parent protocol, which has raised a red flag. The yEarn Finance on its own is seriously contending against this recent development in the Defi space.
The DFI. Money was announced by a pseudonymous (group) developer who posts updates about the YFII token on Medium. They are called the White Noise.
The YFII fork is called the ‘Eastern’ while the parent YFI is known as the ‘Western’ Yearn Finance. This was coined from the fact that DFI. Money gained popularity among Chinese users. It hosts many active users on the renowned WeChat-an, an instant messaging application based in China. It allows local players to participate in a non-English Defi platform fully.
However, many crypto users became suspicious about the DFI.Money project because of the initial mistakes of the developers.
They left potential backdoors in the code of the protocol at its early stage. For instance, the minter and governance addresses allowed users to create as many tokens as possible. This made MetaMask warn its users of the potential phishing activity of the DFI. Money while the Defi blacklisted the YFII.
The DFI. Money later resolved these issues by denying users access to infinite minting. Instead, they mandated anyone that wishes to mint the YFII token to get his proposal approved by the community members.
DFI.Money (YFII) Token Review
The YFII is the native and utility token of the DFI. Money protocol and has no pre-mining history. It is an ERC20 token, and there is no record of the Initial Coin Offering and no development team rewards. Therefore, the only available option to get the YFII token is to provide liquidity to the pools.
As a utility token, it is used in governing the protocol and a key farming yielding tool to different Defi protocols.
The YFII token is used in allotting revenue to users and also for voting in the DFI.Money ecosystem. The token has the following advantages.
- It has a high demand in the Defi space with various earning opportunities for users.
- The YFII has an efficient token distribution mechanism.
- It is a fast-growing and promising token with an increasing population of users.
- The token holders manage the community.
The YFII has a total fixed supply of 40,000 tokens in two pools, having 20,000 tokens each. The token distribution follows the halving mechanism, 10,000 for week one and half of the amount in the subsequent weeks.
The fact that the YFII token was developed in China poses a problem for the token’s growth. It has gained most of its popularity among Chinese investors and host applications in the Chinese language, as mentioned earlier.
However, this development made users unable to enjoy their offers like WeChat except if they are literate in the language.
YFII (DFI.Money) Price Performance?
The YFII recorded a major price acceleration about a month after the protocol was launched in 2020. It jumped from $1,100 in July to $8,690 in September, making an approximately 690% increase and gain for early birds.
The token hit its all-time high of $8,690 on September 1st and quickly went down to $3,159 on the 8th. It re-bounced again, taking an upward move after hitting half of its value between September 2nd and 9th.
However, after a minor rise between September 9th and 14th, the YFII has recorded a low benchmark till early August. It traded at the range of $2,114 within the period and seemed to increase a bit on August 3rd.
Although the YFII token price is still lower than its all-time high price, this is a good opportunity for intending investors. There is no guarantee that it will rise tomorrow owing to the high volatility nature of digital currencies.
YFII Price Live Data
As of the time of writing, the DFI.Money trades at $4,415.90 with a 24-hour trading volume of $123,400,797.
It recorded an increase of 8.76% in the past 24 hours. The DFI. Money has a maximum supply of 39,375 YFII coins and a circulating supply of 38,596 YFII coins. The live market cap price is $159,429,009.
What Makes DFI.MONEY Unique?
The DFI. Money plays a similar role with the Yearn Finance in the Defi market except for the new distinguishing features.
It targets to serve the parent protocol users who voted in for YIP-8. And also welcome new Defi investors who intend to earn more rewards by providing liquidity.
The DFI. Money community is owned by its members and doesn’t ordinarily give commercial rewards like developer rewards.
The protocol has two liquidity pools that feature (Curve) CFI or (Balancer) BAL. Investors can provide liquidity pools to one or both of them to earn more token rewards.
The DFI. Money has introduced a new feature known as the Vault. It’s aimed at automatically gaining the highest possible returns of all tokens following the user’s proposed strategies. The users here don’t need to set up transactions.
