Yearn.finance is known as a suite of products within decentralized finance (DeFi) on the Ethereum blockchain, offering lending aggregation, yield generation, and insurance. The protocol is maintained by various independent developers and governed by YFI holders. Brief descriptions of Yearn.finance's core products, the governance process, and links to active communication channels will be described as follows.
Yearn.finance is an aggregator service for decentralized finance (DeFi) investors, using automation to allow them to maximize the profits from yield farming.
The goal of Yearn.finance is to simplify the continuously expanding DeFi space for investors who are less technically minded or wish to engage less committedly than serious traders. The service, launched in February 2020 and formerly known as iEarn, has seen significant growth in recent months with the introduction of new products and the developers' release of the in-house token YFI.

Yearn.finance is known as the invention of Andre Cronje. After departing from the iEarn project in February 2020, Cronje returned to showcase a rebirth with new tools emerging and the launch of YFI in July. Since then, YFI's capital has reversed, and the assets under total locked value surpassed $1 billion by the end of September 2020. Cronje has a long career in cryptocurrency and has become synonymous with DeFi. He also holds positions at the smart contract ecosystem Fantom and CryptoBriefing, a resource dedicated to initial coin offerings (ICOs) and crypto media.

The Yearn.finance ecosystem is controlled by YFI token holders who offer off-chain proposals and vote on them. Proposals that gain majority support (over 50% of votes) are executed by nine members with a multi-signature wallet. Changes are effected with the signatures of six out of the nine wallet signatories. Members of the multi-signature wallet are voted on by YFI holders and can be changed in future governance votes.

Yearn.finance users face a high risk of losing money due to rapidly changing market conditions and opportunistic entities trying to profit from less experienced participants. Founder Cronje himself has tried to maintain transparency about the platform's source and has stated that Yearn.finance cannot be guaranteed 100% safe even after code audits, meaning DeFi naturally carries risk.

Yearn.finance works to simplify DeFi investments and activities like yield farming for the broader investor sector. The platform acts as an aggregator for DeFi protocols such as Curve, Compound, and Aave, leveraging various bespoke tools to bring the highest possible yield to those holding cryptocurrency. New features continue to be introduced to help preserve the platform's long-term value among other factors.
As of the end of September 2020, Yearn.finance earns revenue through withdrawal fees currently at 0.5% and a 5% gas subsidy fee. Due to its governance model, these can technically be changed at any time by consensus. The target market for Yearn.finance is known to be investors who do not have the time to delve into the increasingly complex DeFi phenomenon from scratch or who wish to optimize their returns.

The YFI token is used as a tool to facilitate coordination among contributors, the community, and related protocols within Yearn.finance, created to decentralize the management and development of yearn products while providing an environment for rapid-paced innovation.

The responsibilities of YFI token holders and how the token itself has gained dynamics as a token within Yearn.finance are of interest. All functions can be changed by the community at any time, and there are many examples of this. Since the emergence of YFI, there have been extensive discussions about the emissions, supply, and authorities of token holders.

When the YFI token contract was deployed, users of various DeFi protocols could earn it by providing liquidity to specific pools. Liquidity providers to the Curve Finance yPool, YFI/DAI balancer pool, and YFI/yPool LP token balancer pool were rewarded with 30,000 tokens proportionally. The output tokens from investing in these pools were staked through a halted Yearn.finance interface, and stakers were rewarded within YFI until the supply ran out, approximately seven days later.

YFI was designed with a built-in minting function. Initially, this function was controlled solely by Andre Cronje but evolved into a multi-signature (multisig) wallet shortly after token emissions began. Since the purpose behind YFI is to completely decentralize control, no concrete plans were made for emissions after the initial 30,000 YFI were distributed. YIP-1 (Yearn Improvement Proposal) approved the weekly distribution of YFI, but a second decision on its implementation and distribution was required, which has not occurred.

Starting with YIP-36, a portion of staking rewards has been directed to the multisig wallet to finance operational expenses. When the multisig wallet reaches a $500,000 buffer, rewards are distributed to token holders. YIP-56 has completely phased out the staking system and uses a buyback system instead. This approach benefits token holders by removing YFI from the open market while directing more capital into the Yearn.finance treasury. Consequently, the YFI (Governance Vault) governance vault has been retired, allowing holders to participate in governance while holding their YFI elsewhere.

YFI holders have voted to mint 6,666 YFI. One-third of the newly minted YFI has been given to significant contributors, and two-thirds have been sent to the treasury for distribution and control by the governance. After YIP-57 passed, all tokens were minted in a single day.

Governance 2.0, described in YIP-61, has expanded the responsibilities of a YFI token holder from creating and voting on Yearn Improvement Proposals to also creating and voting on Yearn Delegation Proposals and Yearn Signaling Proposals.
Yearn Signaling Proposals (YSPs) allow token holders to formally request a yTeam with authority to execute a decision, enabling token holders to have a say without going through a lengthy YIP process. yTeams have the right to respect or ignore the proposal, and if ignored, it could formally become a YIP issue.
Yearn Delegation Proposals (YDPs) are varying proposals where decision-making authority is delegated in situations that create any distinction. This is related to Governance 2.0 as it introduces targeted yTeams and specific powers that can be modified by token holders.

YIP-61 Governance 2.0 has transitioned Yearn.finance into a structure managed by multiple DAOs (Decentralized Autonomous Organizations) with limited authorization, as of 25 April 2021. This approach allows for protocol development to maintain adequate decentralization without being bogged down by bureaucracy.
Multi-DAO refers to the fluid number of decentralized independent organizations (such as DAOs) uniquely contributing to the protocol. These independent groups consist of YFI holders, yTeams, and Multisigs.

Token holders have a say in the purpose of existence for yTeams and who participates in the Multisig, along with the limitations of operational control for each group. The term 'limited authorization' stems from token holders granting specific powers to various groups forming and managing Yearn. A simplified form of governance is as follows:

It is the duty of YFI token holders to create and vote on proposals that develop the protocol. These proposals are:

Specifically, these proposals allow token holders to make decisions such as:

yTeams can be officially approved or removed to control which yTeams can have delegated powers.

YFI Holders have the authority to propose a YIP on any subject not already delegated.

Each yTeam has objective and separate authorities defined by token holders. They can further be divided into membership pools, which are separate participant groups working towards similar goals as the encompassing team. Additionally, a membership pool can be part of multiple yTeams. These teams aim to provide services such as creating a membership pool, providing protection, and safeguarding vaults.

Decisions given by yTeams will be executed on-chain by Multisig until a more decentralized system is approved for implementation. Factors under Multisig control include:

Yearn.finance is continuously paving the way towards an ideal balance between DAO decentralization and productivity. The current stage of efforts requires mostly changes at the social layer and is moving towards software applications in the future like:

The Yearn.finance in-house token YFI has a fixed supply of 30,000 tokens. When launched in July 2020, it was unprecedented and developers did not receive any initial funds. At launch, the total supply was known to be 0 YFI. Up to this day, most of the limited supply has entered circulation, and the token's success is reflected by reaching its all-time high price of $41,000 in mid-September 2020, becoming known as the first cryptocurrency to become more valuable per unit than Bitcoin (BTC). Yearn.Finance users earn YFI by providing liquidity, while their token holdings determine governance privileges.

For those interested in cryptocurrency investment, how to buy and sell Yearn.finance (YFI) is frequently asked. It can be done through mining or using a specially created cryptocurrency exchange.
In Turkey, buying Yearn.finance (YFI) with Turkish Lira is surprisingly easy and quick. Yearn.finance (YFI) can be purchased without any technical knowledge or official documents.