DeFi really changed the life of VC? Thinking after the rise of YFI, Sushi and other grassroots projects
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, translation: overnight porridge, published with permission.
Last weekend, the price of YFI (big uncle) broke through $35,000, so all eyes were on DeFi.
Since the yield farming and yield farming boom, we have encountered a common theme: fair rollout.
In the world of Ethereum, there is a long-standing assumption that the fees of rent-seeking protocols will generally tend to go to 0, or at least as low as possible, because any protocol that introduces fees also introduces an incentive to fork. A fork can offer the same product/service but without charging a fee.
Therefore, it is believed that the protocol or team can only charge a certain fee, as long as the threat of forking the protocol is minimized.
Over the past 2-3 years, all the money Lego has given the grassroots community the tools needed to replicate every DeFi application on Ethereum and relaunch it with a new set of protocol owners.
The motivation for this is so simple that every DeFi application will have a "fair release" replica, which is easy to predict.
Frankly, this incentive comes from the same energy as a lot of ICOs in 2017: the team forking the protocol has privileged knowledge and early access to benefits. At the same time, however, the incentives are completely different, as forked teams have no ability to acquire an inappropriate proportion of tokens or print any currency for themselves.
Same model, new structure, a big step in the right direction.
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Ryan said on Twitter on Sunday that venture capital needs to buy retail investors' chips to enter the ranks of YFI, which is in line with his preferences, and the tables are turning!
But Jacob Franek of Coinmetrics objected to the fact that many venture capital funds are also in these yield farms. James Prestwich also echoed his point of view. He pointed out that DeFi farmers who are farming have an average position of $117,000. This is obviously not a game for retail investors, but a game for whales, just like the old boss.
Jacob and James missed something, we just invented a new way to give retail investors the same level of access as VCs! Joey Krug of Pantera Capital confirmed this, his fund was not designed for YFI farms, so they had to buy it.
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cosmic law
It's important to remind ourselves that some laws are written into the fabric of the universe itself and they can never be violated, such as:
capital begets capital;
People who pay to make money perform better than those who don't;
Professionals and professional teams have more resources to make smarter decisions than the retail crowd;
One more thing that is also written into the fabric of the universe is that humans tend to create new systems of fairness and integrate into the world permanently.
The world always tends to be more fair and equal, and the way humans organize themselves over time has become more and more equitable.
In the new wave of fair issuance and liquidity mining, we did not put VCs behind retail investors. On the contrary, we gave retail investors the tools and opportunities to become VCs!
Venture capital will never go away, there is always the possibility of getting a head start and paying someone else to do it for you, that's VC.
The fair launch of Ethereum does not care whether VC or retail investors are competing for the proceeds, if someone tries to limit VC participation, it will no longer be a fair launch.
