Bottom YFI: $12,821, an "air" currency that surpassed BTC in a month
Editor's Note: This article comes fromDeepChain (ID: deepchain-eva)Editor's Note: This article comes from
1 YFI，1BTC。
DeepChain (ID: deepchain-eva)
, Author: Cola, reproduced by Odaily with authorization.
On August 18, the price of YFI broke through $12,821 for a short time, and was temporarily reported at $10,484 as of press time, an intraday increase of nearly 80%.
This governance token, called "air" by the founder, rose from $3 to more than $4,500 in just a few days after it appeared, and then experienced a fork, a price drop, and was listed on Binance... Now it has officially surpassed Bitcoin price.
For a time, there were overwhelming voices about YFI on social media.
What is YFI?
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.
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.
Of course, just this kind of idea that has long been rotten on the traditional Internet cannot retain the attention of old DeFi players, nor can it support its billion-dollar capital pool.
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.
"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".
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.
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, an increase of nearly 1,500 times. It can be said that the debut is the peak.
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.
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OKEx CEO Jay Hao unabashedly expressed his interest in YFI on Twitter; Yuchi founder Shenyu even revealed on Weibo that he "gained millions of Dai" in a week.
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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.
Correspondingly, various exchanges have listed 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.
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Fork crisis
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.
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.
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Propaganda documents made by the YFII community
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.
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YFII continues the "myth"
"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.
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.
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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.
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Mining? Why do we need to mine, let the people who mine mine take risks, can't we just lie down and buy it?
The YFI model is a cancer of DeFi, and YFII is a cancer of YFI.
Crashed, sell now! So that others have the opportunity to get low-priced chips.
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.
However, the development of YFII has not been smooth sailing, and the continuous smashing of the market has caused the price of YFII to plummet, greatly hurting its vitality.
And YFI has embarked on a steady upward path because of the favor of Binance.
On August 10, Binance announced the listing of YFI, and YFI rose sharply, from $4,100 to $6,446, an intraday increase of more than 57%.
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At $12,821, YFI has become the Bitcoin of the DeFi world?
The upsurge in the cryptocurrency market is always one after another, and the light of YFI is quickly overshadowed by YAM and later CRV.
However, although rookies continue to enter the field, YFI did not stop.
Since August, YFI has been making new moves. For example, through the YIP 33 proposal, it agreed to add the first mortgage asset LINK to the v2 version of entrusted yVaults. Another example is the recent announcement of the launch of the decentralized insurance service yinsure.finance.
After YAM collapsed in one day and CRV plummeted by 95%, everyone thought that the liquidity mining project would become a thing of the past, but unexpectedly, today, the price of YFI broke through $12,821 for a short time, with an intraday increase of nearly 80%, surpassing Bitcoin price.
For a while, the voices about YFI on social media were overwhelming.
In addition to the sighs of those who are short-lived and investors who surrendered their chips prematurely, there are more voices: What is YFI, and why is it rising so sharply?
However, if you really ask this question, it is estimated that no one will give you a serious answer. Maybe someone will ask: Why does Bitcoin rise?
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.
It is in this kind of shouting and receiving orders that the founders bluntly said that the tokens have no value, amidst the noise, they changed from a small "experiment" to a public carnival.
After all, compared with the 21 million Bitcoins, the total number of YFI 30,000 is too small, and it is too easy to cause the price to skyrocket under the dealer's manipulation. In addition, until now, the number of YFI’s currency holding addresses has not exceeded 5,000, and the number of people covered is limited.
However, in the eyes of some people, a single spark can start a prairie fire.
Previously, researchers from foreign institutions made a very vivid picture to illustrate the scale of DeFi in the cryptocurrency market.
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For example, if the cryptocurrency market is a grassland, then DeFi can be said to be one of the buds, and YFI may be the crystal dewdrops on the buds.
Although what the picture wants to illustrate is that DeFi is extremely small in the entire cryptocurrency market.
