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When YFI was launched, it debuted with no private placement, no pre-mining, and no team reservations. It exploded at the beginning and made a sensation in the DeFi ecosystem.
Today, YFI has started the merger, which can be described as turbulent. Five DeFi projects have been merged within a week, which is not unpleasant.
Most of the coins bought by Grayscale have a good upward trend; and most of the YFI merged project tokens also have a good upward trend, let’s talk about it below.
1. YFI’s merger journey
The merger of YFI came from a rescue. When Pickle suffered a serious lightning loan attack, it lost nearly 20 million U.S. dollars DAI, Pickle entered the “dark moment”, Yearn reached out to help Pickle a hand, AC published an article through Medium, announcing that Pickle and Year had completed the merger.
The merger of Pickle and Year is good for Pickle, and Yearn uses Pickle’s experience to promote community governance improvements.
Since then, YFI has started an out-of-control merging action and merged 4 projects in one breath.
1) On November 26, merge Cream
Cream is a mortgage lending platform forked from Compound. It is estimated that it has taken a fancy to the advantage of the Cream team in mortgage lending. Cream joined, bringing Yearn loan product development experience.
2) On November 28, merge Cover
Cover is deeply involved in the DeFi insurance field and has lofty ideals, but its development is not smooth. After the merger, Cover will provide security protection for the Year product series and the entire DeFi field, and Year can focus on Vault construction and provide users with low-risk products.
3) On November 30, merge with Akropolis
Akropolis aims to build a blockchain-based financial service platform that allows customers to quickly establish informal autonomous financial organizations (AFO), such as digital cooperatives, industry associations, and mutual aid organizations.
Akropolis will provide front-end agency services for Year’s products, provide customized access services for customer networks, and tailor investment strategies for customers.
4) On December 1, merge with SushiSwap
SushiSwap relied on the mining model to leverage uniswap’s liquidity pool, and the DEX developed thereby quickly caught up with uniswap in trading volume.
So far, Year has completed the merger with 5 DeFi projects, Pickle, Cream, Cover, Akropolis, and SushiSwap. It took only a week for this kind of DeFi project, which is efficient.
2. What is the merged YFI?
After the merger, YFI has the development capabilities of 5 tracks at the same time:
1) Mining: learn community governance mechanism from Pickle;
2) Lending: Cream reinforces the technical force in the field of lending;
3) Insurance: Cover provides better insurance services for products;
4) Front-end: Akropolis provides customers with high-quality front-end financial services;
5) DEX: DeriSwap, a new product launched with the assistance of SushiSwap.
In this regard, some people commented that YFI created a super-efficient robot.
For the creation of the DeFi ecosystem, some people in the country also want to do it. The domestic practice is to do everything by yourself. Borrowing, DEX, derivatives, etc., are all done by themselves. AC directly adopted the method of merger to create a DeFi ecological empire.
DeFi is like Lego bricks, with strong composability. This is also the basis for AC to find “building blocks” from different tracks in a short time to complete the assembly.
DeFi is like Lego bricks, it is highly composable, so why merge? Possible benefits:
As a result, the composability between DeFi protocols is external collaboration, and after the merger, internal collaboration will increase the efficiency of innovation iteration;
Secondly, the merger agreement can be customized and developed, which is more interactive and adaptable.
But as the DeFi ecosystem grows up, the number of ecological teams increases, and the drawbacks will also show up, such as:
As a result, there are problems in the operation of certain teams, and this “Lego building block” is not easy to disassemble. The related projects are linked together, which is likely to cause a chain reaction;
Secondly, after the formation of a monopoly, innovation is involved, reducing innovation capabilities, and hindering the pace of industry innovation.
3. What is missing in the merged YFI?
According to The DeFi Stack in “Multicoin helps you peel off the DeFi layers, the layers and associations are clearly visible, and the original is very simple”, as shown below.
There are 6 levels in The DEFI STACK, namely: 1. Atomic value unit; 2. Transaction layer; 3. Oracles; 4. DeF primitives; 5. Aggregation protocol; 6. Wallet and front end.
Corresponding to the ecology of YFI, in the ecology of YFI’s merger, there are currently two gaps, namely, the atomic value unit and the transaction layer. As for the oracle, KP3R is to build the oracle function. The transaction layer in The DEFI STACK refers to the public chain. Therefore, YFI is one atomic unit of value, which is an asset.
If YFI merges the DeFi of another asset, it will be more complete, directly from the bottom to the previous one-stop service.
4. YFI ecological currency, worthy of attention
How did the project tokens merged with YFI perform? coingecko made a page of YFI’s integrated ecological project, as shown below.
YFI brought a lot of projects to work together. As the saying goes, there are many people and power, what will YFI do? There should be many opportunities for how to do it and the relationship with ecological projects. Pay more attention to the performance and laws of YFI ecological project tokens, and there may be unexpected gains.
DEFI is recovering rapidly, Aave has reached a record high, YFI is also regaining lost ground, and AMPL’s inflation is accelerating. The bright future of DEFI is approaching.