Where to buy DFI.money
If you are an intending investor and have been thinking of where to buy the YFII token, this section is for you. There are various exchanges where you can buy this popular fork token, and the process is simple.
Major crypto exchanges like Binance, FXT, and OKEx already have the YFII token listed and trading on their platform. Other good exchanges that trade on the token include Tokocrypto and Huobi Global.
The buying process requires that you will first register or sign-up with any of the preferred exchanges with your details. Then using a debit/credit card or any other supported payment method, transfer money into your exchange wallet and buy YFII.
You can store your fund on the exchange if you intend to trade the DFI.Money crypto for the short-term. Otherwise, move your fund to a DFI.Money wallet to maintain control over your holdings and store them safely.
You can start trading as soon as you get hold of your assets. You can read up a trading guide or look for an old investor to coach you. Remember to apply caution while trading and research more on any digital asset before investing your money.
A wallet is an electronic device for storing digital assets. It can either be cold or hot, but here, we will be discussing the few trusted wallet for storing the DFI.Money token.
The Trust Wallet
This is a wallet supported by Binance officially. It is among the popular wallets investors and crypto traders use to safeguard their assets, including the. It’s a mobile wallet and can be downloaded on Androids and iOS. It is secure, easy to operate, and good for beginners. Moreover, you can use it to receive the YFII token directly and other ERC20 tokens that you wish to add to your portfolio.
You can visit the trust wallet web page to get started.
The Atomic Wallet
This is another wallet for storing your YFII token. It has several versions available on Android, iOS, and desktops. The Atomic wallets can be used to store over 300 cryptos, including the YFII token and other BEP2 and ERC20 tokens.
Its numerous available versions can make it less secure for storing your YFII token, as monitoring them may be difficult. You can receive your YFII token directly into this wallet together with other tokens that are ERC20.
MyEther wallet is one of the most tested and trusted wallets for your token. You can use it to store YFII and other ERC20 tokens on the Ethereum blockchain without downloading any software.
MyEther wallet provides a web-based storage solution for investors and traders, allowing them to log in from anywhere. You can access your funds using a secure internet device from hardware wallets like the Trezor or Ledger.
You should be cautious of phishing attempts by fake but similar websites if you must log in from another hardware wallet. Like other wallets above, you can also receive your YFII token alongside other ERC20 tokens with this wallet.
In a nutshell, you can use the DFI.Money wallets for the following;
- Receive, store and send your YFII crypto in a free and secure manner.
- Easily use your Android or iOS to access your wallets and assets.
- Transact freely between free wallet users without any fee.
- Store and maintain a portfolio having up to 100 different cryptos in it.
- Have access to real-time price charts for exchange rates and check the fiat currency equivalent of your YFII holding.
- Access your wallet account using a free wallet website on Windows, OSX Linux based OS, and Ubuntu
Conclusion DFI.Money review
This article, DFI.Money review explains the mystery behind the development of the protocol. It describes the protocol as a hard fork of the popular Yearn Finance in the decentralized finance ecosystem.
This implies that the DFI.Money originated from the Yearn Finance protocol with few new features and adjustments. It’s aimed at gaining the highest rewards for users following their strategy while allowing latecomers to still earn.
The DFI.Money project was masterminded by a pseudonymous (group) developer called the White Noise. It has a native ERC20 token which also serves as the governance token of the platform- the YFII.
The protocol has a total token supply of 40,000 tokens in two pools. Each pool has a total of 20,000 tokens. The total YFII in circulation presently is 38,596 YFII coins at the rate of $4,170 per token.
However, the YFII coin recorded a great success in the fork history barely a month after the protocol was launched. It gained popularity when it hit an all-time high in September, making it more successful like the parent protocol.
The YFII price is down presently, and this is a good opportunity for intending investors to join the platform. We advise that you do thorough research of the crypto you want to invest in before becoming involved financially.