Fork+YFI=?

in yfi •  4 years ago 

Content

Since YAM used the combination of AMPL+YFI, the trend in the encryption field has become more and more obvious in the recent period. Forked mature projects, endowed with YFI's mining distribution mechanism, quickly spawned a new popular project. The so-called integration here does not mean that the new agreement or product integrates all the YFI mechanisms, but just borrows its mechanism to detonate the community: there is no pre-mining, no investor share, only the distribution mechanism of liquid mining.

YAM is a combination of AMPL+YFI. YAM is the first project to show people the power of YFI+FORK. YAM forked AMPL and adopted YFI's token distribution and governance mechanism. Most of YAM's mechanism is to fork AMPL, which is also a flexible stable currency. According to the difference of the market price relative to its target price, additional issuance or reduction is carried out, while the proportion of holders remains unchanged. YAM also has its own characteristics, one of which is that it adds a new reserve pool, transfers 10% of the additional issuance to the reserve pool, and converts it into ycrv (stable currency with income). The purpose of the reserve pool is ultimately determined by the community. But it can give YAM room to take more measures. The most important part of YAM is the use of YFI’s distribution mechanism and community governance mechanism. All YAM is distributed through liquidity mining. Regarding all important governance decisions of YAM, governance decisions are made through community discussion and voting. This can be seen from the rescue of YAM and the migration from YAM V2 to V3. You can refer to the previous articles "YAM: A New Variation of AMPL", "YAM's Restart Road" and "YAM V3 is Coming". From this perspective, YAM is a very important stable currency practice in the future. Regardless of whether it succeeds in the future, it has won the support of the community and is an important part of the exploration of stable currency in the encryption field. Sushiswap is a combination of Uniswap+YFI. Sushiswap forked Uniswap and adopted YFI’s token distribution and governance mechanism. It is similar to the Trojan horse in Uniswap, which directly leverages the liquidity from Uniswap.

Unfortunately, a few days ago, one of the main developers of the team sold off his share of SUSHI in the founding team, which caused the market to plummet and caused dissatisfaction in the market. However, in the end, the founder passed his control over the community, which was the first difficulty. Sushiswap's biggest risk is not the founder, but whether it can successfully migrate the currently locked liquidity in the next two days. If the migration can be successful, even if it is only 20% of the original liquidity and liquidity of more than 200 million US dollars, then it has a chance to survive and develop. Don't underestimate the power of the community at any time. Regardless of what the future fate of Sushi is. Sushi's combination of Uniswap fork + YFI is a very clever way of playing in the encryption field. If it were not for the founder to sell SUSHI, this would become a very classic case. First of all, Sushiswap uses Uniswap's most important liquidity to provide liquidity for its future. If there is no liquidity, Sushiswap will not be competitive. On the one hand, it wants to leverage Uniswap's liquidity, and at the same time to win liquidity for itself, this is killing two birds with one stone. Not only won the initial liquidity for itself, but also hit Uniswap. Win the possibility for one's own competition.

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(The liquidity pool assets locked on Sushiswap used to be as high as 1.4 billion US dollars)

In addition, by constructing the ETH/SUSHI liquidity pool, SUSHI's price discovery was completed, which promoted the construction of the community foundation. At its peak, Sushiswap locked in more than 1.4 billion liquidity. In the liquidity of Uniswap tokens, sushi once topped the list.

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(Sushi's liquidity once topped the list at Uniswap, TheBlock)

Judging from this process, Sushiswap has been successful at least for a short period of time. From this perspective, the community is eager to have a DEX that is not controlled and driven by institutions, but a DEX that is completely driven by community governance. Here users not only have the expectation of profit, but also the expectation of the spirit of encryption. If Sushiswap can successfully leverage Uniswap's liquidity, then Sushiswap may become a pivotal project in the DEX field. Even if the migration liquidity of Sushiswap fails, projects or measures similar to Sushiswap will continue. The entire crypto community will not give up. Swerve is a combination of Curve+YFI. In addition to YAM's fork of AMPL, Sushiswap's fork of Uniswap, and Swerve's fork of Curve came a few days ago. So, is Curve+YFI= a better stablecoin DEX? Curve is a stable currency-based DEX. For details, please refer to the previous article on Curve in Blue Fox Notes. Curve is currently the second child of DEX and the boss is Uniswap. Curve went online in just three days, with locked assets of more than 400 million U.S. dollars and transaction volume reaching 4.1 million U.S. dollars. The current rate of return is not too high in the mining era, about 300%.

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(Swerve's liquidity exceeded US$400 million in three days)

Obviously, Swerve must have a diversion effect on Curve, and it is also a certain threat. Since its tokens are completely released through liquidity mining, and according to the current liquidity, the slippage of user transactions is not high, and there will be room for its survival and development in the future. The fork of the YFI deity and the YFI deity has been forked a lot, YFII, YFV...These forks are all on the way, and some have gradually formed their own community identity.

More FORK+YFI on the road. Who will be the combination of Maker+YFI? Who is the combination of Compound+YFI? Who is the combination of Synthetix+YFI? Who will be the combination of Nexus Mutual+YFI? Who is the combination of dydx+YFI? Who is the combination of Opyn+YFI? ......The era of bifurcation + liquidity mining and DAO governance will accelerate the emergence of various innovative projects. Although most project mining will be a bit of a feather, there will be very few projects that can stand out from the crowd. The DeFi landscape is about to change! ------Risk warning: All articles of Blue Fox Notes cannot be used as investment advice or recommendation. Investment is risky. Investment should consider personal risk tolerance. It is recommended to conduct an in-depth inspection of the project and make your own investment decisions carefully.

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