The second uncle of the currency circle (YFII), why did it collapse?

Don't Cut Me Original Series Issue 4

Hello everyone

It's time for a new series of "Don't Cut Me"

Recently, housing prices have fallen, and B prices have fallen, and they have fallen endlessly

But my little leek, still cut but still strong

Before doing the "Don't Cut Me" series

I clearly know that there are many pitfalls in the currency circle

But when you study carefully

You just know that pits are everywhere

In the past, we looked at whether a project was good or bad.

We will consider the project prospect and look at the roadmap of the project party

Even the endorsement of the project party, qualifications, etc.

But after all these years, I hope you all

can learn to think independently

Don't easily believe what others say

Including the project party and me

Looking at YFII from the data

The black lacquered pillar is also very infiltrating

On May 25th, on the same day, it plummeted by 70% within 20 minutes

Dry directly from 1200+U to 330+U

I've never seen such a fierce pull

But it's really hard to smash

It makes people wonder if it will be the next LUNA

This is not the case, the mechanism of YFII is different from that of LUNA

The total amount of YFII is 40,000

Whether it's down to 300 or down to 30

Any big family can eat it

Take a step back, even if you can't eat it, but at this level

In the end, there will be an exchange to control the market

Old rules, let’s talk about this YFII first

The currency circle calls it the second uncle, what is it like?

In a word, DFI.money (YFII) is a fork agreement of Yearn.Finance (YFI).

The simple principle is that YFI stopped mining as early as 2020, but in order to ensure liquidity, not to mention that these people are not good, but they are very flexible, and put forward a proposal for additional issuance, and each mining pool will issue additional issuance every week The amount is halved. There are often no accidents, and accidents will appear. Although the proposal is approved by the majority of people, the total voting rate is only about 8% and it is defeated.

Failure is not terrible, but as long as you operate Sao, there is a way. No, in order to ensure that this idea can be implemented, the Yearn.Finance project was forked mainly by the Chinese community and operated independently, and finally became YFII.

Here is an interesting episode, you thought it was only forked to the second uncle (YFII), in fact, people have already forked projects such as YFIII and YFV, but they didn't get up.

So YFII will be like his brother, gradually fading away from everyone? Next, I will take you to look at these questions, and you will know.

Compared with the peak TVL, it is close to zero

According to DeFiPulse data, DFI.Money (YFII) peak lock-up volume (TVL) exceeded 56 million US dollars, and then fell sharply. As of today, the current TVL of YFII is only about 100,000 US dollars. Compared with the peak period, this point is basically zero now.

At present, there are many coins similar to YFII in the market, but they are gradually dying and disappearing from everyone. But why is it still on the exchange? This question is actually very simple, that is, there will never be a shortage of new leeks entering the market. Take YFII as an example, according to CoinMarketCap, its current market capitalization is just over 10 million, but its holdings are less than 110,000, and its protocol fees are even negligible. But because it is still in its exchange, there are fresh chives, and it is still being purchased, so it is half dead.

We need to know that in April this year, Binance delisted the YFII/USDT margin contract. In May, the YFII/BUSD trading pair was removed. What this information reveals, even if you are a little leek, you should know it.

fewer people to discuss

It can also be seen from the index that the search volume of YFII is gradually decreasing, which is not a good thing for a project. Back then, in August 2020, his brother YFI was at the peak price, even surpassing Bitcoin. At that time, the media had overwhelming publicity, and then experienced the bifurcation of YFII, and the volume was not small.

Capital doesn't care whether your project is good or bad, he sees whether you have traffic, popularity, and interest. But not all investors are stupid. When YFII first came out, some people questioned that this is a small fund with little value. Moreover, most of the income is still concentrated in the hands of large investors, while small retail investors are playing in the secondary market. So for the brothers who hold YFII, I would like to give you a word, be careful, don't be a taker.

The structure of the project party is small

In fact, there are a lot of rumors on the Internet about the reasons for this crash, and they can say anything, such as

1. The project party used the association of LUNA's plunge, and then guided everyone to short, and finally harvested long orders.
2. The project party judges that it has entered a bear market, so it hasten to get a sum of money back.
3. Some people also said that the project party ran away and so on.

But the one that circulated the most was the picture above, in which the team shipped their own goods and sold them to pay wages for employees. Subsequently, YFII developer Gao Shifu (Gao Jin) posted on social media that YFII was not attacked, nor was it issued additionally, nor was it used to pay wages. No (additional issuance authority), and there is no way to issue Tokens to yourself; the team did have more than 50 YFIIs and a few ETHs before, YFIIs were repurchased, ETH was sold when uniswap airdropped UNI, and all operation records are in the chain. superior.

We don’t care what the final reason is, but according to the situation on the Internet, the YFII team did smash a wave, but only cashed out 400,000 US dollars. The project party estimated the market’s tolerance, and it crashed directly. But no matter what the specific situation is, the project party ends up shipping for a few hundred thousand, and the pattern is there.

write at the end

When we lose faith in the currency circle and pay too much attention to prices, I sincerely hope that everyone will carefully and seriously reread the white paper of Dabing and Auntie, and regain the lost faith in the currency circle. I hope that at that time, you will no longer pay too much attention to the price, but the future of the industry. To put it bluntly, Dabing and Auntie can be called great products in financial history. Because when you fully understand how great changes Dabing and Auntie have brought to the traditional financial system, and how fertile soil they provide for the most popular DeFi, Web3, Metaverse and other tracks. At that time, you will understand that you should study hard and seize every opportunity to make money in the future as much as possible, instead of missing the opportunity due to hesitation and ignorance of the industry prospects. Investing isn't easy, but it's not that hard either.

The above views represent the views of the author only, not the views of the platform. Investment is risky, please invest carefully!