A lot of craziness around $SAFE and $NXM / $wNXM. $SAFE is a governance token currently governing nothing. There's no protocol or anything, just a promise of more to come. It's being called "the $YFI of insurance". But is it really?

The goal of $SAFE is to incentivize people to buy $wNXM (which indirectly incentivizes KYC members to buy NXM to stake on covers). This is all cool and nice, but here's something that doesn't sit too well with me...

Whales have been buying covers that are not normally available on the yInsure UI, then staking them on pools 1 and 2, effectively monopolizing the farming of $SAFE. There are no more yNFT insurance to be bought now, so many are re-selling at 10x the price on $RARI (Rarible)

This "mistake" has been "unfortunate", as described by the $SAFE creator. What this means thought is that a few whales are farming all the $SAFE, concentrating voting power in just a couple of hands. What's going to happen now? https://twitter.com/chefinsurance/status/1305299588690202624?s=20

A few whales will have majority voting power when $SAFE protocols are released. In my opinion, we might see a repeat of the $CRV fiasco, where admins had 70% voting power. In this case it might even be worse, with a few whales having the majority of the power.

Overall, it is indeed "unfortunate" that this happened. Otherwise this might have been a great project. There is money to be made, but any comparison with $YFI is from people wanting to pump their bags. Don't trust them. I will personally be watching from the sidelines.