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Although the total lock-up volume has dropped by 50%, YFI continues to innovate, educate, and execute at an alarming rate.
Original title: “Hot Spot丨 How will YFI achieve its DeFi dominance step by step? 》
Written by: Lou Kerner
On September 20th, I published the article ” Yearn is the future of DeFi, and DeFi is the future of finance “. Wrote in the article:
The pace of life is so fast, if you don’t stop and take a look occasionally, you might miss it.
The world has never seen an industry whose development speed can reach the level of DeFi . The reason why DeFi innovation can develop at the fastest speed is that DeFi can be combined, which means you can learn from others’ innovations, just like Lego, combine it with other codes, and you get Something brand new.
“I test in prod” Andre Cronje, Yearn founder.
For more than 3 years, I have been doing 24/7 encryption work, and Yearn is the most interesting and developing project I have ever seen.
If you are not familiar with Yearn, then this article can help you get started. This is the second part of my in-depth understanding of Year.
The second part covers the 70-day changes since that article. During these 70 days, Year has continued to innovate, educate, and execute at an amazing speed. Here are some highlights from Year in the past 70 days:
The total lock-up volume has been reduced by 53%
The total lock-up volume is the most concerned indicator of the market, so the phenomenon that Yearn’s total lock-up volume has plummeted by 50% is worrying. However, the reason for the decline in the total lock-up volume is understandable, because the DeFi ecosystem that Year is building will only grow in scope and scale .
There are many reasons for the decline, including the attack on Eminence on September 29. As a project led by Year’s founder Andre Cronje, the use of Eminence and many other DeFi projects has an impact on all DeFi, but it has a greater impact on Year.
Another factor is the launch of Ethereum 2.0, which absorbed more than 850,000 ETH, which was pledged as part of the launch. These ETHs come from somewhere, including Yearn and other DeFi projects. In the past two weeks, the amount of ETH locked in these projects has decreased by 2 million.
The price has been fluctuating at a high level. Today’s price is above $25,000, which is more than 3 times the low of November 5
Basically no one in the world knows what Year is, let alone how it will develop . Therefore, it is not surprising that the world does not know how to price Year.
Cronje announces the Keep3r network, a coordinated network that ensures proper maintenance of projects
At present, every DeFi project is responsible for finding talents (or “Keepers”) to maintain various parameters of its agreement (for example, call update() on Oracle to update its basic value, and call harvest() strategically to withdraw funds ).
Cronje announced on October 22 that keep3r provides a single source for the project to access approved Keepers. Keep3r is an independent project, not directly affiliated with Year, but will help Year and the entire DeFi ecosystem .
Keep3r will review and approve each bonded Keeper before starting to execute the contract.
Projects that require Keeper to perform specific actions only need to submit a contract to the Keep3r network, and the approved Keeper can execute the contract. Keeper can receive rewards directly through ETH and/or project tokens, or indirectly through liquidity.
Keep3r network can also create a series of DA pp that could not be achieved before. Three new DApps will be launched as part of the Keep3r network, including MetaWallet, which is a smart contract that can transfer ETH and others without actually submitting transactions or spending gas yourself.
Yearn announces “merger” with Pickle
On November 24, Cronje announced: “The Pickle and Year development teams have designed a structure that allows the two projects to work together in a symbiotic manner.”
Just a few days ago, Pickle was attacked and the $20 million Dai was snatched from his Jars (also known as the vault).
This merger brings Pickle into Year’s ecosystem, including security expertise, while Pickle contributes its developer talent and total lock-up (by merging its treasury). In DeFi’s first rescue, a new Token CORNICHON will be distributed proportionally to the victims of the Pickle attack. Pickle and Year will continue to maintain their own independent brands .
Yearn announces “merger” with Cream
On November 26, Cronje announced the merger with the development team of Cream v2, which is an agreement that can achieve yield farming leverage.
Synergies include promoting reserve services between agreements, enabling agreements such as Aave or Compound to effectively obtain additional capital.
Cream will also become the Launchpad of Stable Credit, a highly ambitious project of Year that aims to create a single agreement for decentralized loans, AMM and stablecoins.
Yearn announces “merger” with Cover
On November 28, just 10 days after Cover was launched, Cronje announced its merger with Cover. Cover is an agreement that allows users to forge, redeem, and purchase insurance to prevent smart contract risks. Cover’s longer-term vision is to allow anyone to buy insurance for anything.
Since the launch of yInsure in cooperation with Nexus Mutual on August 31, providing insurance has been an important initiative of Year. At the same time, “yInsurance” will now be taken over by Armor of Nexus.
The merger with Cover allows YFI to protect the ecosystem for itself, allowing YFI’s vault to obtain more protection from the rate of return to hedging risks, and without any upfront user costs .
Yearn announces “merger” with Akropolis
On November 30, Year announced the merger of development resources with Akropolis. Akropolis will become the front office service provider for Yearns Vault and Lending protocol solutions.
Yearn will gain access to the investment strategies created by Akropolis and their business development expertise, as well as access to Akropolis’ institutional clients.
Similarly, Akropolis will also get the opportunity to enter the Year network, provide customized services to Year’s institutional clients, and tailor investment strategies for them.
Yearn announces “merger” with SushiSwap
On December 1, Andre announced the merger with Sushiswap. Sushiswap is a high-profile fork of AMM Uniswap. The reason for its fame is to draw users from Uniswap through the incentive structure of “innovation” (or vampire-like), which is the first place in the migration. Tian has brought Sushiswap a total lock-up volume of more than $1 billion.
Andre described the merger as “…a more radical synergy, so some core projects have to be voted on by the governance layer”, and the past merger decisions were made by Andre himself. At the same time Andre emphasized the need to develop customized AMM experiences, and Sushi is preparing to provide these experiences.
Andre discussed the naming of “merger”
Cronje published an article on November 30, clarifying his views on the recent YFI “merger” activity. He acknowledged that these activities cannot be clearly described in any existing financial industry terms (such as mergers, acquisitions, partnerships, or cooperation). He said at the end of the article
DeFi allows us to cooperate and coexist, and at the same time become individuals. I don’t know what we should call it, but I am very excited about this model.
I am also very excited about DeFi, especially Year. It only locks up to 450 million U.S. dollars and only 0.02% of its total assets are listed on the market. The top ten traditional financial service companies of the same kind have assets as follows:
Ranking of the world’s largest financial services companies by assets
But the transformation of traditional finance has just begun, and we still don’t know what will happen in the traditional financial world.