DeFi yield farmers have deposited more than $100 million into YFI token to boost their annual percentage yield (APY).
Currently, decentralized finance (DeFi) investors have poured in millions of dollars in a “valueless” token called YFI launched by yEarn. yEarn is a DeFi yield aggregator that shifts depositors funds across lending protocols offering the best rate. Recently, the firm launched a governance token called YFI to transfer control of its many products to users.
Valueless YFI token
According to the team, the token has no value, “there is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on uniswap.” The token can only be earned through the yEarn platform and has a total supply of 30,000.
Yield farmers can earn YFI by providing liquidity to platforms referenced by the yEarn team and stake the output tokens in distribution contracts. The team will provide users with an interface to perform the operations, and users will earn a specific amount each day.
What can you do with YFI tokens?
yEarn team has launched a multitude of projects including yearn.finance, iliquidate.finance, and ileverage.finance among various others. All of these systems operate under control mechanisms, have configurable fees, and other rules that can be edited.
So far, these mechanisms have been controlled by the yEarn team. However, with YFI, the team is shifting the control to the community through its YFI token.
The token cannot be bought; it can only be earned by providing liquidity to the aforementioned pools.
The token drove $150 million of deposits in just three days after its distribution started.