for mfa. and yes, that's how i see it and use it

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...and passkeys

"YubiKey is designed to meet you where you are on your authentication journey by supporting a broad range of authentication protocols, including FIDO U2F, WebAuthn/FIDO2 (passkeys), OTP/TOTP, OpenPGP and Smart Card/PIV."

*typo: ignore the first line*

So just the authenticator for 2FA or does it actually store passwords as well?

it is a mfa hardware authenticator key. it does not store passwords, except for when using the yubikey in secure static password mode where it is recommended the user store only half of a password i.e. the user types the first half, then uses the yubikey to complete the other half.

check out the website for more info 🤙🏻

https://www.yubico.com/products/how-the-yubikey-works/