Let us put beliefs on both sides, interests in the middle, and analyze the core of the year-financial management strategy.
Written by: Lin Ming
The recent repurchase of the Yearn team has given the market a boost, and V2 has given the market expectations, but the October year is no longer the August year. At that time, the thunderous gathering of reasonable wealth kings swept the DeFi circle with rapid innovation. , But looking back two months later, I have entered a mid-life crisis.
Let us put beliefs on both sides, interests in the middle, and analyze the core of the year-financial management strategy.
The core of gathering reasonable wealth is the strategy. Whether the strategy is optimal determines the profit, and the profit determines the size of the mining pool. So what is the core Vault strategy in yearn? In fact, there are only two kinds, digging crv or df, how high is the profit?
It can be seen that the core strategy of yearn only relies on two projects , CRV and DF , and the rate of return is all less than 10%. What about yearn’s fees? Divided into two parts, five-thousandths of the principal and 5% of the income. It is understandable to use 5% of the income as the gas fee. We can remove it as a reasonable cost. Calculated by gold, if the deposit period is one month, then it takes 6% years to pay the fee. If you deposit eth and alink, then alink needs about 10 years to pay the handling fee, and eth also needs The handling fee that can be paid in about 8 months has no advantage at all. The dai with the highest profit, deducting the handling fee, might as well directly deposit to comp or aave. V1 has no advantage.
So let’s take a look at the strategy of v2. There are two questions here. What is the core of V2? How long is V2? How high is the profit?
The core of V2 is YETH. Yearn has two core assets, yeth and yusd. Yusd’s ambition is to be a substitute for the highest financial income of the usd stable currency. Yeth’s ambition is a substitute for yeth. Currently, the amount of yusd is About 190 million, the amount of yeth is 98,000. Yeth’s peak was 320,000, revenue declined and many funds were lost.
How long will V2 open? The original official estimate for yeth is late September, but due to security issues, it has been optimized repeatedly. The current time given is 1-3 weeks, which is mid-October, but the specific time is still not guaranteed.
How high is the V2 revenue? The path of V2 was originally yearn-mkr-curve-yearn, but curve revenue plummeted, dai has pledge rate control, and it is difficult to achieve 10% revenue even if it is deposited. Even if the strategy of uni is connected, the dai pledge rate and Under the requirements of hedging assets, under uni’s current return rate of about 20%, yeth’s return is optimistically estimated at about 10%.
It can be seen that if the mining yields of curve and uni do not rise, yearn will hardly have a competitive advantage.
Let’s take a look at other items in the year. The insurance category only helped NXM and SAFE make wedding dresses, and wrapped NXM with a layer of NFT, but did not form its own vault.
Stablecoin is similar to flexible debt, but its usefulness is still questionable. How many people are willing to give up stable USD assets and accept deflationary and unstable assets?
Yearn still has AC, AC’s innovation power is still there, and there are a lot of great talents in research and development, but AC has lost its direction, and the technology of R&D personnel can’t keep up with the speed of AC. The project, yearn, has entered a mid-life crisis two months after its listing. According to the current team and project, YFI is obviously overvalued. Later, you must look at the revenue of the v2 version to reconfirm the value of YFI.
