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YFI cryptocurrency: How it works and where to buy

Learn more about what Yearn.Finance does, why the YFI token is useful and where to buy it.

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YFI is the native token of the Yearn.Finance system.

Yearn.Finance is a DeFi yield farming system, focused on making it easier for users to automatically farm the highest-yields possible with their cryptocurrency.

Disclaimer: This information is not financial advice or an endorsement of cryptocurrency or any specific provider, service or offering. Cryptocurrencies are highly volatile and high risk. Do your own research and seek financial advice before buying. Please check with providers if their services are available in your state.
CryptocurrencyYFI
Total supply30,000
InflationNone
NetworkERC20
PurposeGovernance token

Read the beginner’s guide to DeFi.

How does Yearn.Finance work?

  • Warning: Yearn should be considered experimental, and a work in progress. There is no guarantee that your funds will be safe when using it.

Yearn is a growing collection of DeFi services, intended to act as a simple gateway for the wider DeFi ecosystem.

Its centerpiece is the ability to automatically invest user deposits in the highest-yielding place available in the DeFi ecosystem, through Yearn Vaults.

Users deposit funds into the vault, and those funds are then collectively allocated to the most lucrative yield farming available, and the returns from those are distributed proportionally to users, accumulating to the yTokens users are given when they make deposits.

Yearn can similarly let people make stablecoin deposits straight to the highest-yielding lending platform available, to earn competitive returns on stablecoins.

In addition to the ease of use, this also helps batch transactions to save on Ethereum gas fees.

The service doesn’t come for free though, as performance fees and other costs are extracted along the way. These fees can be paid to YFI token holders as dividends, in an amount the community of token holders agrees on.

What does YFI do?

YFI is purely and simply a governance token. Its holders are allowed to vote on decisions that affect Yearn.

While simple on paper, this can potentially be quite complex and lucrative though, as evidenced by the decision to receive a pay a cut of the service fees to token holders.

And if Yearn becomes a prominent part of the DeFi world over time, other decisions such as support for different assets, and the way returns are paid or reinvested, could have profound impacts on the rest of the market over time.

Yearn encourages YFI token holders to actively participate in governance.

Risks of buying YFI
It’s important to remember that YFI is an experiment and a work in progress. There are no guarantees of a successful outcome, or that the token will remain valuable.

In particular, it’s essential to remember that Yearn is a public, open-source project which anyone can copy at any time. Yearn has many imitators and competitors, and it will continue to have them. Yearn does not have any kind of proprietary technological edge over its competition.

The value of the YFI token is primarily associated with the community that’s grown around Yearn, and is a reflection of people’s confidence in the people who are working on Yearn. This makes it extremely unpredictable and highly speculative.

If you are not completely certain of how YFI works and what its value proposition is, it may be safer not to risk your funds.

How to buy YFI

Here’s a step by step guide to one way of buying YFI. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that’s right for you.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Coinbase Digital Currency Exchange
Bank transfer (ACH), Credit card, Debit card, Bank transfer (SEPA), Wire transfer
USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more

50
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Buy and sell major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.
Gemini Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, CAD, EUR, GBP, SGD, HKD

40
cryptocurrencies

Trade bitcoin, Ethereum and more at a US-based exchange where payments can be made in USD.
Crypto.com App (US)
Credit card, Cryptocurrency, PayPal, TransferWise, SEPA
USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY, ZAR & 9+ more

76
cryptocurrencies

Get 0% fees on credit/debit card purchases for 30 days after signup.
Buy 80+ cryptocurrencies, earn up to 8% on holdings, pay with your crypto for cashback at stores, get loans and more with this complete crypto-finance platform.
FTX.US Cryptocurrency Exchange
Bank transfer (ACH), Cryptocurrency, Wire transfer
USD, AUD, EUR, CAD, GBP, SGD

19
cryptocurrencies

Enjoy the local version of the FTX exchange which offers a range of leading cryptocurrencies, up to 10x leverage, access to global liquidity and benefits for FTT token holders.
Revolut Cryptocurrency App
Revolut Cryptocurrency App
Bank transfer (ACH), Bank transfer (SEPA), SWIFT, Credit or Debit Card
USD, EUR, GBP, CAD, NZD, JPY, HKD, NOK, DKK & 9 more

21
cryptocurrencies

Buy and sell several popular cryptocurrencies through your Revolut account, set up recurring purchases and transfer it to other US users. You can’t transfer cryptocurrency to anyone who does not have an active Revolut account. Service not available in Tennessee.
ZenGo Cryptocurrency App
ZenGo Cryptocurrency App
Bank transfer (ACH)
USD

48
cryptocurrencies

Take advantage of ZenGo's unique self-custody system to buy, sell and spend and earn cryptocurrency in your own wallet.
Huobi Cryptocurrency Exchange
AdvCash, Cryptocurrency, SWIFT, Wire transfer
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

219
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Coinbase Pro
Bank transfer, Cryptocurrency, Debit card, PayPal, Wire transfer
USD, EUR, GBP

58
cryptocurrencies

Formerly known as GDAX, Coinbase Pro is a US-based exchange which offers fiat currency payment options, including wire transfer, ACH bank transfer and SEPA.
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Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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