Thread by @ChainLinkGod, Let's talk about the different wrapped versions of $LINKWith #DeFi composability, dApps [...]

Let's talk about the different wrapped versions of $LINK

With #DeFi composability, dApps can be plugged together like money Legos by tokenizing user deposits

There's so much being built using $LINK for both collateral and price feeds, but let's start from the beginning

First we had $iLINK, a wrapped interest bearing version of LINK on @bZxHQ Fulcrum

Then $sLINK, a synthetic form of LINK from @synthetix_io, overcollaterlized by $SNX

Confusingly there's also an $iLINK inverse synth from @synthetix_io, a short position, very different than bZx

Then we got $aLINK, a wrapped interesting bearing version of LINK on @AaveAave

It was just those for a while, but now we're seeing a new wave

$yLINK, which is an interest bearing version of LINK on @iearnfinance yVaults, but essentially it's a wrapper for $yaLINK

$yaLINK is created by depositing Aave's $aLINK into @iearnfinance

Yearn contracts use that $aLINK as collateral in a loan on @AaveAave to borrow stablecoins (USDC/DAI/USDT/TUSD)

Those stablecoins are then deposited into back into @iearnfinance yVaults to yield farm

The most profitable strategy for this is $CRV farming

So first the borrowed stablecoins are deposited into @CurveFinance Y pool to get $yCRV, a tokenized liquidity pool share of $DAI $USDC $USDT $TUSD

Curve is a stablecoin AMM DEX, you earn trading fees anytime the pool is used

But the magic doesn't stop there, the underlying stablecoins within the Y pool are then deposited back into @iearnfinance yVaults $yDAI $yUSDC $yUSDT $yTUSD to earn the best interest rates across DeFi

Usually those funds get lent on @AaveAave as $aDAI $sUSDC $sUSDT $yTUSD

$yCRV, the tokenized Y pool shares I described above is then be deposited on @CurveFinance to get $yyCRV which farms $CRV, the governance token of Curve

The $CRV is then sold for stablecoins when is then deposited back into the Y pool to compound returns for more $yCRV

Still following me so far?

Okay let's zoom back out to $yaLINK, the profits (AMM fees + lending interest + CRV farming) generated from $yCRV is used to market buy $LINK on Uniswap regularly, compounding returns

Essentially what this means is that you can deposit $LINK to yearn's $yaLINK and earn more $LINK over time from the best yield across DeFi

There is a 0.5% withdraw fee and a 5% fee on the profits, but at currently ~100% APY, this hardly matters in the long run

But again it doesn't stop here either, those yield earning $yaLINK tokens can then deposited in the food tokens like @SpaghettiMoney to earn $PASTA

Was this a long drawn out thread to shill you $PASTA? No, please don't buy it, just farm

The yield farming continues ad infinium

Yield Farming seems to be working well

Is it sustainable? Yes but not at this APY, that's bull market euphoria, but it is a good way to distribute tokens in a fair manner and bootstrap liquidity

It's basically a DeFi cheatcode for TVL at this point

Not all are audited however

Anyways enough rambling
I think you get the point

#DeFi is here to stay and it's being powered by $LINK (Synthetix, Aave, Yearn, etc all use chainlink oracles)

Don't forget to take profits if you're yield farming, you may regret it like $YFI or may not like $YAM, time will tell

Lastly there is $wLINK, a blockchain agnostic version of LINK

By depositing the Ethereum-based $LINK token into a smart contract, you can mint a 1:1 representation on another blockchain ( @Polkadot @Cosmos etc)

You can then burn $wLINK to get the original $LINK on Ethereum back

In summary,
$LINK ( @chainlink)
$iLINK ( @bZxHQ)
$sLINK ( @synthetix_io)
$iLINK ( @synthetix_io)
$aLINK ( @AaveAave)
$yLINK ( @iearnfinance)
$yaLINK ( @iearnfinance + @AaveAave)
$wLINK ( @chainlink)

This is only the beginning my frens, if I missed any version of LINK, pls let me know!

Small corrections to this thread

$yyCRV is tokenized deposit on yearn, not curve

You can't deposit $LINK directly to $yaLINK, you need to get $aLINK from Aave first

The $yaLINK fees is 0.5% on withdraws and 5% of the gas spent by Andre to buy LINK, not 5% of the profits

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