Boxmining

Tag: Liquidity Mining

  • YFI Yield Farming with yEarn Pool

    YFI Yield Farming with yEarn Pool

    Yield Farming is a popular method for cryptocurrency owners to gain passive income. It involves taking advantage of various incentives rewards for locking-up (aka staking) different cryptocurrencies. This article focuses on yield farming for the $YFI token which has become the highest performing yield farming pool.

    Check out our video on how to potentially earn 600% returns through YFI Yield Farming!

    The yEarn project has launched its own governance token – $YFI – this week, sending the Decentralized Finance (DeFi) Yield Farming scene into a frenzy. As of this article, staking stable coins (USDT, USDC, DAI, or TUSD) into the Y pool will yield an astronomical 896% Annual Percentage Yield (APY). This is due to the incentive token $YFI being distributed to staked token holders, making this the single best yield farming pool right now. This has sparked a huge amount of interest in both searches for the $YFI governance token (trending right now on coingecko). Since the token launch, more than $60 Million of new capital has been deposited into the Y pool. Calculate yield using the community made yieldfarming tool.

    WARNING: Yield farming involves a high amount of risk due to the experimental nature of the Ethereum network with potentially undiscovered critical vulnerabilities. Never stake/farm more than you can afford to lose. This is not Financial Advice.

    What is the yEarn (iEarn) Pool

    The iEarn “Y” pool is a yield aggregator – it automatically invests its capital into different DeFi projects – selecting those with the highest yield and return on investment. As a DeFi protocol, a smart contract keeps the invested funds – which makes the project non-custodial. The pool itself is comprised of 4 different stable coins – USDT, USDC, DAI and TUSD – with a total of over $103 Million USD in currency reserves (Assets Under Management – AUM). These reserves are then lent out to different protocols that offer the best rates of return, including Compound, Aave, and dYdX. yPools are considered riskier than other DeFi products such as Compound because lend capital out to a series of protocols – which themselves could be vulnerable to critical vulnerabilities.

    How to Earn the YFI Token

    There are two pools that reward the YFI token for staking. The first and easiest pool to access is the Y Pool on Curve.Fi. This pool is a collection of stable coins that are automatically invested in different lending protocols. This type of pool is usually considered a higher risk due to possible vulnerabilities not just with its own smart contract, but with other smart contracts too.

    Deposit and stake option on Curve.Fi

    How to to earn YFI tokens

    Unfortunately “Yield Farming” for the YFI token has ended. When YFI first launched, all 30,000 tokens were distributed to stakers on the https://ygov.finance/staking platform. Although initially there were plans to distribute more tokens, attempts to come out with a plan to do so have all been voted down in the Y governance. This means it’s unlikely that new $YFI tokens will be distributed in the future. Other tokens such as YFII and YFV still have token distribution for yield farmers.

    What is YFI token

    Image
    Liquidity provider profit on Y Pool

    YFI is the governance token for yEarn (previously known as iEarn). Tokenholders are entitled to vote on upcoming governance decisions for the network – such as potentially stopping all-new distribution of the token. Creator of YFI, Andre Cronje (@AndreCronjeTech) has stated that the token has no intrinsic value.

    “We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value”

    Andre Cronje

    This being said, the current wave hype wave and token dynamics have driven up the value of the token. The token follows the “Governance” model where it’s value comes from voting on where the protocol will go next. On top of this, the incentivized Balancer pool (YFI 2%, DAI 98%) requires the staking of $YFI, which locks up further supply. Simply put, DeFi farmers are locking up YFI and DAI in order to receive BPT tokens which could be staked on ygov.finance to gain an additional $YFI. This type of cyclic farming create pseudo ponzinomics and could lead to potentially disastrous results.

    Balancer Warning & new coin minting risk

    One of risks that was mitigated by the team was with token issuance. Currently there is a max cap of only 30,000 YFI tokens. Earlier this week it was discovered that there was a master key which permitted YFI developer Andre Cronje to mint new coins and potentially flood the market with new coins. If he did this, it would of been possible for him to take the entirety of Pool#2 and Pool#3 on Balancer, with a total of more than $150 Million USD. Luckily this did not happen, as he quickly created a multisignature address which requires 6/9 key holders to agree to minting new tokens. The purpose of this is to remove single party risk as 6 of the 9 keyholders are required to agree to create new coins. On top of this, even if they do agree, the community will have 3 days notice before anything happens.

