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10,000 times YFI in 43 days: How much can you earn if you understand it? Is it now overvalued or undervalued?



The short period of more than 3 months from May to September is actually 3 or 4 months to test your grasp of blockchain trends. The bold and cautious new leek who has just entered the circle has gained 5 times and 10 times the growth of assets in the past few months. Some old leeks did not give up studying, paid attention to the news every day, dug out first-hand information, did not rely on the old to sell the old, used an empty cup mentality, and insisted on turning themselves into a new leek, and the harvest was also very good. There are still a lot of old leeks, holding a bunch of so-called "mainstream coins" in their hands, in addition to reading two so-called "analyst big V" articles that analyze the K-line trend of Bitcoin and Ethereum every day, sour complaints + jealousy. Apart from the income from "air coins" and "mining" in Leek's hands, there is almost no change in your own assets... If you don't believe me, how much you can understand from a picture in today's WeChat group will prove that you are the one above A class of people. There is also a simpler way to know how much you have earned in the past few months-that is, can you explain the logic behind YFI's rise from $3 to $30,000? How is YFI valued, is it overvalued or undervalued now? To be clear, most of the income will be very good in the past few months. These people usually know clearly that 1YFI=1BTC is not a dream when YFI is 800-3000 US dollars. For those who know little about YFI, their impression of YFI is basically fair, no team allocation, no pre-mining, no investment institutions, smart pool... The income should be OK, but it is definitely not as good as the one above. XLM broke through the US$0.43 mark, with an intraday increase of 9.53%: Ouyi OKEx data shows that XLM rose in the short term, broke through the US$0.43 mark, and is now at US$0.43027, with an intraday increase of 9.53%. The market fluctuates greatly, please do a good job in risk control. [2021/6/1 23:02:49] I don’t know anything about YFI, or even heard of it, I’m afraid you should be the kind of "old leek" that has made little profit in the past few months. Let’s do a small test to see which level you belong to: 1. Only use the CEX of the three major exchanges, mainly playing BTC, BCH, and EOS; 2. Know how to use Metamask, and have traded on Uniswap, but the frequency of use is far less than that of CEX ;3. Often trade on Uniswap or Balancer, and have provided liquidity to some trading pairs, used compound or AAVE, know what LP (liquidity provider) token is; 4. Can use it proficiently Lending platforms such as MakerDAO, Compound, AAVE, and Curve are regular customers of major liquidity farms, with a pile of fruits and vegetables in their hands, and they are happy farmers. These four levels basically correspond to the above three types of people in reverse. This article is the first one, and it is mainly used to clarify a basic concept triggered by YFI, that is, the fair token distribution method without pre-mining, which is also the most popular way of liquidity mining at present. Many mining projects They all imitated YFI. But because YFI’s four pool settings are extremely complicated, let’s simplify it. Let’s use YAM, the imitation disk of YFI+AMPL, which became popular later on, as an example. After understanding YAM’s pool settings, you will also understand the meaning of liquidity mining. Foundation and core. Data: The income of Ethereum miners in July was 143.8 million US dollars, a record high in the past two years: The Block Research data shows that the income of Ethereum miners in July was 143.8 million US dollars, a record high in 23 months, and transaction fees accounted for the largest share of Ethereum in the month. Nearly 23% of miners' income. In May, transaction fees accounted for only 10% of Ethereum miner revenue. Additionally, Bitcoin miners earned a total of $299 million in July, almost double that of Ethereum miners. [2020/8/12] It is assumed here that you know the basic concepts of Uniswap, AMM (automatic market maker), and AMM impermanence loss. If these concepts are unfamiliar, it is recommended to do a little homework first, and then look at Below, it will be more clear. The purpose of pool 1 is to give tokens to players when they deposit without loss of principal. This is actually a bit similar to the ILO (lock-up or mining) of the earliest projects such as Edgeware, that is, users only pay the price of liquidity to obtain tokens, but ILO is regular, and usually only ETH, such as YAM , is more like a demand deposit, which can be flexibly deposited and withdrawn at any time. During the token distribution cycle, the larger the amount deposited and the longer the deposit, the more tokens will naturally be obtained. And like YAM and later various fruits and vegetables, a pool usually contains 7 or 8 different small pools, usually there must be a small pool to store ETH, and