IOSG: Three No Products, Fair Start? DeFi you don't know

Source: Eric Turner - Twitter

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# YFI do you really understandimage description

What exactly is YFI#43 WeeklyWe mentioned the "three no projects", which refer to projects with no investors, no pre-mining, and tokens with no economic value. YFI fits such a definition. Sushi, an anonymous project that recently attempted to challenge Uniswap, suffered a credit collapse as the founder dumped community tokens, but the trend of native blockchain communityization is irreversible.

YFI is the governance token of Yearn.Finance. Yearn.Finance was established in January 2020. Before July 16, 2020, Yearn Finance was just a simple income aggregator, whose purpose was to help users optimize their income on Defi. At that time, Yearn’s locked position was about 8 million U.S. dollars (the annualized return was maintained at about 10.58%). As Compound started the Defi liquidity mining boom in June 2020, many projects also joined the liquidity mining industry. (

For more information, please refer to our research article on liquidity mining

). On July 17, 2020, Andre Cronje, the founder of Yearn.Finance, announced that the governance rights of the protocol will be delegated to its community members, and it will cooperate with Curve and Balancer.

What gameplay is YFI still innovating?

2. YETH Smart Pool: The latest yETH product launched by Vault has an annualized return of about 90%. It only took 4 hours to go online, and the locked position exceeded 40,000 ETH. Therefore, we believe that Vault solves the education cost required for user farming, and also solves the problem of frequent small transactions and high transaction fees.

What makes YFI hot

Source: learnyearn.finance

As of September 3, 2020, Yearn. Finance ranks fifth in the DeFi lockup ranking, with a lockup volume of 892.5M, surpassing Compound (709M). As we wrote in our previous liquidity mining report, the initial "manual farming" of liquidity mining requires users to manually deploy their own funds to different protocols, which requires users to be aware of different DeFi projects. Have a deep understanding. We’re seeing more and more projects launching their own liquidity mining, which makes yield farming increasingly complex. Coupled with the congestion of Ethereum and the substantial increase in transaction fees, many retail investors cannot benefit at all. At the beginning, the idea of ​​yearn was simply to help users find the best profitable DeFi platform. Whenever users deposit/withdraw their funds into/withdraw from yearn's pool, yearn will look for better income opportunities. If so For better income opportunities yearn, the liquidity pool will be readjusted (for example: when Aave's interest rate is higher, users' funds will be transferred from compound to Aave).

Source：IOSG Ventures

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Who is paying for the high yield?

Due to Yearn's high yield, we are not surprised that a large amount of funds flow into Yearn, but who is paying for Yearn's high yield? Since users can directly participate in the liquidity mining of different projects through Yearn's Vault, and in Speculators in the secondary market believe that the tokens of different projects mined by users through Yearn vault participation in liquidity mining still have room to rise, so these speculators will buy these tokens on exchanges. We believe that these speculators in the secondary market support the high income of Yearn users and believe that the income of Yearn users will decrease after the speculation ends, so Yearn may need to provide more sources of income to its users in the future.

Is the age of VCs coming to an end?

We believe that Yearn has a profound impact on the community. In just over a month, the community has established a project with a market value of nearly one billion US dollars. We have also seen that Yearn plans to launch VC Vault to build a decentralized governance system. VC. This makes many of us think that venture capital funds will be replaced by the community, and the blockchain VC era will end. Here we introduce the concept of a fair startup fund.

The "Fair Launch" project is a decentralized crypto network that has been acquired, owned and managed by the community from launch, allowing everyone to participate equally in the project without any early access privileges, pre-mining or distribution of tokens.

Here's how Fair Start works:

* First, for those projects that wish to use the "fair launch", some of the most promising ones will be selected;

* After the project is launched, there will be a governance vote to allow the community to decide whether to "advance" the grant to the next project to have a "fair launch".

We think it may be too early to say the end of the era of VC. In addition to providing funds, institutions will also provide different dimensions of support for projects. But the emergence of Yearn does make us pay attention to feel the decentralized community spirit. As an institution, we also see that capital is not a master key. As an investment institution that deeply cultivates the industry, IOSG is also actively participating in the communities of various DAO and DeFi projects, helping the projects grow as community members. We believe that the success of Yearn will bring a fair token distribution mechanism and a fair token distribution mechanism from the very beginning. The completely decentralized governance model has become a new development trend.

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Part.2 Industry Pulse

IOSG VC: 

The yearn community initiated a governance proposal to add a CFAMM mechanism to the Y pool, aiming to minimize governance risks

* Community

Ali Atiia, a Ph.D. in computer science from McGill University, initiated a yearn governance proposal that connects CFAMM facilities to the Y pool. According to this proposal, anyone can call a public function to supply a certain amount (X) of stable coins, and then get a certain amount (Y ), another stablecoin, the quotation provided is based on the CFAMM curve optimized by the stablecoin. If the transaction is successful, the Y pool is rebalanced if necessary. The effect of optimizing the distribution of income generated by the fund pool is equivalent to batch trading one token and withdrawing another token. This move is aimed at minimizing governance risk, and liquidity providers providing Y tokens should not take unnecessary governance risk.

1) The main purpose of this proposal is to avoid the risk that Curve's governance may have on the interests of the Yearn community, and to more directly distribute transaction revenue;

* DeFi

2) Basically redeploy the Y Pool currently deployed on Curve to a yearn's own AMM Pool;

3) Andre himself expressed his opposition, because of the new risk, which violates composability, and re-creating an AMM Pool by himself also involves the cost of integrating with other DeFi ecological projects (such as 1inch).

