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10,000 times YFI in 43 days: its core business tells you how to play in the second half of DeFi?



The previous article introduced YFI's pioneering "multi-pool" liquidity mining, completed the distribution of tokens, and the attributes of price discovery. This attribute directly triggered the imitation and pursuit of this method by many subsequent projects. For example, YAM in the YFI+AMPL model, Sushiswap in the YFI+Uniswap model, Swerve in the YFI+Curve model... It can be foreseen that there will be more well-known projects that will be forked and distributed in the form of YFI. A "more fair and decentralized" community version... However, this is only half of YFI, and the other half of YFI, its core business, is what supports its token price from 30,000 times to 30,000 US dollars The core pillar, understanding these businesses, you can know how DeFi should play when it gets this "second half". The English literal translation should be called the vault, but everyone in China likes to call it the machine gun pool. The machine gun pool is actually very vivid. Users put ammunition into it, and the machine gun will automatically find you the "target" with the highest profit to go to, and resolutely implement the digging, raising and selling strategy without mercy. For example, if you go to now, there are more than a dozen smart gun pools below. (The sticker only contains part of the picture) ARK Fund bought nearly 430,000 shares of Coinbase last week: Jinse Finance reported that ARK Fund’s holdings data showed that from March 28 to March 31, ARK Fund bought a total of 430,656 shares of Coinbase ( Coin). [2022/4/3 14:01:52] Each pool tells you the currency to be stored, the current average annualized income, etc. For example, the first pool is to directly deposit ETH, and the fourth pool, then It is to provide LP proof Token to Curve for liquidity... So how does the Smart Pool make money? To put it simply, smart pools will have different strategy styles (some smart pools are mixed strategies), some provide liquidity to Uniswap, Balancer, and Curve, get commission sharing, or token rewards like CRV, and some participate in liquidity Sexual mining, such as when YFII first forked, deployed YFII's 1-pool strategy, and the funds went to YFII to mine YFII, and then mined and sold. Here, take the YETH machine gun pool that caused a sensation not long ago as an example, and you may understand. YETH is very simple, users just need to deposit ETH in, and can obtain an average annualized return of 27.2%, which is much more attractive than the wealth management products provided by deposit banks and many CEXs in the currency circle. So after your ETH goes in, what did YFI do with these ETHs to earn this 27.2% return? The whole process is as follows: 1. YFI deposits these ETHs into Maker to obtain the stable currency Dai; 2. Put these DAIs into the yDAI pool ( DAI smart pool); BTC returns to the $43,000 mark: Huobi Global The website data shows that BTC has risen in the short term, breaking through the $43,000 mark, and is now reported at $43,003.41, with an intraday drop of 1.93%. The market fluctuates greatly, so please do a good job in risk control. [2021/9/21 23:40:14] 3. The strategy of the YDAI pool is to provide these DAIs to (a liquidity pool of Curve), obtain Curve’s liquidity proof LP Token, and then obtain CRV Token. So the most simple and intuitive understanding, you can understand YFI’s machine gun pool as a wealth management fund on the blockchain, you just throw the “money” (token) specified by the pool into it, and then he will automatically find it for you The place with the highest yield will give you money. Subsequent forks of YFII, YFV, YFlink and other "uncle" series are basically imitating YFI's machine gun pool strategy, but after the fork, each company has different pools and different strategies, just like Different banks have the same wealth management or fund products of different banks. You may ask the following three questions: 1. Why do I need to use YFI’s Smart Pool? Can’t I do these operations myself? sure! For advanced players, he can do all the things that YFI Smart Pool does manually. But if you do it yourself, there are a few problems. One is that the threshold is too high, and the vast majority of players cannot complete the operation, and the machine gun pool perfectly solves the threshold problem; the other is to operate by yourself, and the gas cost of calling these contracts is often extremely high-every step in the YETH strategy involves 1 - 2 contract calls, each cost ranging from a dozen to tens of dollars, and hundreds