Yearn is an aggregator platform supporting multiple DeFi protocols, automatically shifting funds between them to help depositors achieve the highest yield. The platform consolidates Compound, dYdX, Aave, and DDEX protocols. When users deposit funds, they are automatically allocated to the protocol offering the best returns at that time. Yearn then issues users a receipt called yToken, which they can redeem for their original deposited tokens plus accrued earnings.
YFI mining was set to stop on July 26th. To prevent a large-scale withdrawal of liquidity from mining, community governance YIP-8 proposed an increase in issuance, halving the weekly issuance for each pool. Although this proposal received over 80% support, it failed because the total votes did not meet the minimum requirement of 33%. To ensure Andres brilliant concept and system wouldnt be controlled by early whale accounts, a fork of the YFI project was created, known as YFII. YFII adopts a similar halving issuance mechanism to Bitcoin, ensuring a fairer distribution of tokens among community members.
There will be a total of 60,000 YFII tokens, with 20,000 tokens allocated to each of the three pools. Each pool starts with 10,000 tokens, with the production halving every seven days. YFII tokens are distributed according to the share of liquidity provided by DeFi users to each pool. The entire allocation of YFII will be completed over the next ten weeks.