August Insanity for $YFI

No more $YFI minting, $CRV tokens incoming, but the Chainlink Vaults will change everything!

Did you get any sleep this weekend? We didn't.

While we are $YFI Maximalist Mega-Bulls we believe that August is setup perfectly to be a month where the waifus and marines take over.

This article will explain our reasoning why and then also update you on what's happening in the world of $YFI.

The YIP-30 Vote Flips

With three hours left to go, Andrew Kang lead the charge to vote against YIP-30.

The vote was flipped and YIP-30 did not pass.

At this time no more $YFI will be minted, but this can always change with a community vote.

Sentiment on discord, telegram and twitter varied. Many carried the opinion that while YIP-30 could work and may even be the optimal solution for $YFI and Yearn long-term, it is still too early to start minting new tokens and other options should be considered.

A new proposal has since been posted in the forum that would have 150 new tokens minted for development, security audits and other needs. It seems like this would solve the immediate needs for the Yearn ecosystem.

We will continue to update you on twitter (@learn2yearn) as this progresses.

Overall it's impressive how fast the $YFI community is forming / moving in what is the best experiment on the blockchain since bitcoin.

Hopefully we can keep up with Andre... August is going to be an insane month.

How the $CRV Token Benefits $YFI

We were able to confirm that if you are staking in the $yCRV Vault, you will receive the $CRV token when it is released.

The entire DeFi world is waiting and watching for $CRV.

$CRV is a governance token with time-weighted voting and value accrual mechanisms.

  • Governance with time-weighted voting

  • Value capture mechanism to promote certain pools

  • Locking mechanism to accrue rewards for long-term liquidity providers

  • Fee burn (once enabled by governance further down the road)

To learn more about the token you can read their medium post here.

How does $CRV benefit $YFI?

@bambouclub was kind enough to provide the answer.

Increased capital flow into the stablecoin market will lead more money being deposited into Yearn, but also increase adoption overall.

While Curve.fi can be daunting to most, layers like Zapper.fi will make it easier for people to onboard onto DeFi. Meanwhile $ETH and $BTC rallying means people are paying attention to crypto again and getting involved. They may be skeptical about the latest $YFIIIII fork with an unstable 4206969% APY, but getting 5% and a $CRV token they can trade on a DEX is very cool + important.

Let's stay with the capital flow trend because here is where we start jumping out of our pants / panties.

Voting for YIP-33 is currently underway and will end at block 10599895 (8/5/2020 ~ 7:05). At the time of writing it is overwhelmingly in favor of passing with 99.51% of the vote.

YIP-33 is simple:

Add Chainlink (LINK) as the first volatile asset to be used as collateral in delegated yVaults.

It's unclear how fast the Link Vault will get setup if/when the vote passes. We are expecting it to be almost immediate as it has been coming for some time.

We believe this has the potential to be bigger than $CRV release.

It all comes back to capital flow.

Curve.finance TVL is $296mm at this time, meanwhile Chainlink has a total market cap of $2.9 BILLION.

And the $LINK isn't flowing anywhere...

Until now! Adding $LINK to the Yearn Vault gives $LINK marines their first opportunity to maintain exposure to the asset they love while also earning interest.

Is it impossible to think that Yearn sees $300mm or more of $LINK deposits into the new vault?

What will that do for the $YFI token that earns a 0.5% fee for withdrawals?

Plus... $LINK marines have the best memes / marketing. How pumped are they going to be when they're earning a return on their $LINK using Yearn Finance?

Insurance for the Yearn Vaults

Yearn Vaults are carry a high degree of risk.

This is magnified when you go from a stablecoin like $USDC to a volatile asset like $LINK (even if does only go up😂).

It's a concern for everyone using the product and a massive failure could be extremely hindering to the growth of Yearn and $YFI.

Today baby yoda (@k_mpec80) asked Andrew about offering insurance to limit risk on the vaults.

Andre goes on to tag Hugh Karp (NexusMutual) and they're going to work out the details to make it happen.

Even our friends Curve jumped in the thread with a fire emoji.

Summary:

There are no more $YFI rewards coming.

Additional minting may occur but it will be a small amount ~ 150 $YFI to fund development, security audits and other activities with the unused $YFI to be burned.

Supply is expected to remain at 30,000 $YFI.

An inflow of capital to stablecoins is expected when Curve Finance releases the $CRV token.

99% of $YFI voters are currently in favor of adding Chainlink as the next addition to the Yearn Vaults. This has the potential to bring hundreds of millions in TVL to Yearn as it represents the first and . only way $LINK holders can earn interest.

Since Vaults are new and carry a high degree of risk, insurance will be provided by NexusMutual. Thus leading to greater adoption and usage of the platform.

ALL IN ON $YFI

The best angel investors in the world will tell you they bet on founders. Not on ideas.

In a short time frame Andre has shown the ability to:

  • build genius products (we haven't even seen all of what YEARN can do)

  • adapt to new situations (like a million forks + clones and farming $YFII)

  • most importantly forgetting about the narrative (the $YFI token that went up 100000%) and get back to shipping (insurance + $LINK vaults)

Yearn Finance and the $YFI token is an investment in a too smart for mensa founder / genius who is decoupled from his own ego leading the most exciting blockchain experiment since Bitcoin that is simplifying decentralized finance in the midst of a macroeconomic environment where the world's reserve currency is collapsing.

For now you have the opportunity to own 1/30000th of this experiment for ~ $4,000 USD.

How much longer is yet to be seen.

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Thanks!

@learn2yearn

Editor's note: We have been alerted that the ASUKE fork we tweeted about here is a scam. Although our audience is small we are concerned that we inadvertently promoted a scam. Our team has decided to leave the tweet up. Going forward we will not be sharing any information regarding forks or clones unless the information specifically benefits $YFI holders.