Missed YFI, what other liquidity mining projects are worthy of attention?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Crypto Valley Live (ID: cryptovalley)
Summary
Crypto Valley Live (ID: cryptovalley)
, Author: Steven Zheng, translation: Ling Jie, reproduced by Odaily with authorization.
Summary
Leveraging liquidity mining and yield farming, The Block summarizes and visualizes popular incentive schemes launched by DeFi protocols"These projects involve protocols such as Balancer, Compound, and Synthetix"Nothing sums up the ongoing yield farming trend in the Ethereum community quite like the launch of YFI.
YFI is called by itself
DeFi architect
Launched by Andre Cronje of yEarn, it is the native governance token of yEarn, which is a combination product of yield optimization protocol and DeFi project.
Liquidity mining, pioneered by the now-defunct cryptocurrency exchange Fcoin, can be viewed in a similar light to currency mining. Liquidity providers provide liquidity to the platform in the form of encrypted currency assets and are rewarded with the platform's native token. Yield farming is just another term for the act of generating the best possible yield from an asset.
With an initial supply cap of 30,000 tokens set, the price of YFI instantly surged from $34 to $1,700, resulting in four-figure APYs for liquidity providers (LPs) (LPs at one point saw via deposits on Curve close to 2000% APY).
Synthetix
Total liquidity in Curve’s yPool (the liquidity pool integrated with the yEarn protocol) has increased by 2619% since YF’s launch, showing the impact of the frenzy.
With liquidity mining and yield farming in full swing, The Block will provide an overview of popular yield farming initiatives currently underway.
Release time: July 2019
Compound
Fcoin pioneered the concept of liquidity mining in the cryptocurrency industry, while Synthetix optimized its use for DeFi protocols. To incentivize the creation of a deep liquidity pool for its many synthetic assets, Synthetix rewards regular distributions of SNX to liquidity providers.
The first Synthetix liquidity mining rewards are for sETH/ETH pools on Uniswap. These programs are usually active for a specified period of time before being depreciated. However, users can receive regular dividends from SNX by providing collateral directly to the Synthetix platform.
Release time: February 2020
Balancer
Compound is known for popularizing the method of using liquidity mining to distribute native tokens. It launched COMP with the idea of completely decentralizing the governance of its platform. The secondary effect of COMP’s issuance and the subsequent price increase led to a large amount of liquidity flowing into Compound, enough to overtake MakerDAO to become the largest DeFi protocol with value locked.
secondary title
mStable
Between releases: June 2020
After the success of Compound and COMP, Balancer launched its own liquidity mining plan. While the platform originally rewarded all liquidity pool creators on its protocol, however, after some reward manipulation by participants in the space, the team introduced a whitelist that only allowed eligible pools to collect BAL tokens .
Release time: June 2020
BZX
Following the launch of Balancer, mStable announced its liquidity mining plan to bootstrap liquidity on its newly launched platform.
secondary title
Ampleforth
Release time: June 2020
secondary title
Curve
Release time: June 2020
To get out of the woods, Ampleforth launched its liquidity program on Uniswap to bootstrap on-chain liquidity for its automated stablecoin. LPs who provide assets to the AMPL/WETH pool will be rewarded with AMPL tokens.