most of the others are stored in Lend, COMP, link, SNX and other mainstream DeFi-related currencies with fundamental support, and now YFI itself is usually recognized as a value asset, and is used as an option by many subsequent liquidity mining projects. Quotes | VDS rose rapidly and rose by more than 43% within a day: According to the BBKX.COM market, VDS continued to rise today. As of 21:00 (UTC+8), it rose 43.94% within a day, and the current price is 1.2568 US dollars. Affected by market sentiment, the market fluctuates greatly, please pay attention to risk control. [2020/2/19] The biggest feature of a pool is: safety, how much assets the user deposits in for mining, and when they don’t want to mine and withdraw coins to leave, the assets that get out after removing the GAS fee must still be these assets, plus the mined new coins . It is also for this reason that the popular liquidity mining project has a great impetus for a pool of supporting assets. When the YAM pool was just opened, the prices of several supported currencies soared directly, because everyone went to Buy these coins and come to YAM’s pool of mining. Of course, there is no way for Pool 1 to control the price fluctuations of these tokens themselves. The security mentioned here is only relative to the currency standard. The first pool of YFI is relatively complicated, but it is safer, because the fluctuation of the currency price itself can be almost ruled out. The first pool of YFI uses stable coins. After going to Curve to provide proof of liquidity, it can be said that it is a more secure and safe way to mine YFI. It is a safe method, but the threshold is also high, and players who do not know how to use Curve and do not understand LP Token are directly excluded. Therefore, the later liquidity mining basically imitated the one pool of YAM. As for why it is "relatively fair" it is because: News|Cryptocurrency exchange Blade receives $4.3 million in strategic investment: The cryptocurrency derivatives exchange Blade, which plans to launch in three weeks, has received investment from cryptocurrency platform Coinbase and investment firm SV Angel raised $4.3 million from lead investors. Blade's funding and plans come from an Aug. 12 Tech Crunch report. Specifically, the report states that Blade aims to offer trading in cryptocurrency-based perpetual swap contracts, with three new improvements. (cointelegraph) [2019/8/13] 1. This is indeed fair. You can get as much "mine" with one ETH as anyone with one ETH, and everyone is equal. 2. But it is basically a game between giant whales and big players. The tokens you mine are related to the ratio of your deposited assets to the total assets. For example, in the pool of ETH, the annualized rate is very high at the beginning, 1000% or something, you have deposited 10 ETH in it and you are happy within 5 minutes, a large household deposited 1,000 ETH into the pool, and the annualized rate fell to 200 in an instant %. Well, that's it, people's assets are 100 times yours, and the things dug out are naturally 100 times yours. There are already some new mining projects trying to improve on this point. For example, in a new project that appeared recently, the first batch of mining is limited to 3,000, and a wallet is only limited to 1,000 dollars. At the same time, there is a review of the wallet address applying for mining. It must be an ETH address that has previously participated in liquidity mining, or interacted with loans, insurance and other contracts, that is, the address that has been deeply involved in Defi before, and is eligible to participate. mining. This not only ensures that almost everyone can mine in the same proportion at the beginning, but also effectively eliminates the idea of large investors spreading their funds to multiple new addresses for mining together. Quotes | BTC broke through $4,300: According to data from the bitfinex platform, BTC rose above $4,300 in a short period of time, with a 24-hour increase of 2.68%. The current price is $4,312. The current volatility is relatively large, please do a good job in risk control. [2018/12/24] I asked a lot of new farmers who play fruit and vegetable mining, and asked: "What can you do with this currency?" Who is picking up these coins that you don’t know what to do in the super market?” Answer: “Ah... there are always speculators who want to buy it, you see that the price of this kind of mining coin usually starts to rise.” Question: "Who was providing the liquidity of these coins in the early days, and why did they provide liquidity?" Answer: "Ah... just earn the handling fee, isn't there a handling fee for providing liquidity?" Me: "For the sake of that small fee, take the risk of such a large free loss, and use ETH to sell "air coins" for your liquidity. Do you think that liquidity providers are philanthropists..." Liquidity mining like YAM, usually Pool 1 will be opened first, and pool 2 will start after pool 1 has been running for 1 or 2 days. 2 What are the characteristics of the pool? High risk, high reward. Pool 2 is