* ETH2.0

DeFi gamification product GoodGhosting will soon launch Genesis Savings Pool

GoodGhosting, a DeFi gamification product, announced the upcoming launch of Genesis Savings Pool. The GoodGhosting team participated in the incubation of Gitcoin KERNEL and won the previous ETH London finals. GoodGhosting is like a fixed investment challenge game designed for users to make mandatory savings. All participants need to set the saving time and the amount of funds saved each time, which can be paid in USDC or DAI. All assets put into the savings pool by users will be allocated to Aave and Yearn to obtain loan income. When the game is over, all the principal will be returned to each user, but only the users who insist on making every bet without missing can divide the interest in the fund pool. The official stated that the current smart contract has not been audited and there are risks.

* Gas Fee

Ethereum 2.0 latest development: Medalla test network is progressing smoothly, currently has 39,000 active validators

Danny Ryan, the project leader of Ethereum 2.0, wrote an article to announce the progress of Ethereum 2.0. The details are as follows: 1. Since the "clock synchronization" problem occurred in Medalla after the test of Ethereum 2.0 on August 14, the progress of the Medalla test network has been very smooth, and there are currently 3.9 10,000 active validators, and 12,000 in the activation queue (32 ETH staked, waiting for activation); 2. Although there are many Ethereum 2.0 clients under active development, the network is currently dominated by a single client, Prysm.

StarkWare Releases Cairo, the First Production-Grade Turing-Complete Framework, Allowing Users to Scale Massively on Ethereum with Low Gas Fees

Zero-knowledge proof research and development organization StarkWare released the first production-level Turing-complete framework "Cairo". "Cairo" enables users to achieve massive expansion on Ethereum with low gas fees. StarkWare will provide Cairo developer tools over the next few quarters.

Oasis Protocol will release the native token ROSE when the main network is launched, with a total limit of 10 billion

* native token

Oasis Protocol, a blockchain privacy computing platform, announced that it will soon launch the Oasis network native token "ROSE". The circulation of ROSE tokens at the start of the main network is about 1.5 billion, and the total limit of tokens is 10 billion. According to Oasis Protocol, the word "ROSE" has historically been seen as a symbol of privacy. ROSE tokens will be used for all trading, staking and delegation functions on the Oasis network. ROSE's token distribution model is as follows: 1. 1.95 billion tokens for pledge rewards; 2. 2.3 billion tokens for early supporters; 3. 2.25 billion tokens for the community and ecosystem; 4. 1 billion tokens donated by the foundation; 5. 500 million tokens for strategic partners and reserves; 6. 2 billion tokens for core contributors.

Uniswap's 24-hour trading volume exceeds that of centralized exchange Coinbase Pro for the first time

* Decentralized exchange

The trading volume of the decentralized exchange Uniswap hit a record high, with a 24-hour trading volume of more than 441 million U.S. dollars, compared with Coinbase Pro’s daily trading volume of 373 million U.S. dollars, which means that the 24-hour trading volume of the decentralized exchange exceeded the central chemical exchange.

BitGo to Provide Custody Services to Japanese Crypto Exchange Bitgate

* exchange

Crypto custody service provider BitGo announced that it will soon provide custody services to Japanese cryptocurrency exchange Bitgate to safely keep Bitgate customer assets and meet new regulations set by local financial regulators.

IOSG VC:

Actually, Lien listing has been delayed and iDOL mining has been paused due to the high volatility of ETH. The exact date is yet to be decided, however, it will be only after the ETHUSD rate volatility drops below 100%. The Lien protocol has a built-in algorithm that prevents iDOL mining whenever the annualized volatility exeeds 200%. The volatility is calculated using the most recent data provided by ChainLink oracle.

The DeFi stablecoin protocol LIEN will be launched on FairSwap on September 7th for public offering

* SEC

US SEC Commissioner Hester Peirce: DeFi has attracted the attention of the SEC, and there are certain challenges to the regulatory approach

Hester Peirce, Commissioner of the US Securities and Exchange Commission (SEC), said in an interview, “Although DeFi is still in its infancy, this has attracted the attention of the SEC because DeFi raises a “game-changing” issue. This will challenge the way we regulate. "

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Part.3 Investment and financing events

Tokenized Blockchain Fund SPiCE VC Has Been Listed on Malaysian Digital Stock Exchange Fusang Exchange

* Tokenized Blockchain Fund

Blockchain venture capital firm SPiCE Venture Capital said its tokenized blockchain fund (SPiCE VC) has been listed on Malaysia’s digital stock exchange Fusang Exchange. Tal Elyashiv, director of SPiCE Venture Capital, said, "In the venture capital industry, liquidity is the most concerned issue for investors, and we hope to find a solution for this." The company's director Tal Elyashiv turned to Asia for token liquidity. Note: Fusang Exchange is a Malaysian compliant digital stock exchange initiated by Henry Chong, the son of Zhang Guoguang, the chairman of Singapore's Baodeli Credit Communication. SPiCE provides investors with exposure to the blockchain and tokenization ecosystem, investing primarily in portfolio companies aiming to change the digital tokenization landscape.

Polkadot Privacy Protocol Phala Network Receives Strategic Investment, IOSG and Other Well-known Institutions Participate

* Privacy Agreement

Phala Network, Polkadot's ecological privacy infrastructure, announced the completion of strategic financing with a valuation of tens of millions of dollars. Phala Network has been building on the Polkadot ecosystem since the beginning of 2019. As a privacy computing parallel chain on Polkadot, Phala uses a PoW-like incentive mechanism to conduct large-scale distributed deployment of CPUs with TEE functions, thereby solving the problem of privacy on the blockchain. problems, thus serving applications such as DeFi and data services on Polkadot. The landing scenarios developed based on Phala include the Libra bridge, Web3 Analytics and decentralized dark pools, and received three fundings from Polkadot.