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Token YFI


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I was buying https://www.coingecko.com/en/coins/yearn-finance when its price was $900 on July 18th.

 

Today I have added lot more. It went as high as $42,000. But today I added lot more.

 

One of the best value investments, as it has a price-to-earnings ratio of 3.

 

If anyone wants to read the full analysis, it is posted here: https://www.mechanism.capital/yfi-frameworks-for-fundamental-valuation/

 

I can see YFI token price beat the price of Berkshire Hathaway A shares.

 

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I was buying https://www.coingecko.com/en/coins/yearn-finance when its price was $900 on July 18th.

 

Today I have added lot more. It went as high as $42,000. But today I added lot more.

 

One of the best value investments, as it has a price-to-earnings ratio of 3.

 

If anyone wants to read the full analysis, it is posted here: https://www.mechanism.capital/yfi-frameworks-for-fundamental-valuation/

 

I can see YFI token price beat the price of Berkshire Hathaway A shares.

 

In what capacity are you associated with "Mechanism Capital" ?

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I was in the same boat as you when Andre released the tokens. I bought as much as I could. While I like the model, the earnings aren't exactly stable. Most of the TVL build up was the result of unsustainable yields on over inflated defi valuations. I sold everything on the run up around $30k.

 

The thing that stood out during the defi mini bubble, zero effort anon forks was able to siphon quite a bit of value. Imagine what focused efforts with VC funding can accomplish.

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I was in the same boat as you when Andre released the tokens. I bought as much as I could. While I like the model, the earnings aren't exactly stable. Most of the TVL build up was the result of unsustainable yields on over inflated defi valuations. I sold everything on the run up around $30k.

 

The thing that stood out during the defi mini bubble, zero effort anon forks was able to siphon quite a bit of value. Imagine what focused efforts with VC funding can accomplish.

 

That is an interesting take. what other tokens do you like now? YFI is planning to release their V2 contracts in short time. I am thinking that is a massive game changer

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There's demand for stable coins in crypto for leverage/trading and other purposes. As a result yields are hovering around 5%-15% depending on the platform and liquidity is spread out. The yields are juiced up if the platform is offering a separate token on top for governance for providing liquidity.

 

YFI builds out vaults (smart contracts) that allocates users stable coins to the best yield opportunities in the space automatically so users don't have to keep track of dozens of platforms and juggle their assets. YFI takes a cut for providing this service and that's how the cash flows are generated.

 

What I want to highlight is in the crypto space a single person can write a few lines of code and start generating $50k a day in fees really fast if they find product market fit. How many other industries gives you this kind of opportunity? We are barely seeing the tip of the iceberg in terms of what can be done in this space.

 

I read the write up and I don't get it. What is the business?

 

It seems like they get income from other tokens (both 5%  yearly “maintenance”) and 0.5% withdrawal fees. This sounds like a frocking expensive checking account for users to me.

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After I unloaded all my defi positions during the mini bubble I'm only holding BTC.

 

I think the bullish trend in BTC, regulatory crackdown on exchanges and period of disillusionment occurring in Defi makes this sector untouchable for the foreseeable future. When I got into defi projects the valuations for Aave, SNX and others were 10mm-30mm. Even after the massive drawdowns they are hovering around 300-500mm. I think there's still more pain ahead.

 

That is an interesting take. what other tokens do you like now? YFI is planning to release their V2 contracts in short time. I am thinking that is a massive game changer

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There's demand for stable coins in crypto for leverage/trading and other purposes. As a result yields are hovering around 5%-15% depending on the platform and liquidity is spread out. The yields are juiced up if the platform is offering a separate token on top for governance for providing liquidity.

 

YFI builds out vaults (smart contracts) that allocates users stable coins to the best yield opportunities in the space automatically so users don't have to keep track of dozens of platforms and juggle their assets. YFI takes a cut for providing this service and that's how the cash flows are generated.

 

What I want to highlight is in the crypto space a single person can write a few lines of code and start generating $50k a day in fees really fast if they find product market fit. How many other industries gives you this kind of opportunity? We are barely seeing the tip of the iceberg in terms of what can be done in this space.

 

I read the write up and I don't get it. What is the business?

 

It seems like they get income from other tokens (both 5%  yearly “maintenance”) and 0.5% withdrawal fees. This sounds like a frocking expensive checking account for users to me.

 

Thank you for the explanation. So it seems more like participating in arbitrage than In a crypto checking account via this token. Then the question really is why do those opportunities exist and how likely they exist in the future, because if you put a PE ratio as a valuation mark, you do assume that there will be cash flows in the future.

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Yes it's a form of arbitrage, but also understand the middleman is literally cut out thus you are witnessing the "true" yields that would be possible in traditional markets if regulations/rent seekers were eliminated. When you look at BlockFi, Nexo and others that are the centralized regulated version of defi on Ethereum their yields are half of that of defi.

 

Thank you for the explanation. So it seems more like participating in arbitrage than In a crypto checking account via this token. Then the question really is why do those opportunities exist and how likely they exist in the future, because if you put a PE ratio as a valuation mark, you do assume that there will be cash flows in the future.

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There's demand for stable coins in crypto for leverage/trading and other purposes. As a result yields are hovering around 5%-15% depending on the platform and liquidity is spread out. The yields are juiced up if the platform is offering a separate token on top for governance for providing liquidity.

 

YFI builds out vaults (smart contracts) that allocates users stable coins to the best yield opportunities in the space automatically so users don't have to keep track of dozens of platforms and juggle their assets. YFI takes a cut for providing this service and that's how the cash flows are generated.

 

What I want to highlight is in the crypto space a single person can write a few lines of code and start generating $50k a day in fees really fast if they find product market fit. How many other industries gives you this kind of opportunity? We are barely seeing the tip of the iceberg in terms of what can be done in this space.

 

I read the write up and I don't get it. What is the business?

 

It seems like they get income from other tokens (both 5%  yearly “maintenance”) and 0.5% withdrawal fees. This sounds like a frocking expensive checking account for users to me.

 

Thank you for the explanation. So it seems more like participating in arbitrage than In a crypto checking account via this token. Then the question really is why do those opportunities exist and how likely they exist in the future, because if you put a PE ratio as a valuation mark, you do assume that there will be cash flows in the future.

 

Actually that was the old model. There is vote that is going to turn this into a 2 and 20 fund. It is a community-run hedge fund. It is trustless. So their fees will grow dramatically from where they are.

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