DFI.Money (YFII) is a fork of the decentralized finance (DeFi) aggregator platform Yearn.finance (YFI). Launched in July 2020, this project aims to optimize returns for DeFi investors while adhering to the changes proposed in an upgrade plan known as YIP-8.
DFI.Money's native token is YFII, a fixed supply token earned by liquidity providers based on their interaction with the network.
DFI.Money (YFII) is a DeFi protocol that facilitates yield farming and uses the token halving model to ensure a fair distribution of tokens. YFII is a fork of YFI.
DFI.Money (YFII) powers decentralized lending, acting as the driving force behind decentralized finance (DeFi) projects. Those providing liquidity to these projects earn interest through yield farming or liquidity mining.
Some DeFi networks have their own tokens that increase the rewards earned by farmers. Others, like YFII, have forked from other protocols using a planned halving model to prevent a decrease in pool liquidity.
In the Chinese market, YFII quickly gained the trust of the DeFi community shortly after splitting from YFI. The reasons given for the hard fork include preventing wealthy participants from disrupting the party.
DFI.Money (YFII) is a DeFi protocol that facilitates yield farming and uses the token halving model to ensure a fair distribution of tokens. The protocol is currently very popular in the Chinese DeFi market.
While Yearn.finance (YFI) was developed in the West, DFI.Money (YFII) was developed in the East. The version of the project in its new market has shown much greater success compared to its Western counterpart.
After being launched towards the end of June 2020, several Chinese liquidity miners joined the new force, but within a few days, the network attracted crypto exchanges, virtual currency hedge funds, mining pools, and centralized finance projects.
The protocol has a strong community gathered on WeChat. This reflects the diplomatic impasses between China and the US, as discussions on the social media platform effectively block English-speaking people from the US.
The DFI.Money (YFII) network has disabled all methods for updates or modifications. This situation will make it difficult to upgrade the system's token economy.
Experts have warned that the platform's community must explore ways to decentralize to attract a vibrant ecosystem, but as it stands, the community may also be chasing profits from crop farming.
Governance issues on the network are delegated to 11 signatories using a multisig model. In this case, consensus must be reached by seven of the 11 signatories. However, the project provides governance through a decentralized autonomous organization (DAO), making this a temporary governance model. Only DeFi protocols like SushiSwap cannot audit YFII's smart contract. Additionally, transactions of the project tokens can be performed on a few known exchanges.

To understand how and why DFI.Money (YFII) was created, one must start with Yearn. Yearn does not need a DeFi protocol like Compound or Aave. Instead, it collects deposits and sends them to a network that will give depositors the highest interest. The Yearn platform uses yTokens to facilitate the withdrawal of earnings and deposits, but governance in Yearn is enabled using the YFI token.
Since tokens were given to liquidity providers of pools, there has been a noticeable decrease in pool liquidity due to the weekly 30,000 YFI supply increase. The YIP-8, known as the yEarn Improvement Proposal, was published to prevent inflation. The proposal includes starting the halving of the weekly distributed YFI tokens to ensure a stable change in liquidity.
When votes were cast, 80% were in favor, and 19% were against. Since the required 33% majority was not reached, YFII was born through a hard fork and implemented the YIP-8 proposal.
In the first week, 30,000 tokens were removed from total circulation. YFII is managed by an anonymous team using the pseudonym "White Noise" on Medium. The YFI clone argues that the halving model mirrors the Bitcoin (BTC) model, thus ensuring a fair distribution of tokens to the community.

DFI.Money emerged as a hard fork of Yearn.finance, a collector of DeFi yields created by Andre Cronje.
Cronje left the original incarnation of Yearn.finance, iEarn, early in 2020 to continue its development, after which DeFi became more popular.
In July 2020, the mining and farming of Yearn.finance's YFI token ended, and the proposal to protect liquidity provision from whales received 80% support among protocol participants but was not accepted as it did not reach the required 33% quorum.
As a result, a group of users chose to fork the protocol to create DFI.Money with its own token, YFII.
The hard fork implemented the proposal known as YIP-8, which reduced YFII rewards weekly, following a model popularized by Bitcoin (BTC).

DFI.Money (YFII) performs the same role in the DeFi market as Yearn.finance, subject to different protocol rules and some new features. Therefore, its appeal is directed at previous users who voted in favor of YIP-8 and new DeFi investors looking to maximize their returns by providing liquidity.
DFI.Money (YFII)'s website states that the protocol is owned by the community and does not offer trading incentives like developer rewards by default.
Users participate in one or both of two liquidity pools, Curve (CFI) or Balancer (BAL), and earn YFII tokens as a reward for providing liquidity.
DFI.Money (YFII) has also introduced Vault, a new feature aiming to achieve the highest returns on any token automatically based on strategies submitted by users, without the need for manual transaction adjustments by the users themselves.

DFI.Money (YFII) has one of the highest investment returns in some pools, reaching up to 2000%. Despite high investment returns, liquidity mining carries risks such as token price volatility and unseen errors in the smart contract.
The yield farming procedure on DFI.Money (YFII) depends on the token the crop farmer is willing to risk. This is also divided into three pools.

This pool is for those who own yCurve tokens. To farm on DFI.Money (YFII), an individual trading for the purpose of farming must withdraw from the third pool in YFI to obtain yCRV tokens. Those without tokens can visit www.curve.fi/iearn and deposit USDT, USD Coin (USDC), True USD (TUSD), or DAI to create yCRV tokens.
Then, the tokens are placed in the Yearn pool. The staked funds are automatically invested in different DeFi projects. While this has a potential for increased returns, it also carries a high risk of loss if the security of these systems is compromised.

The second pool uses DAI or YFII tokens to allow yield farming. Staking is done in the Balancer (YFII-DAI) pool where staked BPT tokens are created in the Balancer Liquidity pool. It’s important to note that adding liquidity directly to the second pool has been halted to reduce the risk of infinite money printing.
Funds deposited in this pool are aimed at market maker automation. Therefore, an unpredictable large liquidation of YFII tokens can negatively affect the token price, leading to a smaller asset pool.

In the third pool, a yield farmer must share YFII tokens in the “governance” pool to receive rewards. A fourth pool has also been proposed but is not currently active. The fourth pool would facilitate interest earnings from emerging DeFi assets by staking YFII or its derivatives.

YFII is an ERC-20 standard token with a fixed supply of 40,000 YFII. According to the features specified and accepted in YIP-8, no tokens were taken from the total supply for pre-production, presale, or developer allocation.
DFI.Money states that the only way to earn YFII is by providing liquidity to the protocol. Tokens are distributed based on liquidity provided, and rewards decrease weekly. Each of the two liquidity pools started with a supply of 20,000 YFII.

DFI.Money states that YFII has a guaranteed fixed supply of 40,000 tokens that cannot be manipulated by developers. This has been made possible by sending the keys that allow new tokens to be printed to an address known as the “black hole,” permanently losing access to them. Developers have also published links to transactions showing the transfer of the keys to the black hole.

Since its launch, YFII has become a popular trading token. As of October 2020, it is available on multiple major exchanges with trading pairs including cryptocurrencies, stablecoins, and other DeFi tokens.

The DeFi world is rapidly changing to include participants like SushiSwap and yield aggregators like YFII.
Additionally, with yield farmers rushing for quick returns, the current liquidity mining craze, from a distance, resembles the initial coin offering (ICO) frenzy of 2017. As the DeFi protocol and its forks take shape, time will tell who is playing with whom, and who the players are in this scenario.