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Golden Observation | Why is YFI so valuable? From the income of Yearn platform



1 YFI=1 BTC, this is the slogan of the YFI community.

Before August 20, many people were skeptical and even mocking of it. But the price of YFI really succeeded in surpassing Bitcoin on August 20, and it continued to rise and remained at a high level. The current price of YFI has exceeded 15,000 US dollars (Note: When this article was published, because AAVE added YFI as collateral, YFI skyrocketed to 17,700 again Dollar). The three major exchanges Huobi, OKEx, and Binance all took the initiative to list YFI.

In fact, many people do not understand why YFI is so valuable? We can analyze it from the income perspective of the yearn platform.

Golden Evening News | List of important events on the evening of December 19: 12:00-21:00 Keywords: Vietnam, Fan Yifei, Grayscale, Web3.0 Ecological Conference

1. The total asset management scale of Grayscale increased by US$2.5 billion in three days;

2. The Prime Minister of Vietnam listed cryptocurrency and blockchain as one of the country's top five priority technologies;

3. Fan Yifei: Steadily promote the development of legal digital currency standards in an open and inclusive manner;

4. Zhu Wei, founder of Inbit: three major trends in the cryptocurrency mining industry in the next five years;

5. Caixin report: At present, the stable currency USDT is widely used in illegal activities such as money laundering and gambling;

6. Lin Zihao, CEO of Candaq: Behind every blockchain "speculative bubble" is a technological breakthrough;

7. The US FBI warned that ransomware gangs harassed victims by phone and demanded bitcoin ransom;

8. General Counsel of Compound: FinCEN’s new regulations on encrypted transactions will not bring any benefits to government law enforcement agencies. [2020/12/19 15:48:39]

The entire yearn ecosystem can be said to be a revenue-generating and profit-generating machine.

Golden Evening News | List of important news on the evening of March 23: 12:00-22:00 Keywords: Federal Reserve, Alipay, S&P 500, BSV

1. The Federal Reserve: Will buy unlimited U.S. bonds and agency mortgage-backed securities (MBS) on demand.

2. The S&P 500 erases all gains since Trump took office.

3. Data: BSV’s anonymous computing power once accounted for more than 50%, raising security concerns.

4. released a blockchain application building tutorial.

5. The latest case of Telegram's "brick-moving arbitrage" fraud. A single user was defrauded of 370 ETH.

6. Media: Alipay has participated in the four major functions of the central bank's digital currency.

7. Shandong: Improve the supporting capabilities of blockchain and other application scenarios, and make every effort to build "China's Computing Valley".

8. Hebei issued the key points of cracking down on pyramid schemes, focusing on cracking down on "virtual currency" and other pyramid schemes.

9. Bitcoin fluctuated within the day, the highest rose to 6,600 US dollars, the lowest fell to 5,686 US dollars, and it is currently reported at 6,286 US dollars. [2020/3/23]

Yearn income sources include: interest, Compound’s COMP,’s CRV, pool transaction fees, transaction fees, transaction fees, leverage fees and liquidation Fees (still on testnet), liquidation fees (still on testnet), systems (unallocated interest or fees), and the just-announced decentralized insurance service yinsure revenue.

Analysis | Golden disk: BTC futures contract positions change: Golden disk comprehensive analysis: OKEX’s BTC futures contract positions reached BTC100908. Long accounts accounted for 62%, and short accounts accounted for 37%; the average long position ratio of the main force was 23.3%, and the average short position proportion of the main force was 21.8%. As of press time, the OKEX spot price is 6332, and the BTC0817 price of the futures contract for the week is 6289, a discount of 43 points. [2018/8/15]

Currently there are two main products: Earn - deposit funds, automatically earn the best interest rate; Vaults (machine gun pool) - deposit funds, automatically use the optimal strategy to obtain high risk and return

Yearn charges smart pool investors 0.5% of the principal and 5% of the income, which comes from the sale of farming assets. Take the yCRV smart pool as an example: the yCRV stored in the Vault is deployed using the CurveYCRV strategy, which will mine CRV and sell it to buy more yCRV. 5% of the income will be collected every time it is withdrawn, and the income will be controlled by yearn governance.

You must be wondering where the machine gun money is going. The figure below shows the scale, strategy and investment amount of several smart pools in yearn.

The annualized income of Smart Pool is very high, for example, the annualized income of yCRV is as high as 111%. Investors invest up to 120 million US dollars, and at the same time bring rich returns to yearn and investors.

Moreover, the smart pool strategy is completely open, and anyone can view the operation of the smart pool on the chain. When smart pool investors liquidate their investment funds, yearn will get management fees and revenue sharing, and strategy developers will also get part of the sharing.

YFI is the governance token of yearn, so how does yearn's income benefit YFI holders?

Remember, YFI has no pre-mining and no team share, but yearn founded by Andre himself. There are only 30,000 YFIs, no more.

How to develop and better UI for YFI? The YFI community voted in favor of the YIP-36 proposal, which determines that yearn will use system revenue as operating funds. In particular, 100% of the income earned by the system is sent directly to the Multisig treasury. Among them, $500,000 is used to fund Andre's development, UI upgrades, security audits, etc., and all other rewards will be directed and distributed to YFI staked in the governance pool.

Treasury address: 0xfeb4acf3df3cdea7399794d0869ef76a6efaff52. Current income is $493,000.

After the treasury reaches the $500,000 threshold, system revenue is sent directly to the governance contract. Governance contract address: 0xBa37B002AbaFDd8E89a1995dA52740bbC013D992

The current method of claiming dividends is as follows: 1. Mortgage YFI governance through YGOV; 2. Vote in YIP (lock YFI for 3 days); 3. Unstake and claim reward yCRV.


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Golden Observation | Why is YFI so valuable? From the income of Yearn platform

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