DeFi is the future of finance, and YFI is the future of DeFi?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
The pace of life is quite fast. If you don't stop by occasionally, you might miss it. - Ferris Buller
During these three years, yearn is the most interesting and influential project I have seen.
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TVL As Of 9/20/20
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This article does not delve into yearn. In other words, when you're done watching, you won't know much about yearn, but you'll have a better understanding of its origins and ambitions. If you understand this and you're curious, you'll want to know more.
It all starts with iearn.finance
text"On January 26, 2020, Andre Cronje (founder of yearn) launched iearn.finance to optimize the return of lending assets to platforms such as Compound and Aave, and to provide liquidity on Uniswap. Andre's first update on February 7 revealed that he was already innovating rapidly. But with the development of yearn, it quickly encountered problems, mainly related to its continuous expansion."On July 15th, Andre wrote that the boom in liquidity mining when Compound launched its governance token in June made people feel that
". He writes that what is needed is-"。
A new product, one that is not trying to choose between these options, but can leverage those options for liquidity mining
In the days that followed, he published a series of articles detailing the building blocks needed, starting with an AMM that displays yield, a stablecoin as a transfer mechanism, and yswap.exchange, which allows users to pool Inject unilateral liquidity without impermanent losses.
On July 17th, YEARN released an announcement - don't buy it, earn it!"。
The yearn/YFI announcement lays out a slew of upcoming products. To earn YFI tokens, users only need to provide liquidity to one of the platforms, bet the generated tokens in the issuance contract, and earn a (governance-controlled) amount every day
text"Later that day, Yearn announced the launch of its first product, the curve.fi/y pool (currently over $750 million). On July 19, Yearn announced two new pools. The first new pool will acquire Balancer tokens by providing liquidity to the whitelisted pools. The second new pool will combine the ability to earn the best interest on stablecoin deposits with the functionality of the curve.fi/y pool and the Balancer pool."Each of the three pools is allocated 10,000 YFI governance tokens, earned by community members over a period of time. Incidentally, on September 12, Andre submitted
The proposal officially confirmed that the upper limit of the number of YFI tokens will be limited to 30,000 minted.
On July 24, Andre announced yearn V2, which includes three new elements, yVaults, a Controller that enables the governance layer to manage each pool to optimize the rate of return strategy, and a simplified container that holds Strategies to enable The return to a particular asset is maximized, no matter what. Rewards are shared by the governance ecosystem, miners and strategy creators.
On August 24, yearn announced yinsure.finance, a new insurance project, which is booming. On August 29, Andre announced the entrusted financing of DAO Vaults to provide funds for team building in the yearn ecosystem.
Again, the pace of innovation so far in August is truly astounding.
StableCredit, a protocol for decentralized lending, stablecoins and AMMs
On September 10th, Andre announced the stable currency (StableCredit), which is the most ambitious and innovative project of yearn so far. By combining the functions of lending, stablecoins, and decentralized exchanges, yearn is creating a new DeFi primitive, a one-sided decentralized lending protocol.
Messari illustrated and illustrated how it combines stablecoins, lending and decentralized exchanges.
Users can provide any asset (such as ETH) to StableCredit, and based on the value of the asset (feed by Chainlink), an equivalent amount of tokens will be issued in the form of StableCredit USD. ETH and StableCredit USD are then put into a 50:50 pool on Uniswap. By leveraging Uniswap, StableCredit has instant access to projects in Uniswaps, arbing to keep funds balanced and ensuring StableCredit USD remains at its anchor.
StableCredit USD will be the most scalable decentralized stablecoin in the world.
Depending on usage, asset providers can use up to 75% of StableCredit USD issuance to purchase other assets in the StableCredit pool (such as LINK). AMM defines the premium for borrowing and repaying an asset.
text"StableCredit will create more liquidity for the yearn pool, help the yearn pool to expand the yearn scale faster, and create more liquidity. In a virtuous circle, all YFI holders will benefit."text"September 17, the last time of yearn"Yes project is SyntheticRebaseDollar, an automated rebase index that tracks the dollar value of created collateral. Although Andre points out,
, but the post highlights the fact that when SyntheticRebaseDollar was created, it was the work of a prototype part of another ecosystem. The ecosystem, called SyntheticTrader, is a permissionless dollar-settled leveraged long/short synthetic derivatives protocol built on top of StableCredit. SyntheticTrader once again highlights the versatility of StableCredit, as well as yearn's ambition.
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Assuming a cap of 30,000 YFI, Yearn has passed its inflationary liquidity mining phase, which is the phase at which the project is most vulnerable to malicious forks. Yearn is now entering the phase where users pay YFI holders for the service.
However, many people still think that Yearn is just playing with the defi composability and economies of scale of gas and thinks that these elements can be easily replicated. However, they were wrong.
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