Why can YFI break through $30,000? From the income of Yearn platform

Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.

1 YFI=1 BTCEditor's Note: This article comes from

Golden Financebitcoin, reprinted by Odaily with authorization.

Before August 20, many people were skeptical and even mocking of it. But the price of YFI really managed to surpass the

bitcoin

, and continued to rise at a high level, the current price of YFI has exceeded 32,000 US dollars.

In fact, many people do not understand why YFI is so valuable? We can analyze it from the income perspective of the yearn platform.

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The entire yearn ecosystem can be said to be a revenue-generating and profit-generating machine.

Yearn income sources include: yearn.finance interest, Compound’s COMP, curve.fi’s CRV, curve.fi/y pool transaction fees, yswap.exchange transaction fees, yborrow.finance transaction fees, ytrade.finance leverage fees and liquidation Fees (still on testnet), yliquidate.finance liquidation fees (still on testnet), systems (unallocated interest or fees), and the just-announced decentralized insurance service yinsure revenue.

Currently there are two main products: Earn - deposit funds, automatically earn the best interest rate; Vaults (machine gun pool) - deposit funds, automatically use the optimal strategy to obtain high risk and return

Yearn charges smart pool investors 0.5% of the principal and 5% of the income, which comes from the sale of farming assets. Take the yCRV smart pool as an example: the yCRV stored in the Vault is deployed using the CurveYCRV strategy, which will mine CRV and sell it to buy more yCRV. 5% of the income will be collected every time it is withdrawn, and the income will be controlled by yearn governance.

Smart Pool Income

You must be wondering where the machine gun money is going. The figure below shows the scale, strategy and investment amount of several smart pools in yearn.

The annualized income of Smart Pool is very high, for example, the annualized income of yCRV is as high as 111%. Investors invest up to 120 million US dollars, and at the same time bring rich returns to yearn and investors.

Moreover, the smart pool strategy is completely open, and anyone can view the operation of the smart pool on the chain. When smart pool investors liquidate their investment funds, yearn will get management fees and revenue sharing, and strategy developers will also get part of the sharing.

yearn income and YFI holders

YFI is the governance token of yearn, so how does yearn's income benefit YFI holders?

Remember, YFI has no pre-mining and no team share, but yearn founded by Andre himself. There are only 30,000 YFIs, no more.

How to develop and better UI for YFI? The YFI community voted in favor of the YIP-36 proposal, which determines that yearn will use system revenue as operating funds. In particular, 100% of the income earned by the system is sent directly to the Multisig treasury. Among them, $500,000 is used to fund Andre's development, UI upgrades, security audits, etc., and all other rewards will be directed and distributed to YFI staked in the governance pool.

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