of dollars is also normal when ETH is blocked. The concentrated operation of large funds in the machine gun pool is equivalent to sharing the gas costs for everyone, which can save a lot; XMR broke through the $450 mark with an intraday increase of 8.43%: Ouyi OKEx data shows that XMR rose short-term, broke through the $450 mark, and now It was quoted at US$450.34, an increase of 8.43% within a day, and the market fluctuates greatly. Please do a good job in risk control. [2021/5/7 21:32:44] The third is security issues. Many new liquidity mining, whether malicious or not, is a risk to your deposit if the code has problems. The strategies deployed by the machine gun pool are usually The code has been audited, and the policy pool is opened only when the principal is guaranteed to be worry-free, and the security has been greatly improved. 2. Now all major trading platforms and wallets have also launched DeFi liquidity mining products, and the annual rate is not low. Why use YFI? That's right, now many CEX and wallet software have launched their own "smart pool" after seeing YFI and the subsequent uncle series. The operation is even easier than YFI and other smart pools, and users often deposit USDT directly in it. That's it. But there are advantages and disadvantages. YFI's machine gun pool, all operations and whereabouts of funds are visible on the chain and completely transparent. It is impossible for CEX to do this, and besides, CEX’s annual income will definitely be drawn. As for how much, you certainly have no way of knowing. Decentralized smart pools such as YFI have completely transparent rules. 3. The machine gun pool is so powerful, what does it have to do with YFI tokens? Isn’t this a governance token? That being said, however, the YFI smart pool is profitable, and the fee charged to investors is 0.5% of the principal and 5% of the income. Income is sent directly to the multisig treasury. The portion above $500,000 is directed and allocated in the form of rewards to YFI staked in the governance pool. The price of YFI tokens is directly linked to the income of the smart pool, and the income of the smart pool is directly related to TLV (Total Locker Valuo—total lock volume). According to today's data, among all DeFi projects, YFI's TLV ranks first The 480 million assets are second only to Aave, Maker and Curve, and have already surpassed the old DeFi projects such as Compound and SNX. This week, 6.7231 million DOTs will be unlocked. A total of 5.4349 million DOTs were pledged last week: According to Subscan data, the total number of DOTs released by Polkadot this week (March 1-March 7) is 6.7231 million DOTs. On March 4, a total of 2,196,400 DOTs were unstaked. Last week (2.22-2.28) a total of 5.4349 million DOTs were pledged last week, and the current DOT mortgage rate of the Polkadot network is 64.9%. [2021/3/1 18:03:01] Once you understand YFI’s machine gun pool, you will understand most of YFI. However, YFI’s business expansion speed is beyond imagination, which is why YFI’s price and TLV far exceed those of each fork Uncle series, after all, there is only one Andre Cronje, this person, there is no way to be forked... Let me introduce other businesses of YFI. Earn is like a "lending fund". Users deposit various stable coins or wbtc here, and the smart contract will search-ethexc and research the best protocol to search-ethexc for the highest rate of return in DeFi protocols such as Aave, Compound, and dYdX, and lend to the protocol. Zaps are streamlined protocols for converting between different DeFi assets. It can be simply understood as a YFI-like Uniswap, except that the trading pairs only have those assets in YFI, and ZAP is for those assets swaps (BUSD, DAI,, etc). This may be a key project in the next stage of YFI. It has been tested some time ago and has been officially launched in the past few days. VChess has a daily increase of 30.43%: According to the Vtoken exchange market, as of 17:20 on March 16, the daily increase of VChess has reached 30.43%. [2020/3/16] Among the popular DeFi projects some time ago, NXM must be one of them. As for finance, everyone knows that besides lending and derivatives, the biggest business should be insurance. As the finance on the blockchain——DeFi, after transactions and lending gradually took shape, people's eyes finally turned to insurance. Because it was too early, NXM insurance was almost the only seedling, causing the price of tokens to skyrocket after everyone realized the importance of insurance. However, NXM has a little "no blockchain" in that it has KYC It is extremely strict, and the token NXM is only circulated internally. At present, WNXM