DeFi has added a myth of getting rich, 1500 times YFI, what about aggregators?
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Produced | Benz Finance
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Due to the rapid development of the DeFi market, both financial products and decentralized exchanges (DEX) have attracted a large amount of funds. DEX has even dominated the direction of listing coins on traditional exchanges. Previously, traditional exchanges had to keep up with the trend. The trend of DeFi, and under the double expectations of DeFi and ETH2.0, ETH is expected to lead a wave of "bull market", and the market atmosphere is thriving.
Maybe many users only care about Bitcoin, but unknowingly missed the bull market belonging to the DeFi sector, but don’t worry, the market is never short of opportunities, as long as you keep an eye on the development of the industry and learn the latest concept technology, everything is available Perhaps, the current blockchain is still similar to the early Internet era.
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Aggregation is the word that many users heard for the first time that it should be an aggregation exchange. The so-called aggregation exchange is an exchange that aggregates the liquidity of many exchanges. For example, OKEx has 10,000 bitcoins, and Huobi has 10,000. If there are 10,000 coins and Binance has 10,000 coins, then the aggregation exchange can bring together the depth of the three exchanges, making the entire aggregation market have 30,000 buying orders.
The same is true for aggregation protocols or aggregators, which are essentially an aggregation service provider, but the aggregators we refer to are decentralized aggregators, which mainly aggregate products in the DeFi field, because the products in the DeFi field are relatively illiquid The barriers to entry are relatively high, so aggregators can play a huge role in the DeFi field.
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Since DeFi has become popular, various types of products have emerged in an endless stream. Are you confused by professional financial gameplay? Many people think that DeFi can lead a bull market, but a bull market means incremental funds. Facing such complex and professional financial products , even some people in the industry can’t fully understand it, let alone expect outsiders to spend time researching it. In the eyes of outsiders, it’s good to be able to understand what’s going on with Bitcoin.
The aggregator has seen this problem, so the meaning of aggregation is to lower the threshold for users. For example, in the face of numerous DeFi lending products on the market, if you are asked to find a product with the lowest lending interest rate, you may need to search for a long time, while the aggregator will It can help you choose the product that best meets your needs; another example is that you want to trade a certain token on a DEX, but you don’t know which DEX trading slippage is the smallest, so the aggregator can help you pool the depth of multiple DEXs to To provide you with the transaction service with the best transaction price.
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What is YFI
yearn.finance is a lending aggregation protocol. It is an aggregation platform for the profit output data of different products. It serves the decentralized loan platform. It obtains the output option with the highest profit in the contract transaction interaction by rebalancing the data , YFI is the governance token of yearn.finance. YFI itself has no actual financial value. It can only determine the development direction of the YFI protocol and vote for community governance.
It will be easier to understand it with an example. If a user holds a large amount of USDT, he wants to use these USDT for decentralized financial management to obtain some interest income, but he is faced with many DeFi products and does not know what to choose, then he can convert USDT in the YFI protocol to YUSDT, the YFI protocol will look for the best DeFi financial products on the market to help you get the highest interest, all of which are realized through algorithms and completely decentralized.
But at present, YFI’s liquidity mining has ended, followed by a sharp drop in YFI’s locked assets. A total of three liquidity mining pools have been opened before, namely YFI-yCRV pool, ypool on Curve, and ypool on Balancer. In the YFI-DAI pool, the average income of users who participated in liquidity mining in the early stage is higher than 1000%.
At present, YFI has been forked out of YFII by the Chinese community. Although it was briefly blocked by Balancer, the voice of the rise of domestic DeFi has begun to spread in the community. Benz Finance would like to remind everyone that it is not a product launched by a reliable team, and it is still prudent as well.
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Aggregator flaws
In addition, aggregators may not be able to retain users. Once users learn to use various DeFi products, have a deeper understanding, or the arbitrage opportunities of other DeFi products are attractive enough, then users may directly participate To a specific application, rather than using an aggregator.
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epilogue
Aggregation theory is more common in some giant companies, such as Tencent, Google, Ali and other institutions that have monopoly positions in their respective industries. Binance may be a relatively similar company in the current blockchain field. It has many users around the world and is actively deploying various industries. Class products are essentially a big aggregator.