    Overall the long term objective of YFI is to leave control of the total supply of YFI and distribution up to the community to decide. The voting aspect of YFI will allow governance token stakers to decide who to do with the platform.

    YFI distribution stop

    Distribution of $YFI tokens will temporarily stop as new contracts are being prepared. Times for the pools stopping are as follows:

    Resources:

    yEarn documentation – http://docs.yearn.finance
    yGovernance and staking – https://ygov.finance
    Pool Information / Calculator: https://yieldfarming.info/
    Curve Guide on Pools – https://guides.curve.fi/how-to-choose-the-right-curve-pool-for-you/
    Coindesk Report: https://www.coindesk.com/troll-token-why-defi-yield-farmers-are-now-all-about-yfi

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • YFII Yield Farming – the controversial $YFI fork

    YFII Yield Farming – the controversial $YFI fork

    YFII (now formally known as DFI.Money) is a fork of the yEarn project (YFI) which offers a different token distribution model where token emissions are halved every week (YIP-8). This economic design encourages active participation in the mining of $YFII whilst allowing late-comers to still earn rewards. YFII functions as a governance token for the community – as tokens are required to vote on new decisions and implementations. As of this article, over $150 Million USD has been locked under the YFII pool 1– signifying the development of a strong community.

    YFII is designed to have 3 different pools with each distributing 10,000 tokens on the first week of release (July 27th), with the amount halving every subsequent week.

    The developers originally intended to implement this change via a governance vote “YIP8” – however, this was not passed by the community. This has led the creation of the YFII fork which directly implements a weekly halving model for YIP emissions. This has led to growing support for the project, especially in the Chinese community. $YFII shares a 98% code similarity to YFI, with the key difference being the “halvening” added clause – for more information check this comparison.

    YFII governance interface is also a fork of Ygov.finance

    YFII Launch controversies

    The launch of YFII was controversial and initially met with scam accusations – as the western community feared YFII was an exit scam. This was mostly due to the presence of potential back-doors such a “minter” and “governance” addresses that could create any number of new tokens (infinite token risk). These issues were later resolved by the burning of the “governance address” and clarification of the “minter” addresses.

    Metamask Phishing Detection Warning

    Is it Safe to Yield Farm YFII

    YFII is offering very high returns on investment, with pool 2 offering more than 2000% as of this article. The important question now is if it is safe to yield farm YFII. Metamask has issued Phishing warnings for the YFII site, likely a result of initial ‘report’ submissions warnings against the project.

    The key point of contention was the presence of an ‘owner key’ which could have been used to create an infinite supply of YFII. This issue has been corrected by the community after the owner key was burned – meaning that no new tokens can be created without the community agreeing to it via governance votes. There have also been a few alarms raised by the Balancer project, where the YFII-DAI pool was deleted temporarily.

    The Chinese Wechat community has been fast to call out against un-founded pre-justices against the project. Many have called Balancer centralized and potentially untrustworthy after these accusations/frontend censorship.

    https://twitter.com/FinanceYfii/status/1288405347976192000?s=20

    There is definitely a lot of risks using YFII – as with all decentralized finance projects and smart contracts.

    Two Pools

    Currently there are two pools to farm $YFI token – each has a distribution of 10,000 per week – decreasing by half every week (see chart below).

    To find out more about the estimated Annual Percentage Yield (APY) generated by YFII farming, check out the farming tool by Weeb https://yieldfarming.info/yfii/ycrv/

    How do you yield farm YFII

    *NOTE: Yield farming is extremely dangerous and can include risks such as infinite mint / smart contract vulnerabilities / token price volatility. This activity is not SAFE and should be viewed as EXTREMELY experimental. You have been warned*

    There are three different methods to mine YFII – all of them give different yields of YFII and have different associated risks. It’s not necessary to learn all of the methods – rather it’s important to understand they have different risk profiles.

