Yearn Finance improves the YFI token economic model and introduces a voting lock mechanism

ChainCatcher news, according to The Defiant, Yearn Finance has undergone a comprehensive overhaul of its token economic model and introduced a voting lock mechanism.

Stakers can choose to lock their YFI tokens for a period of one week to four years to convert them into non-transferable ve YFI tokens. Users can stake vault tokens to earn YFI rewards, which are distributed in the form of d YFI and can be used to redeem YFI tokens at a discounted rate.

Holders who commit to staking their YFI for a longer duration will enjoy enhanced rewards. While users can flexibly exit their positions before the end of the lock-up period, they will face a reward penalty of up to 75%. veYFi is now the exclusive voting token for Yearn governance.