Question about YFI governance

I am new in Defi and not a specialist in crypto but anxious to learn. I could not find out how the YFI governance token exactly works for new products. Like the new protocol Deriswap, Deriswap is a product of Yearn Finance isn’t it? So the YFI token should benifit from the new protocol Deriswap. How does it work this new protocols and why do they need a new token by themself and how do YFI holders benefit of a new token?

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All that is known at this time about Andre’s new product Deriswap is what has been posted here and on Andre’s blog (as it is his product). Normally, Andre builds products that do benefit yearn in some way, but it is entirely up to him how he wants to release them. With a token that accrues a fee to it, without a token entirely, or give it to the yearn ecosystem. At this time nothing is known about how deriswap will fully work so no one can say for sure. Best thing to do is just wait and see.


I’d add that Andre did say, in an interview with bankless, that this design is for the benefit of yearn.

The way I see it is simple. Yearn vaults need to do swaps, they can use this protocol.

Deriswap needs liquidity for pools, yearn vaults can provide to these pools.

But if any of the revenue of deriswap from swaps and so forth will be directly funneled too $YFI holders, anyone’s guess is as good as mine.


This post might help one understand the relationship between Yearn and YFI


Yearn does not cater to speculators. Pump it, dump it, hedge it, short it, long it, lend it, nobody cares. Yearn is agnostic to price.

… Holding YFI entitles you to signal for real, practical change that improves Yearn…

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I understand the principles but I do not understand how Andre is positioned within Yearn and how he gets paid. It is in the best interest of Yearn to keep Andre in and I hope he earns something from his and teams inventions. But I do not understand why Deriswap can not be a YFI product/protocol. It is in line with YFI or isn’t it? I presume that a percentage of the profits from YFI product flow into YFI teams reserves or something for development and improvement?

Andre works on ideas he has and collaborates with the yearn dev team. He is not paid by us, thus he has no obligation to release his products under the yearn banner.

Yes, it is in line with YFI so to speak, but it is not ours. It may or may not be released as a yearn product depends on what Andre does with it, but regardless yearn will use it in the future as it will benefit our vaults / ecosystem to do so.

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