Editors Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.
Editors Note: This article comes from
Chatting with Xiaozha (ID: xiaonazha88)
, reprinted by Odaily with authorization.
When YFI was launched, it debuted with no private placement, no pre-mining, and no team reservation. It exploded at the beginning and caused a sensation in the DeFi ecosystem.
Now YFI has started the merger, which can be described as a rush. It has merged 5 DeFi projects within a week, which is not uncomfortably fast.
Most of the coins bought by Grayscale have a good upward trend; and most of the project tokens merged with YFI also have a good upward trend, let’s talk about it below.
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YFIs Merger Journey
The merger of YFI originated from a rescue. When Pickle encountered a serious flash loan attack, it lost nearly 20 million USD in DAI, and Pickle entered the darkest moment. Yearn extended a helping hand to Pickle. AC published an article through Medium, announcing the completion of the merger between Pickle and Yearn.
The merger of Pickle and Yearn is beneficial to Pickle, and Yearn uses Pickles experience to promote the improvement of community governance.
Since then, YFI has started an out-of-control merger action, merging 4 more projects in one breath.
1) On November 26, Cream was merged
Cream is a mortgage lending platform forked from Compound, and it is estimated that Cream team has taken advantage of mortgage lending. Cream joined to bring loan product development experience to Yearn.
2) On November 28, cover was merged
Cover is deeply involved in the field of DeFi insurance and has lofty ideals, but the development is not smooth. After the merger, Cover will provide security protection for the Yearn product series and the entire DeFi field. Yearn can focus on Vault construction and provide users with low-risk products.
3) On November 30, Akropolis was merged
Akropolis will provide front-end institutional services for Yearns products, provide customized access services to client networks, and tailor investment strategies for clients.
4) On December 1, merge SushiSwap
Relying on the mining model, SushiSwap leveraged uniswaps liquidity pool, and the DEX developed thus has a transaction volume that is about to catch up with uniswap.
So far, Yearn has completed the merger with Pickle, Cream, Cover, Akropolis, and SushiSwap, five DeFi projects. It only took a week, which is very efficient.
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What is the merged YFI?
After the merger, YFI has the development capabilities of five tracks:
1) Mining: learn community governance mechanism from Pickle;
2) Lending: Cream strengthens the technical force in the lending field;
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 has created an ultra-efficient robot.
For building a large DeFi ecosystem, some people in China also want to do the same. The domestic practice is to do everything by themselves, such as lending, DEX, derivatives, etc., all by themselves. And AC directly adopts the method of merger to build a DeFi ecological empire.
DeFi is like Lego building blocks, with strong composability, which is also the basis for AC to find building blocks from different tracks in a short period of time to complete the assembly.
DeFi is like Lego blocks, they are highly composable, so why merge them? Possible benefits:
Second, the merged protocols can be customized and developed, with stronger interactivity and adaptability.
But as the DeFi ecosystem grows, the number of ecological teams increases, and the disadvantages will also show up, such as:
For one thing, if there are problems in the operation of certain teams, it is not convenient to disassemble this Lego building block. The related projects are intertwined, which is easy to cause a chain reaction;
Second, after the formation of a monopoly, innovation will involve, the innovation ability will be reduced, and the pace of industry innovation will be hindered.
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According to The DeFi Stack in Multicoin helps you peel off the layers of DeFi, the layers and connections are clearly visible, and it turns out to be very simple, as shown in the figure below.
There are 6 levels in The DEFI STACK, namely: 1. Atomic value unit; 2. Transaction layer; 3. Oracle; 4. DeF primitive; 5. Aggregation protocol; 6. Wallet and front end.
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URL:https://www.coingecko.com/
YFI ecological currency, worthy of attention
How about the performance of the project tokens merged with YFI? coingecko made a page for the YFI merger ecological project, as shown below.
