YFI is the governance token for the Yearn liquidity aggregator.
YFI is a low-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Yearn, a protocol rated as Solid. The asset has a fixed supply.
YFI is highly correlated to the overall market.
YFI is the governance token for the Yearn protocol. The primary use for YFI currently is to govern the future direction of the decentralized yield aggregator. Yearn charges a 0.5% management fee and 5% fee on all earnings. The protocol's treasury is designed to hold $500K at any time, with any excess profits distributed to YFI token holders.
The total supply of YFI is capped at 36.666K tokens. YFI was launched with no supply and no pre-mine for the team. Instead, the initial 30K tokens were distributed proportionally to users of the platform and liquidity providers (LPs) via different mechanisms. In an effort to boost its treasury, the protocol minted an additional 6.666 YFI tokens, with a third set aside for existing contributors (contingent on their continued involvement).
The ongoing success and adoption of Yearn products is expected to accrue value to token holders through positive price impacts. The introduction of YFI staking is expected to drive additional utility to holders as well as a redistribution of protocol revenues.