1/ $YFI Hysteria Clearly Explained Mega Thread
If you don't understand YFI then I'd encourage you to read this thread & our July 5FA research report which I'll link below. It's actually very easy to understand, so here it goes!

2/ Most beginners hear about staking, yield farming, rewards & these highs APY (Annual % Yield) & think to themselves "this is all too hard". In reality if you take the time to learn how to send tokens from one address to another, you're 90% of the way there!

3/ The hard part comes from knowing what tokens to pick & where to put them to get the best return! This is where YFI & Yearn Finance come in.

Yearn Finance is a protocol that simply finds the best yield for whatever token you have, automatically.

4/ All you have to do is deposit your coins into their system.

If I have some USDT stable coin, I deposit USDT, it will give me "y" tokens in return, ie yUSDT. Hence the name Yearn Finance, "yEarn" Finance. But this is only the beginning...

5/ Andre the creator was a true libertarian. He created this system along with the YFI governance token. Token holders get to make decisions about what to do. He took no tokens for himself. Supply actually started at 0. 30,000 coins could be "farmed" as rewards for using the

6/ system when it was launched to build liquidity & trust.

BTC has 18M coins. YFI has 30k coins. If YFI had as many coins as Bitcoin, price would be $50. People wouldn't have their knickers in a knot. But the herd don't understand simple concepts like market cap.

7/ They are busy watching "best coins under $1" videos from Youtubers who also don't understand the basics.

The herd & media will continue shouting "scam", "who would pay $30k for a coin". The same thing they say about Bitcoin. If they don't understand market cap,

8/ I doubt they understand fractions or decimal places.

Another cool feature of this protocol is how the system automatically reallocates ALL coins of the same type in one transaction. If 1000 people have all deposited USDT to earn yield, when the protocol moves them from

9/ Compound to Uniswap, usually they may expect to pay a Tx cost of $100 in ETH Gas fees as it is a complex smart contract with many moving pieces. Yearn groups them together, splits the cost (5% each) & does it in one Tx. Happy days!

10/ Now comes the real kicker! Users pay 0.5% management fee when withdrawing. This goes to YFI token holders. Currently YFI has $1B in TVL (Total Value Locked).

I think the stat is TSLA has a P/E ratio of 10000. YFI has a P/E ratio of 10.

11/ This is just from the "yVault" product I've described, not even all the other products they offer. As I shared recently they've teamed up with Nexus Mutual to offer insurance on DeFi products.

But the new product that has me excited & even more bullish on ETH, is yETH.

12/ This adds to a long list of catalysts for Ethereum, but it also reduces the available supply. Anyone who owns ETH can earn the best yield automatically by HODLing yETH.

It could also mean other protocols find it harder to compete with Ethereum when offering staking rewards.

13/ Very excited to see what the genius creator of this protocol has in store for us next. Token holders vote, he builds. Anyone can contribute. I hope this has given you a better understanding of what all the hysteria has been about of late.

14/ You can see why we covered Yearn Finance & YFI token in July's 5FA research report. Expect the herd, noobs, nocoiners & maximalists to keep yelling at YFI as they fail to grasp the above concepts I've described.

15/ As always, knowledge is power, we'll continue to keep you two steps ahead of the herd & remember, good projects have good announcements...

yFight it.

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