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1/ Alright, it's official. I've been on @DegenSpartan's side re: YFI, but now I'm on @ChainLinkGod'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
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
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'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'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'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'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...
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.
