Blog Crypto DFI.money (YFII) coin review: the Yearn fork making big strides

DFI.money (YFII) coin review: the Yearn fork making big strides

date July 12, 2021 time 5 min read 221 views

If you thought Yearn.finance offered a promising way to maximize crypto returns, wait until you learn about its fork, DFI.money. The platform solves one of Yearn’s core limitations while retaining its solution for achieving high yields. Let’s take a deeper look at how DFI.money works and whether it’s a good option for investors.

DFI.money (YFII) is the result of a major split in the Yearn finance community. After a group of members tried and failed to introduce a mining system into the platform, they set up DFI.money as a fork to carry out their proposal. The rest is history.

If your head is spinning as you wonder what a fork is and how the initial Yearn protocol works, you’re in the right place. Just sit back and let us explain — we’ll even break down the recent controversies and price movements.

What is DFI.money?

DFI.money launched in August 2020. It’s unusual for anything in the crypto world to have more than a few years behind it, but even by usual standards, YFII is a baby. 

Still, don’t underestimate it.

As a yield farming platform, DFI.money helps you earn better and more stable returns from your crypto investments. Liquidity is always changing in crypto exchanges, which causes constant price shifts and makes it tough to access the best rates without manually comparing all platforms. Yield farming aims to solve this problem.

Different protocols use different methods, but DFI.money automatically moves funds between various lending pools (like Aave and Compound Finance), ensuring you can always access the best returns with minimal time investment.

If you’re a crypto enthusiast, you might be thinking this sounds familiar. That’s probably because, as touched on already, the platform emerged in the shadow of Yearn.

It’s impossible to understand DFI.money without first examining its predecessor, so let’s go ahead.

Before you consider investing in DFI.money, make sure you understand how the token and platform work.
Before you consider investing in DFI.money, make sure you understand how the token and platform work. (Source: dfi.money) 

DFI.money versus Yearn finance

Like DFI.money,  Yearn finance is a yield farming DeFi protocol that helps you earn the highest rates possible on crypto investments. 

But the platform faced a key problem: its fixed number of tokens was unsustainable since the supply would eventually run out, yet introducing more could cause inflation (which would make the native coin YFI lose value). 

The majority of the community voted for the same “halving method” used by Bitcoin, which gradually reduces how quickly new tokens are issued (ensuring they remain finite and valuable).

Despite strong support for the proposal, it ended up being rejected, resulting in the split we touched on earlier. Now, DFI.money uses this very same halving method. 

YFII is a hard fork, meaning it’s based on the original Yearn chain — the two platforms share 98% of the same code — along with some additions. 

The key difference here is that DFI.money fork halves its governance tokens weekly. YFII has three different pools; each one distributed 10,000 tokens in the protocol’s first week (in July 2020) and halved the amount issued each subsequent week. 

Meanwhile, YFI kept its tokens capped at 30,000 tokens, until a recent vote to increase the supply by 20%.

Is DFI.money a good investment?

No matter how much you love learning about different cryptocurrency protocols and the reasons for their establishment, you probably care even more about whether they’ll make a good investment.

So, let’s dig straight into YFII’s price history.

DFI.money price history

DFI.money enjoyed an impressive bull run mere weeks after its launch, reaching an all-time high of more than $9,000 in September 2020. Sadly, this didn’t last.

The token’s value dipped significantly within months and has been unable to recover ever since. For the remainder of 2020 and throughout 2021, YFII has maintained a value between $1,500 and $3,200, mainly on the lower end.

Since the worst price movements happened before the general crypto crash in May 2021, the woes of YFII can’t be pinned on the crypto market’s general trends. Instead, the main culprit is a coding-related controversy.

The DFI.money price hasn’t had a good run recently, but don’t rule it out yet. (Source: Pixabay)

YFII controversies

Shortly after its launch, the popular cryptocurrency wallet app MetaMask issued a phishing warning about YFII, which raised doubts about the token among investors and the crypto community.

It was revealed that DFI.money had a backdoor in its code — the protocol’s owner key allowed the creation of infinite YFII tokens, which would render the system useless.

The community addressed the problem swiftly by “burning” the owner key, which stopped anyone minting tokens without members’ approval. Unfortunately, the effectiveness of this solution wasn’t enough to aid a price recovery.

Also, some crypto enthusiasts view forks as an ethical dilemma. Instead of channeling support to one crypto platform, they divide it between multiple protocols, dividing the community and weakening the chances of any system achieving success. his could also affect YFII’s popularity. 

DFI.money coin review

By now, you should no longer be a stranger to the world of DFI.money. But with so much to digest, it’s helpful to have a brief overview of how the digital token fares and some factors you should consider before deciding to invest.

One potential problem is that YFII is seen as the eastern version of YFI: it was developed in China and has achieved the greatest popularity among Chinese investors. While this might not sound like an issue, it’s resulted in the bulk of DFI.money activity happening on China’s WeChat instant messaging platform, making information inaccessible to many US investors (unless they happen to be fluent in Mandarin).

YFII’s price is still low at the moment compared to its all-time high, meaning that now could be a good time to get involved — but there’s no guarantee of a recovery., As we’ve seen, YFII is still a (very) young cryptocurrency — it’s still evolving and has attracted its fair share of controversies so far. There’s no way of knowing if it will ride the wave and regain favor in the crypto world.

Ultimately, it’s up to you to assess the risks and decide whether you believe in DFI.money’s long-term potential enough to invest.

Where to buy DFI.money

If you like what you’ve heard so far and you’re hopeful about YFII’s future, you might be wondering exactly how to get involved.

You can buy DFI.money tokens on major cryptocurrency exchanges like Binance, OKEx, and FTX. Then, move your funds from the exchange to a DFI.money wallet for storage (unless you plan on trading them over the short term). This ensures you maintain control of your assets and keep them safe.

Or, you could try something a little different.

Once you’ve got hold of your tokens, you don’t need to leave them gathering dust in your crypto wallet. Thanks to innovative new crypto platforms, you can now do far more with your digital assets. 

Buy with MyConstant loans

With platforms like MyConstant, you can collateralize your YFII coin to receive instant loans with low-interest rates. Other benefits include:

  • 24/7 customer service.
  • Rates as low as 6.5%.
  • Early repayments for lower rates.
  • Instant matching.
  • Store and borrow against 70+ different cryptocurrencies.

Or, if you’d prefer, simply store your cryptocurrencies (including YFII) in our multi-cryptocurrency wallet.

Sound interesting? Sign up for a free account today and start investing in YFII token.

Put your DFI.money tokens to good use by using them for a crypto-backed loan on MyConstant.
Put your DFI.money tokens to good use by using them for a crypto-backed loan on MyConstant. (Source: MyConstant.com)

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George Schooling

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