0/ I have lost count of how many $YFI clones have blown up. Many are probably wondering why they couldn't replicate the $YFI magic when it looked so easy for $YFI. The factors I attribute $YFI's early success to are 1) differentiation; 2) founder; 3) community and 4) investors.

1/ When $YFI first emerged, it was the first fair-mined DeFi coin which offered a crazy high yield (~1000%). This was unprecedented at the time. Subsequent iterations of $YFI didn't offer any real differentiation, and the fact so many sprang up was dilutive to all but the first.

2/ When I look at an early stage investment, I focus alot on the founder's track record and motivation. Andre Conje is a known name in crypto harking back to the 2017 ICO boom when he did countless code reviews for the benefit of the community for no financial benefit.

3/ His decision not to take a founder's reward with $YFI when he could easily and justifiably have done so speaks volumes about his motivation (hint: not money). Beware of founders with dubious track records and motivations.

4/ The organic community that sprang up around $YFI was encouraging to see. While many obviously came just for the yield, others have a longer term interest to see the project evolve and are contributing their time to help $YFI succeed. Importantly the community is also global.

5/ Very early on, $YFI caught the interest of a number of DeFi-focused funds, which is a good sign of validation. Also, if funds are willing to build a sizable position in a relatively illiquid token, it means they have a longer term agenda.