different from pool 1. If you want to dig in pool 2, what you need to deposit in is not ETH, LEND and other assets, but your LP Token, which is the market-making liquidity proof Token, before you can mine. Taking YAM as an example, many players will go to Uniswap after digging a lot of YAM in one pool, and deposit it into Uniswap's ETH-YAM liquidity pool according to the value of ETH:YAM=1:1, to provide liquidity to other traders. At this time, Uniswap will issue an LP Token to players who provide liquidity, so that you can withdraw your ETH and YAM in the future. This LP TOKEN is proof that you provide liquidity, and it also includes the proportion of liquidity you provide in the entire liquidity pool supply. This LP Token can be deposited into YAM’s pool 2 for mining. YAM will reward you with more YAM at a speed far exceeding that of pool 1. small. If you make a liquidity contribution, I will give you a big reward. But again, the other side of high returns is high risk. The ETH you rushed into the liquidity pool: YAM, the value is 1:1. When the price of YAM rises, people outside will exchange ETH for your YAM. When you withdraw the liquidity, you will have more ETH and less YAM Yes, it is equivalent to the system helping you to sell while increasing. There is definitely no loss in fiat currency, but compared to if you only store YAM and do not sell it, you will earn less. This is the "impermanent loss" you often see in AMM. When the price of YAM drops, more people will come to exchange YAM for ETH. When you withdraw liquidity, YAM will increase and ETH will decrease. It is equivalent to the system automatically helping you to keep buying bottoms. If you are optimistic about the project , In fact, there is nothing wrong with it. However, there are frequent accidents. There should not be too many reset coins in the currency circle. YAM was directly "returned to zero" on the same day because of one line of code. All players who mined YAM in pool 2 suffered heavy losses, because the ETH and YAM they provided were basically all It was exchanged for one-handed YAM, and ETH was replaced by those who panic-sold YAM. However, generally speaking, except for code-level black swan events such as YAM, under the incentives of Pool 2, many players who have dug crops in Pool 1 will choose to go to Pool 2 to get the newly mined coins + ETH to provide liquidity Continuing to accelerate mining is equivalent to locking positions in disguise, so it can be seen that in the first few days before the start of a mining project, the price usually "doesn't move", which is the credit of the 2 pools. Selling pressure, on the one hand, provides a large amount of liquidity, and the whole situation is "thriving". Of course, after a period of time, it will depend more on the fundamentals of the project to support the price. We usually use YFI as a model of fair distribution, no pre-mining, and no VC to praise him, often saying that this will kill VC. So if you really want ge VC's life, project parties, especially DeFi-related projects, now have an additional way for the community to start cold, that is, the liquidity mining model. The method can be copied from YAM: 1. Open a 1 pool, mortgage ETH, LEND, SNX and other good assets, and slowly mine project tokens. 2. A little later than pool 1, open pool 2, go to Uniswap, do liquidity mining of ETH and project tokens, quickly mine project tokens, the risks and returns are higher than pool 1. 3. A little later, you can open a three-pool, that is, the project party’s own development funds, similar to Gongmu, release tokens to the project party at a speed, and the speed can be linked to certain parameters of the 1 and 2 pools. Because of the existence of the 2 pool, the project party can sell tokens in exchange for development funds. Or even simpler, directly distribute 10% or a specific proportion of the 1,2 pools to the project party as start-up funds. After all, development always needs money. You see, under this model, there are no seed rounds, angel rounds, cornerstone rounds, private rounds, public rounds, 1EO and other fundraising methods, and there will be no angel rounds last week. Doubled one week and turned into a private wooden wheel, and doubled again next week to let the public wood take over the "strange appearance" of the currency circle. Of course, this does not apply to all projects. Many high-quality, technically difficult projects still require initial investment in the seed round, a few months or even 1 or 2 years of development, and an MVP before further fundraising. . It's just that IYO has added a new way of thinking to fundraising, and it is also a more fair and "blockchain" fundraising method than the existing fundraising methods. In the next article, we will introduce YFI’s machine gun pool, insurance, liquidation, VC, YETH and other businesses just launched, and let you see why this thing is already 30,000 US dollars a piece, but many industry leaders are still shouting The value of YFI is underestimated.


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