The factor: Key use cases to explain YFI's high value

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"YFI's value lies in its design as a governance token, allowing the community to vote and decide on the direction of the Yearn Finance project," Jason Lau, the chief operating officer of the OKCoin crypto exchange, told Cointelegraph.

"As activity within the project and vaults grow, YFI holders can change strategies, launch new vaults, and potentially even redirect treasury or fees to themselves at a later date."

"While YFI currently does not offer any returns, there are proposals in the works that could see YFI holders that stake their YFI for governance, [they] would get a portion of the performance fees - and potentially even redirect treasury or fees to themselves at a later date," Lau added, pointing to a relevant blog post.

Although crypto exchanges see value in YFI, their appraisals of the token may be biased because of the profits they gather by hosting trading for a popular asset.

YFI is the token associated with the DeFi yield aggregation platform Yearn.

Between late July and the first half of September 2020, YFI ballooned from $850 to $43,000, according to CoinMarketCap, tapping a $1-billion market cap at one point in its price journey.

Finance, said YFI holds no real value, according to his comments in July.

Exchanges seeing value in YFI. When asked about YFI's value, Binance listed a pair of use cases for the token.

Based on the mentioned roles of the token, YFI has worth because "The governance aspect tentatively enables high-value protocol users to align incentives," the Binance representative said, noting a link to stablecoins and their importance in DeFi.

"Instead of explaining the speculation with a bullish sentiment on DeFi, it is also possible to drill down and focus on the aspect of liquidity mining. YFI was distributed to liquidity providers who deposited in smart contracts. Since high TVL typically attracts more liquidity miners, there is some sort of feedback loop between TVL and the price of staked YFI tokens."