on all trading platforms is just a mapping token of NXM. Ever since, the KYC-free version of Yinsurance came, including three core components——Insurer Vaults, Insured Vaults, and Claim Governance. The first batch of supported projects are Aave, Balancer, Compound, Curve, Synthetix, and YFI. I won’t go into too much detail about the relationship between specific insurance rules here. Interested friends can search-ethexc for it by themselves. Here is one of the most amazing things about Yinsure, that is—the insurance policy is tokenized in the form of NFT! This also means that after you have insurance, you can transfer, sell, your NFT policy, and you can buy it back later, or even buy a "basket of policies". RARI, as a platform for carrying NFT tokens with insurance functions, has seen its direct currency price skyrocket these days. Some people also said that this will form a direct competition with NXM? In fact, the launch of Yinsure just complements NXM. In the future, it is very likely to become a relationship between you and me, and me in you. In the traditional financial circle, there is a word called "mutual insurance", maybe we will see it on the blockchain soon. Yborrow is a credit entrustment service, built on Aave, liquidity providers can create a vault and allocate credit, and borrowers can give their own credit limit. Credit Delegation (Credit Delegation) supports cross-smart contracts, users can borrow their favorite assets, and then "delegate" to yVault for farm yield. Yliquidate is a liquidation tool for YFI products. You can use flash loans to automatically liquidate. However, this rather advanced tool is not a product for users. If you have no liquidation experience, you should not use it. VC - this one doesn't exist. But many people speculate that in the near future, if YFI releases a yVCVault to fund some of the best or most promising projects in the DeFi field, they will not be surprised. After all, YFI is essentially a DAO. As long as someone proposes it, everyone votes for it, and the development can be done, this thing will exist. So don't be surprised if you see yVCVault one day, or something more wildly creative. The first half of DeFi actually started last year, but it just kicked off this year and ushered in a climax. This first half was dominated by trading and borrowing. Uniswap and AAVE were undoubtedly the two most dazzling pearls in the first half. As for YFI, it can be said that it has pushed DeFi to the second half by itself. In the second half, liquidity, governance, aggregation, and gamification will be several keywords that appear frequently. 1. The current explosive liquidity mining; 2. Many imitations of the YFI governance and machine gun pool fund aggregation model-now there are aggregation projects about governance tokens, which is very interesting. In order to avoid the suspicion of advertising, we will not Let me talk about the name; 3. Some of the new batch of DeFi projects have begun to make the process of token distribution into a process similar to game tasks. Even the founder of YFI, Andre Cronje, has proposed the concept of Gamefi on Twitter in the past two days, saying that the future of DeFi Monetary policy may become more gamified, and users' funds will become equipment used in DeFi games. At the same time, the industry is still "TraDeFi around transactions" so far, and it may enter Gamefi, which is biased towards gamification in the future. It can only be said that in the second half of DeFi, the requirements for investors are getting higher and higher, whether it is time or knowledge reserve. In the first half of the public chain, you probably knew the basic concepts of PoW, DPoS, and TPS. Now in the second half of the public chain, you have to understand channels, side chains, Rollup, parachains, sharding, cross-chains, and various emerging New consensus mechanism... Similarly, in the first half of DeFi, you know DEX, decentralized transactions, and borrowing are almost the same. In the second half, you have to understand liquidity, AMM formula, derivatives design, stable currency design, liquidation, aggregation... Combined with the knowledge of the second half of the public chain, because many new DeFi products will soon be on Layer 2 of ETH, or It means that Polkadot and Solana are launched on new public chains... In short, the current blockchain DeFi world requires you to understand both blockchain and finance. This may be the fastest and fastest place for cognitive realization. What do you say I don't know enough about these two? Without him, learn more, for example, read more vernacular.


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