Iteration of YFI

Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.

Blue Fox Notes (ID: lanhubiji)YFI: BTC in DeFi?》

, reprinted by Odaily with authorization.

YFI has gained huge attention in the DeFi field, but this is just the beginning, and it is already planning V2. About YFI, you can refer to the previous article of Blue Fox Notes "

YFI: BTC in DeFi?

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YFI was mainly an optimizer of loan income before. Users deposit stable coins into the yearn protocol, and the yearn protocol helps users make adjustments in protocols such as Compound, Aave, bZx, and dYdx to obtain higher returns.

Now YFI is going to launch V2 under the impetus of Andre Cronje and community governance. The core of V2 is to be an optimizer of mining revenue. This iteration illustrates YFI's ability to grasp trends.

During the period when Compound, Aave, and Curve were on fire, stable currency lending and income were the main theme of DeFi during this period. Now, as mining has become the focus of attracting capital flows, and with more and more various mining plans, it is difficult for ordinary users to figure out how to play, and how to take care of it has become difficult, and YFI is trying to take advantage of its aggregator again : Help investors obtain higher returns.

Therefore, the goal of YFI V2 is essentially the same as that of V1: to become an optimizer of user benefits.

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YFI's V2: Optimizer for mining revenue

According to the information disclosed so far, YFI V2 is also a token pool model, which collects different tokens deposited by users into different pools, and then mobilizes funds from a certain token pool to participate in different liquidity mining according to strategies, thereby achieve higher returns.

The main task of the controller is to manage the funds in the token pool, which are used for liquidity mining. The flow of funds is implemented through deployment strategies. Therefore, the strategy itself is the key to realizing the benefits of user liquidity mining. Policies include system default policies and externally provided policies. The strategy provider also benefits if the externally provided strategy performs better. Due to the existence of strategies, this means that assets will be moved in different liquidity mining.

Finally, different token pools will use the token pool as the final settlement token for their income. Assuming that you have joined the DAI token pool for mining, then, during this process, through strategy adjustments, you may mine MTA, CRV, UMA, BAL, FYI, etc. When you finally withdraw, these income tokens will be converted by default for DAI. In the future there may be a non-liquidation option where mined tokens can be kept.

The token pool above is mainly the token pool of stable coins. If it is not a stable coin, you can also participate in YFI’s liquidity mining optimization. You can mortgage these tokens and then participate in liquidity mining through the lending agreement. .

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YFI's WAIFU Meme

Just like the community culture of Chainlink and Dogecoin, YFI has also started to have its own MEME. The MEME of 1YFI=1BTC was mentioned before. Now there is a meme of WAIFU again, the following picture comes from the YFI community:

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The battle between YFI and YFII

After YFII forked YFI, the community had various arguments about YFII, and even some people in the YFI community proposed a plan to attack YFII through mining: deposit everyone’s yCRV into yVault (token pool), and then pledge in the YFII pool yCRV mines, obtains YFII tokens, then sells YFII and exchanges them for DAI; then uses the exchanged DAI to participate in the mining of YFII-DAI on Balancer, and exchanges the mining income for DAI, which is re-mortgaged on Curve for yCRV, and repeat the above process for continuous mining.

The fork of YFII will definitely cause huge controversy, but for both parties, this kind of controversy can gain greater community attention and form a certain degree of competition, which will ultimately promote the advancement of DeFi.

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YFI may be a better "DeFi barometer"