Skyrocketing, forking, and being blocked, are YFIIs the Bitcoin of the DeFi world, or are they high-threshold funds?
Editor's Note: This article comes fromDeepChain (ID: deepchain-eva)Editor's Note: This article comes from
DeepChain (ID: deepchain-eva)
DeepChain (ID: deepchain-eva)
, Author: YFBoys, reproduced by Odaily with authorization.
When Bitcoin skyrocketed by more than 10 points, most people were immersed in the joy that the bull market had come, while others were surrounded by greater joy, and perhaps murmured: Harm! Where is the increase of Bitcoin, YFI is the real Bitcoin.
It's DeFi, it's liquidity mining, and it's an agreement. Most people may be confused. To put it simply, you can understand it this way, yearn is an aggregate financial management platform, you put money in it, and it helps you earn higher returns.
What is YFI?
YFI is the governance token of the DeFi platform yearn. yearn is an aggregation platform that supports multiple DeFi protocols. It can automatically move positions between various DeFi protocols that provide liquidity mining, helping users obtain higher returns.
It's DeFi, it's liquidity mining, and it's an agreement. Most people may be confused. To put it simply, you can understand it this way, yearn is an aggregate financial management platform, you put money in it, and it helps you earn higher returns.
In addition, "financial management" (liquidity mining) on yearn, you can not only get income, but also YFI.
(Note: For the convenience of expression, YFI in the following refers to the project and also refers to the token.)
To be honest, from the perspective of product design, YFI can be regarded as an ingenious product in DeFi.
(Note: For the convenience of expression, YFI in the following refers to the project and also refers to the token.)
What excites and inspires players is that among the many projects that advertise "decentralization", YFI is the one with the most Bitcoin temperament and blockchain spirit.
First of all, Andre, the founder of the project, built the project almost by himself; second, after building the project, Andre chose to retreat bravely and hand over the project to the community for governance; third, the total amount of YFI tokens in the project is limited to 30,000 , no team shares, no pre-mining, no public offering, and even the founders themselves have no token rewards.
"Just ask, in the cryptocurrency field where speculators are everywhere, is there anyone clearer than YFI?"
Therefore, some people even call YFI "Bitcoin in the DeFi world".
Whether YFI can afford the title of "Bitcoin in the DeFi world" is not important. "With the support of these selling points, the currency price took off.
Therefore, some people even call YFI "Bitcoin in the DeFi world".
With the spread of players and the media, and the stimulation of rising currency prices, more and more people began to pay attention to and participate in YFI.
It is understood that when Balancer opened for trading, YFI was only about $3, and the price exceeded $4,500 in less than a week, including today's highest price of $4,915 (CoinGecko data), an increase of more than 1,600 times.
F2Pool founder Shenyu revealed on Weibo that he is mining at YFI
The entry of large investors and the influx of retail investors have expanded YFI's capital pool to about 140 million US dollars, and the number of currency-holding addresses has risen from scratch to more than 4,000.
In response, various exchanges launched YFI and its contracts one after another.
The YFI heat wave surged, "1 YFI 1 BTC" has become a mantra on the lips of YFI holders.
Since the total amount of YFI is fixed at 30,000, it is simply not enough for players who are keen on mining. In addition, if there is no mining, a large amount of funds will be withdrawn from the pool, which may have an adverse impact on YFI.
Where there are people, there are controversies and differences. Before it grew into Bitcoin, YFI faced the "catastrophe" of Bitcoin - a fork.
However, compared to the nine years since the birth of Bitcoin, the fork of YFI did come a bit by surprise.
Since the total amount of YFI is fixed at 30,000, it is simply not enough for players who are keen on mining. In addition, if there is no mining, a large amount of funds will be withdrawn from the pool, which may have an adverse impact on YFI.
At this time, some community members proposed an additional issuance plan to change the total number of 30,000 coins to 60,000. At the same time, it will be halved every week following the Bitcoin halving mechanism. This proposal is called Proposition 8.
In the words of the YFII community: In order to ensure that Andre's genius concept and system are not controlled by the previous giant whale account, we forked the YFI project, code-named YFII.
This actually reflects the role of YFI as a governance token: it can be pledged to vote to determine the development direction of the project.
So some members of the YFI community decided to fork the project.
In the words of the YFII community: In order to ensure that Andre's genius concept and system are not controlled by the previous giant whale account, we forked the YFI project, code-named YFII.
