As we head towards late September, we see a significant cooldown on the profitability of Yield Farming. The days of 3 digital farms are gone, with yields now nearing ~50% APY for low-risk farms. Whilst some high yields still remain, the number of scams in the yield farming space has drastically increased. Overall, this is a healthier direction for the entire space.
Week in review
YFValue is evolving-but is it for the best?
YFValue will be going through a lot of changes in the coming few weeks. Here’s a summary:
- 15th September 2020 at 2:00pm UTC: Governance Vault (beta) opened and is intended to replace Staking Pool v2. It is supposedly an upgrade because the YFV staked in Governance Vault will now also be farming for yield. Profits would be used to buy back VALUE and distributed to stakers.
- 16th September 2020: YFValue’s new token VALUE deployed. The total supply of VALUE is capped at 3mil. A swap portal will soon be opened for holders to swap their YFV to VALUE.
- 18th September 2020: Value Liquid exchange will be launched. All liquidity from YFV pools will be automatically migrated from Balancer to Value Liquid. Balancer Pools will stop issuing YFV.
- 21st September 2020: Value Vaults will be available. Currently, it is known that after its release, 6.8% of profits from Value Vault’s strategies will be used to buy VALUE and distributed to Governance Vault Stakers. However, full details of what Value Vaults do are not announced yet.
- 2nd October 2020: Stablecoin seed pool’s double inflation rate will end.
Yieldfarming.insure- DeFi drama on x4 speed
Yieldfarming.insure ($SAFE) was only launched on 14th September 2020 and was all the buzz in various telegram groups. Shortly after launch on 15th September 2020, prices for $SAFE shot up to over USD$4,200 at its peak. However, the next day its developer “Chefinsurance” (“Chef”) published a lengthy message about the drama happening behind the scenes.
Turns out there was some conflict between Chef and “AzeemFi” (“Azeem”), apparently in investor into Yieldfarming.insure. According to Chef, Azeem insisted to deploy Pool 4 earlier than planned and eventually forced Chef to do so. Minutes after deployment, Azeem apparently realising he may be exposed to the risk of impermanent loss suddenly withdrew all his liquidity from Pool 4, essentially locking that pool and rendering it unusable. Azeem apparently then messaged community members to backstab and shift the blame for the issues on Pool 4 onto Chef. He also allegedly plans to oust Chef and was dumping his $SAFE tokens on the market.
Soon after Azeem issues his own reply that Chef is not truthful and posted message histories between himself and Chef. According to Azeem, he had only later discovered that Chef had created a clone farm and there was no actual product at all. Further, he insists he did not tank Yieldfarming.insure and instaed was trying to save it. Furthermore, the $SAFE tokens were according to Azeem “fairly farmed” by him and he had sold them to “take fairly farmed profits”.
Only 24 hours later and apparently Chef and Azeem have reconnected and are prepared to put aside their differences and reconcile.
From the latest update, it appears that Azeem would be stepping away from the project entirely. Meanwhile, Chef will be taking a break from his university studies and was given a grant of USD$25,000 and 5ETH from Andre Cronje and BlurKirby.eth to focus on the project.
The new project, known as COVER will be fully built from the ground up and will allow users to buy and sell cover on anything on a decentralised and scalable platform. Their MVP is expected to be available for beta testing by 1st November 2020.
As for SAFE holders, they will be able to migrate to $COVER through a smart contract after the completion of the beta tests for COVER.
$UNI-versal free lunch
Uniswap dropped a (welcome) bomb on 17th September 2020 when it launched its community token $UNI. Anyone who used Uniswap (including failed transactions) will be able to claim 200 UNI tokens for FREE. For those who provided liquidity to the platform, Uniswap will award you with even bigger bonuses. Check out our video below on how you can claim your free lunch:
Exchanges saw how hot these free lunches were going to be and immediately raced to list UNI. Currently, UNI is listed on FTX, Binance, KuCoin, OKEx, Poloniex etc. Prices for UNI were also on an upwards trajectory, with UNI going to USD$8.40 at its highest.
However UNI is still at its early stage and it needs to be seen the approximate range at which prices will be. Hence we hear a lot of people in the community saying that they will hold onto their UNI for now with a “wait and see” approach.
Ledger hardware wallet sale!
21st September 2020: YFValue’s Value Vaults will be available.
23rd September 2020: Flamingo.finance’s yield farm, Flamincome will launch.
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The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.