YFI launched the first M&A shot in the DeFi field, although it is not an M&A in the sense of the traditional financial market, it is more about the integration and interoperability of underlying development resources. YFI’s goals are also very clear, and they are all Fork-type DeFi projects. Although we usually look down on these Fork projects, we cannot deny that they do have their own micro-innovations and their own development resources.
For example, the core of the two systems, YFI and Pickle, the former is to build a machine gun pool around Curve, while the latter is to build a machine gun pool around Uniswap. Regardless of the fact that Pickle was stolen by hackers recently, its TVL can be maintained at $10M, which shows that it naturally has its advantages. These locked-up funds are not fools, on the contrary, they can be said to be the smartest batch of money.
YFI’s merger with Pickle is a horizontal merger, and both belong to the track of gathering resources. YFI’s merger with Cream is a vertical merger, and Cream is a lending track.
So far, the M&A (Mergers and Acquisitions) between blockchain projects has officially entered the public’s field of vision. YFI seems to have made a good start. The significance of this type of acquisition lies in the exchange of underlying development resources. At the same time, YFI is in DeFi. The position of leading stocks in the field has also been established and gradually strengthened.
An article about index tokens recently published by Messari is worth talking about.
The article began to use US stocks as an example. In September 2019, the share of passively managed funds in the US stock market exceeded that of actively managed funds, because more and more investors are beginning to realize that it is difficult for them to beat the market. Active investment is time-consuming and laborious, and the effort is often not proportional to the gain. Regardless of the stock and currency markets, I don’t know how many full-time investors are there, but in the end, how many people will get ashore successfully. But there is no one in a million, and one will accomplish all things.
We can clearly see that mergers between blockchain projects, index funds, and passive investments will be the future trends of the Crypto industry. The whole industry is moving closer to the trend of specialization and financialization.
Amber’s index tokens also have their own rudiments, exemplified by the DeFi index token DPI. The DPI index selects 10 DeFi component stocks and adjusts positions among the components once a month. The four DeFi projects with the largest proportion are: YFI/UNI/AAVE/SNX.
How to judge the leading stocks in the market. In fact, the index is a good indicator. Look at the core component stocks of the most mainstream index, basically the leading stocks. From the DPI index, we can also see that the three leading stocks in the DeFi field are YFI/UNI/AAVE.
Everything that happens in Amber is pointing to the traditional financial market.
Many amber bosses now have a long period of experience in the stock market before entering Amber. They applied the trading experience gained in the stock market to the early Amber and obtained the dividends of the times.
There are still many people who have been in contact with Amber at the beginning, and have not been in contact with the stock market, such as me. Because of the lack of trading experience, I suffered too much. Fortunately, I didn’t lose everything. I spent a few years in the circle, experienced 17 years of madness, 1819 despair, 20 years of turbulence, and changes in the entire industry. From the evolution of Amber, we can perceive how the financial market developed from barbaric growth to maturity.
If you can survive in Amber for a long time, even if you have not been in contact with the stock market, I believe you can still switch. Because the core of the two markets is the same. For example, many top investors in Amber often switch between the currency market and the stock market.
Fortunately, it still survives in this market. Since Amber stock marketization is a trend, there is no need to worry too much. Even in mature markets, there are many opportunities. A-shares of US stocks will still produce several 10-fold stocks every year. The market is cleaning only giant babies who want to lie down and win. Just do your own thing. Growing up with Amber in awe.
In a sense, witnessing history is more meaningful than making money.