Propaganda documents made by the YFII community
In addition, as stated in Proposal No. 8, YFII adopts a halving and additional issuance mechanism similar to Bitcoin, with a total of 60,000 coins, 20,000 coins in each of the three fund pools, and each pool initially has 10,000 coins (later changed to 40,000 pieces, only two fund pools are open), the output is halved every 7 days, and the corresponding proportion of YFII is distributed according to the liquidity provided by users for each pool.
The early miners obtained a lot of cheap chips through mining. If additional issuance means that the value of the tokens in their hands will shrink, they will naturally not agree. The miners who entered the market later were not satisfied with the number of tokens they dug, or they were unwilling to let the giant whale control the direction of the project, so they wanted to issue additional tokens to gain more bargaining chips and voice.
In short, regardless of the original intention, with the support of some people, at 0:00 on July 27, Beijing time, YFII successfully forked and came out.
Like YFI, YFII has no pre-mining, no crowdfunding, and no founder rewards. It can only be obtained by providing stable currency liquidity for YFII to mine.
A promotional poster made by the YFII community
In addition, as stated in Proposal No. 8, YFII adopts a halving and additional issuance mechanism similar to Bitcoin, with a total of 60,000 coins, 20,000 coins in each of the three fund pools, and each pool initially has 10,000 coins (later changed to 40,000 pieces, only two fund pools are open), the output is halved every 7 days, and the corresponding proportion of YFII is distributed according to the liquidity provided by users for each pool.
What's more radical is that, compared to YFI, which only uses multi-signatures to restrict developer permissions, YFII directly destroys additional issuance permissions, so as to dispel users' concerns about the project.
For players who have tasted the sweetness of YFI before, and players who are jealous but have not had time to participate, YFII is a good speculative place.
"Fork? YFII? Can it be done?"
YFII, which was born out of YFI, was not favored at the beginning. In the eyes of many people, it is nothing more than a domestic counterfeit product.
However, the subsequent skyrocketing price of YFII made many short-sellers shut their mouths and silently spit out two words: "It's really fragrant".
Coupled with the subsequent Balancer "blocking incident", YFII immediately took off the "cottage" hat and became the "DeFi domestic product" in the players' mouths.
Of course, the rise of YFII is inseparable from the accumulation and foreshadowing of YFI, just as the success of BCH is inseparable from BTC.
For players who have tasted the sweetness of YFI before, and players who are jealous but have not had time to participate, YFII is a good speculative place.
Almost like YFI, a large amount of funds poured into the pool of YFII, and a large number of retail investors bought and sold tokens in the secondary market.
Talk show-style propaganda, persuasion strategy combining pros and cons, whether to buy or not to buy, to sell or not to sell, this is a communication contest mixed with interests and psychological games.
In addition to the "assist" of YFI mentioned above, the skyrocketing price of YFII is also inseparable from the crazy calls from the domestic community.
Speaking of calling orders, the creativity of the YFII community in this area is completely "comparable" to the innovation of the YFI founder in the project.
Talk show-style propaganda, persuasion strategy combining pros and cons, whether to buy or not to buy, to sell or not to sell, this is a communication contest mixed with interests and psychological games.
Members of the YFII community call out to persuade them to quit
Members of the YFII community call out to persuade them to quit
What are the risks of YFII? The biggest risk of YFII is that you cannot hold it.
Mining? Why do we need to mine, let the people who mine mine take risks, can't we just lie down and buy it?
Some users frankly admitted to DeepChain that they hesitated when they did not buy, and became more anxious after buying, because the price of the currency fluctuated too much.
Some users directly called out that there has never been a community as active as YFII's community. If you don't read it for a while, thousands of messages have passed.
Some users frankly admitted to DeepChain that they hesitated when they did not buy, and became more anxious after buying, because the price of the currency fluctuated too much.
The rapid development speed and fiery community atmosphere have made Compound co-founder, DoveyWan and other KOLs in the cryptocurrency field interested in YFII and joined YFII’s WeChat community.
The rapid development speed and fiery community atmosphere have made Compound co-founder, DoveyWan and other KOLs in the cryptocurrency field interested in YFII and joined YFII’s WeChat community.
Amidst the shouts one after another, the price of the currency has risen, the number of addresses holding the currency has increased, and the size of the fund pool has become larger. In the words of community members, making money is as easy as "breathing".
