Yearn.finance (YFI) is the native cryptocurrency of the Yearn.finance decentralized finance (DeFi) platform.
Yearn.finance is a decentralized ecosystem of DeFi products and protocols designed to optimize yield farming and provide automated strategies for users to earn maximum returns on their cryptocurrency holdings.
Its primary function is to optimize yield farming strategies across various DeFi protocols. For instance, it automatically reallocates user funds to different DeFi platforms to maximize yield and returns.
Yearn.finance gained significant attention in the DeFi space for its innovative yield optimization strategies and its community-driven governance model. The project has demonstrated the potential of automated yield farming to generate competitive returns for users.
Vaults and strategies
Yearn.finance offers “Vaults” that allow users to deposit their cryptocurrencies and earn yields through automated yield farming strategies. These strategies are managed by smart contracts, which continuously seek the best opportunities to generate returns.
Yearn.finance is designed to be a self-sustaining ecosystem. The platform generates revenue through fees on Vault deposits, which are used to buy and burn YFI tokens, reducing the token’s supply over time.
YFI Token
YFI is the governance token of the Yearn.finance platform. YFI holders have the power to vote on proposals and changes to the platform’s parameters, such as fee structures, new strategies, and partnerships.
Source: https://coinidol.com/yearn-finance-yfi/