YFI: How to Bake Money

in LeoFinance2 months ago

Recently in a Telegram group, I've got a note that "YIP-57 has passed" or similar. I don't know why I went to dig what that could mean. But I've found some rather interesting things. "YIP-57" was voting held at Yearn Finance on a proposal "to fund Yearn's future".

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It looks like the Yearn's future will be funded with YFI emission. Yearn Finance will bake 6666 more YFIs (+22% to the current 30K supply) out of thin air, with a few lines of code. The primary reason for that seems to be "we must pay the devs". Well, the devs will be paid indeed, and a hefty US$213M will be added to YFI's "market cap".

Anyway, looks like the community is quite happy with the novel, maybe because they were promised a buyback. Yesterday YFI's price went from about $31K to above $33K. Jolly good.

In the end let me do some math. The total number of the proposal's votes was 1670 YFI, which is about 5.6% of the total 30K supply. Looks like the yearners didn't bother with the voting that much. About 66% of those 1670 YFI were four big wallets, three of those (51% of 1670) voted "yes". Probably, that's how that "online governance" scheme is supposed to work.

I think if the yearners join forces with the wallstreetbetters and keep baking and pumping their token, they will be able to beat Mr. Buffet easily, just for fun.

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