Blocking and anti-blocking
Just when YFII was advancing indomitably and triumphantly, a dramatic scene appeared.
On the afternoon of July 29th, Balancer, YFII's main trading platform, suddenly banned the front end of the YFII fund pool, and directly marked it as ScamPool (fraud fund pool) in the front-end code.
In fact, YFII has been marked as high risk on the Ethereum browser Etherscan and wallet MetaMask. It’s just that these are innocuous, and the ban on Balancer is equivalent to depriving miners of an important entrance for mining and recovering profits.
For a while, the community panicked, and the currency price dropped from more than $700 to more than $400.
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However, what is interesting is that not long after, Timur Badretdinov, the front-end development director of Balancer, apologized in the community, saying that it was his own operational error that caused the YFII pool to be blocked, and reopened the YFII mining front-end page.
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Balancer's apology did not calm the anger of the YFII community. On the one hand, as a decentralized product, the ban is undoubtedly a mockery and blasphemy of decentralization. On the other hand, this incident did cause a lot of turmoil in the YFII community.
With an attitude of tit for tat, the YFII community reacted quickly and produced the Balancer YFII version, threatening to "fork" Balancer.
In addition, since the YFII community is dominated by Chinese people, while Balancer is a foreign platform, the struggle between blocking and anti-blocking has become a struggle between the Chinese community and foreign platforms.
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Members of the YFII community express their anger
In addition, the ban of Balancer can be said to be the first setback encountered by YFII since its establishment, and it is also a severe test for the single-calling team.
But the facts have proved that in the face of interests, human nature cannot stand the test.
The so-called Holders are nothing but frivolous speculators, and there are many high-profile callers who have quietly left the market.
For YFI, mining is basically controlled by large investors, and the income of retail investors mining with small funds is not worth the handling fee. Although it is a decentralized product, it is not a fair game.
For YFI, mining is basically controlled by large investors, and the income of retail investors mining with small funds is not worth the handling fee. Although it is a decentralized product, it is not a fair game.
Therefore, taking orders in the secondary market with strong FOMO sentiment has become the choice of more people.
Large households mine, the community shouts orders, retail investors take orders, you sell chips, I take them, and then sell them to him, gather popularity, and make the plate bigger...
Stripping away the bright coats of DeFi, liquidity mining, community governance, Bitcoin in the DeFi world, etc., you have to admit that YFI and YFII standing in front of you are two niche capital markets with high thresholds.
Therefore, taking orders in the secondary market with strong FOMO sentiment has become the choice of more people.
Large households mine, the community shouts orders, retail investors take orders, you sell chips, I take them, and then sell them to him, gather popularity, and make the plate bigger...
Stripping away the bright coats of DeFi, liquidity mining, community governance, Bitcoin in the DeFi world, etc., you have to admit that YFI and YFII standing in front of you are two niche capital markets with high thresholds.
It is in this kind of shouting and receiving orders that the founders bluntly said that the tokens have no value, and the "experiment" of the minority has become a carnival for the public amidst the noise.
Of course, it is not appropriate to use the word "public", because until now, YFII has only more than 1,300 currency-holding addresses, and the amount of funds in the pool is only about 150 million US dollars.
It cannot be compared with the 2 million people and 40 billion MLM scale of PlusToken that was just destroyed, and it cannot be compared with the market value of Bitcoin of 200 billion US dollars.
However, in the eyes of some people, a single spark can start a prairie fire.
In addition, the scale of the community is also expanding. YFII, a project that originated overseas and developed locally, is now exporting in reverse. In the words of community members, foreigners should take over.
If the cryptocurrency market is a piece of grass, then DeFi can be said to be one of the young shoots, and YFI and YFII may be the crystal dew on the young shoots.
Although what the picture wants to illustrate is that DeFi is extremely small in the entire cryptocurrency market.
Although what the picture wants to illustrate is that DeFi is extremely small in the entire cryptocurrency market.
However, if you think about it the other way around, if cryptocurrency has a future, the border of this meadow will expand into a vast grassland. If DeFi has a future, this young shoot can grow into a towering tree. will nourish the soil.
The question of whether YFI and YFII are "Bitcoins in the DeFi world" is difficult to answer, just like asking whether Bitcoin is a Ponzi scheme.
However, before that, it would be better for the cryptocurrency industry to have less brainless shouting and hype with private goods, and more thinking, debate and innovation about the future of DeFi.
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