We believe the the following:
YEARN is an antifragile system
YEARN will eat DeFi.
YEARN will eat CeFi.
$YFI makes you a member/owner of the system eligible for governance and distributions
Target price: ???
We don't have one. We are not interested in selling any $YFI and are continually buying at each pullback. In the event of an emergency and immediate need for capital, we would use $YFI as collateral for a loan.
We are here to help and here to stay.
This page is very much an alpha version and will be edited and updated by our team.
YEARN is antifragile.
Example 1: The YFII Fork
YFI was cloned by the Chinese aptly named $YFII. While the DeFi community was busy discussing the ethics of the fork and whether it was a scam, the pools amassed millioned in TVL and the price quickly appreciated in value. It had many people asking, if they can clone and improve upon the code then why is $YFI valuable at all? It could have killed YEARN.
Instead YEARN (Andre) used the event to create a new farming strategy utilizing the funds in the yCRV vault to harvest $YFII and dump it for more yCRV thus benefiting YEARN depositors. This is a clear display of antifragility. The system withstood the initial shock (cloning + brand name damage) and then benefited from it. It is clear there is only one $YFI.
Example 2: Adaptation to the DeFi
It only takes one look at this graph provided by Messari Crypto to understand what stage DeFi is in.
Throughout this cycle we’ll see numerous successes, failures, scams, trends emerge and trends die. DeFi was, is and will continue to be chaotic.
This is where YEARN benefits. YEARN’s core function is DeFi aggregation, continual adapations to market conditions for the most optimal strategy. If there is a massive outflow from Compound and into Curve, then YEARN will follow.
YEARN does not have a single point of failure. It goes wherever the best returns are.
Getting started in DeFi is hard!
Step 1: Onboard from fiat, learn how to use Metamask, connect it to Uniswap, add liquidity to pools on Curve, and then stake your tokens to earn more tokens, while knowing the terminology and calculating for risk and impermanent loss.
If you make it past step 1, then you fall headfirst into the brick wall...
What do you do?
Where do you farm?
How do you find your advantage?
One can only spend so much time searching for alpha scrolling through discord, telegram and twitter before you lose your mind.
Finding the right opportunities is infinitely more challenging than just getting started in DeFi.
And getting started was already hard enough.
Let's just look at the yCRV vault as an example:
It goes without saying that the level of expertise and capital required to develop and then profitably execute a strategy like this is beyond the reach of most individuals.
Plus if you select 100 people at random, you'd be challenged to find more than a one or two who would even want to understand what's happening even if you paid them.
For DeFi to grow, it needs to be easy and accessible.
This is one of the core value propositions of YEARN.
As more money and more users begin to flow into the space, they'll instantly be attracted to YEARN due to the low fees, ease of use and access to the best performing strategies.
Not everyone wants to be a yield farmer and rotate their crops. Especially not the next wave.
We expect that when an insurance component is added, capital inflows will ramp up significantly.
YEARN is democratizing DeFi by making it easy, accessible and affordable for everyone in the world to earn a return on their cryptocurrency.
As DeFi continues to grow, the number of users and total value locked in YEARN will grow with it.
Users + capital is what will allow YEARN to EAT CeFi.
The idea that YEARN is like a credit union was originally created and shared by (@mattdwest).
We agree and have tried to define it as follows.
YEARN is a member-owned decentralized cooperative, controlled by its members ($YFI holders) and operated on the principle of people helping people, providing its members credit at competitive rates as well as other financial services.
Credit unions are not-for-profit organizations, meaning they must serve their members ($YFI holders) rather than maximize profits.
Not-for-profit means they must keep a small surplus to remain in existence and fund certain activities (team hiring, security audits, UI upgrades, etc).
YEARN offers a suite of financial products:
The only difference is these products products can be used by anyone whether they are a member ($YFI holder) or a member of the general public.
Everyone ($YFI holder or user) pays a fee when using the products with a portion being re-distributed back to members and YEARN (the not-for-profit).
This is the framework we use to think about YEARN.
We believe YEARN’s potential is expanding into what we’re calling a VENTURE-CREDIT-UNION.
Historically retail investors have been restricted from investing in the best cryptocurrency startups.
Compound is a for profit entity founded in 2017. Over multiple funding rounds from some of the top VC firms in Silicon Valley they raised a total of $33.2mm. Compound and its team are legally bound to provide a return for their investors before anything else.
ETH Lite: Reflexer Labs Raises $1.7M to Build a Somewhat-Stable Coin for DeFi, with investments from Paradigm, Standard Crypto, Robert Leshner (Compound founder) and Variant Fund.
YEARN can disrupt this model entirely.
This idea was inspired by a thread created by (@iam_vance)
Current yVault strategies are designed to farm the highest yield using the most optimum strategy available.
1.) strategies can be submitted by anyone
2.) Strategies are voted on / determined through governance
In the future YEARN vaults should become the default funding mechanism (angel, seed, loans, etc) for the next wave of DeFi startups.
This way new entrepreneurs in search of capital can take investments from DeFi directly and circumvent CeFi entirely.
Instead of concentrated ownership in a new protocol by a few venture capitalists and investment groups, tokens could be distributed to members of a yVault. Thereby transferring wealth from the hands of few to the hands of many around the world.
If this were to occur the value of the $YFI token would appreciate rapidly, well beyond the 1 $YFI = 1 $BTC narrative.
Legacy players (funds, protocols, etc) who want to direct capital from YEARN yVAULTS, will need to own $YFI to be able to vote in governance.
YEARN Vaults as a funding mechanism completely flips the power dynamic upside down.
Instead of everyday people having to buy in at a price 10x what the VC paid, they will have to purchase at 20x what we paid.
Soon everyone in the world no matter where they stand financially, who they know or what they don’t know will have completely fair and open access to the best DeFi strategies, investments and other financial products through YEARN.
This is why DeFi was started.
Oh my... $YFI.