Read on Twitter
1/ Alright, it& #39;s official. I& #39;ve been on @DegenSpartan& #39;s side re: YFI, but now I& #39;m on @ChainLinkGod& #39;s side.
YFI vaults are the automation process normies crave. One of the biggest hurdles for SNX right now is the *insane* gas fees. https://twitter.com/AndreCronjeTech/status/1290276713146982403">https://twitter.com/AndreCron...
YFI vaults are the automation process normies crave. One of the biggest hurdles for SNX right now is the *insane* gas fees. https://twitter.com/AndreCronjeTech/status/1290276713146982403">https://twitter.com/AndreCron...
2/ At this time, minting $300 sUSD costs over $2k in SNX and $20 in gas fees at 45 gwei. With the frequency that gas hits over 80 gwei now, we& #39;re talking double that amount. And this is just to stake any amount of SNX, be it $200 or $20,000.
3/ Then, each week, you get to burn about another $10+ in gas fees to claim your staked SNX. God forbid your collateralization ratio drops below 750% - now you get to spend gas to burn sUSD (though right now it& #39;s usually just better to buy more SNX)
4/ SNX has immense potential, but the high gas costs right now are completely wrecking the gains of the folks with under $10k in SNX right now. It& #39;s just not worth it to stake and burn all that gas. This hinders the adoption of the token, and also the health of the platform.
5/ Enter yearn vaults. Now folks can drop as much as $100 of SNX into a vault to split the gas fees with everyone else in the pool. SNX adoption goes up, the amount of staked SNX goes up, price goes up.
Side effect: YFI also gets more visibility.
Side effect: YFI also gets more visibility.
6/ @iearnfinance is essentially building a DeFi credit union with semi-active money managers. Owned by the members, and profits are divided accordingly. Depositors get paid, the underlying platforms get paid, and the shareholders also get paid.
7/ So, that& #39;s it. YFI is building customer-centric automation platforms that will spurn the adoption of DeFi to the masses. Expect @argentHQ and other customer-friendly wallets to link it directly in their platforms.
The risk is still high, but the potential gains...
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The risk is still high, but the potential gains...
*Spur.
Always fun when your typo results in an antonym.
Always fun when your typo results in an antonym.