    1. POOL 1: This uses the yCurve tokens generated on https://www.curve.fi/iearn.
      1. Log onto https://www.curve.fi/iearn
      2. On the Deposit page, deposit either USDT, USDC, TUSD or DAI
      3. This will generate yCurve tokens
      4. Stake yCurve Tokens on https://yfii.finance/#/ in the â€œyearn” pool
      5. RISKS: Y Curve Pool uses stable coins and automatically invests them into different protocols. This is considered high risk as any vulnerabilities in any of the protocols can lead to theft of funds.
    2. Pool 2: This uses Balancer’s 98% DAI: 2% YFFI liquidity pool
      1. Stake either YFII or DAI in the Balancer Liquidity Pool https://pools.balancer.exchange/#/pool/0x16cAC1403377978644e78769Daa49d8f6B6CF565
      2. This will generate BPT tokens
      3. Stake BPT tokens on https://yfii.finance/#/ in â€œBalancer (YFII-DAI)” Pool
      4. RISKS: Funds will be used to automate market making – meaning if the is a sudden large sell of YFII, then DAI tokens will be used to buy the YFII. This means price drops/volatility of YFII is a can lead to a reduction of pooled assets.
    3. Pool 3: Staking YFII in the “governance” Pool

    After successful staking, you should be able to see “rewards available” increase over time with more YFFI tokens. Tokens can be claimed at any time using “claim rewards”. On top of this, staking staked tokens can also be unstaked at any time with no lockup.

    YFII Governance

    During the bootstrap phase of YFII, the developers have chosen to use a multi-signature governance model where power is shared between 11 signatories. For a resolution to be passed and enforced, 7 out of the 11 signatories need to approve the action using a gnosis-vault. This is a temporary measure that improves the speed of contract deployment whilst power is transitioned to the YFII governance DAO (YFII voters get to vote on what to implement). More information can be found about the 11 signers & twitter verification here: https://keys.yfii.finance.

    YFII distribution

    YFII distribution chart

    YFII Wechat Group (Chinese)

    YFII community has a large Wechat group. To find the group, search myGrassU and type 3 to receive an invite into the group. In an open letter from the YFII community, the creator of YFI was officially acknowledged with a badass photo.

    YFII lists on Binance

    Binance listed DFI.Money (YFII) on 1st September 2020 with the following trading pairs: YFII/BNB, YFII/BTC, YFII/BUSD and YFII/USDT. No listing fees were paid by YFII for this listing- clearly Binance listed YFII in response to the overwhelming popularity with DeFi farmers and enthusiasts. Popularity and community is a huge factor taken into Binance when deciding what to list, as revealed by Co-Founder and CEO Chengpeng Zhao (CZ) during our interview.

    YFII’s listing on Binance gave them a huge boost, pretty much doubling the token’s value to over USD$8,000 in just one day.

    FAQ

    Is YFII Safe?

    YFII has similar contracts to Synthetix and YFI – so it’s not a total scam. However, it has yet to be proven if YFII is safe due to potential mart contract vulnerabilities. YFII has not yet been audited

    How do I add to the Balancer Pool 2

    Unfortunate Balancer has removed the add liquidity feature on the Pool (due to fears of potential infinite minting risk). To add to Pool 2 you need to use the balancer fork provided by YFII

    Where do I find the latest stats on YFII farming

    You can use an unofficial too provided by WeeMcGee – https://yieldfarming.info/yfii/ycrv/

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Resources:

    1. INFO : https://medium.com/@WhiteNoise1984/yfii-innovative-decentralized-defi-mining-pool-d745c032dfc0
    2. POOL : https://pools.balancer.exchange/#/pool/0x16cAC1403377978644e78769Daa49d8f6B6CF565
    3. FORK : https://bal.yfii.finance/#/pool/0x16cAC1403377978644e78769Daa49d8f6B6CF565 (Unofficial fork of Balancer pool. Use at your own risk.)
    4. STAKE : https://yfii.finance/
      CONTRACT : 0xAFfcD3D45cEF58B1DfA773463824c6F6bB0Dc13a
    5. how to see rewards btw https://yieldfarming.info/yfii/yfii_dai/

    YFII Announcement: https://medium.com/@WhiteNoise1984/yfii-innovative-decentralized-defi-mining-pool-d745c032dfc0
    YFII Token Address: 0xa1d0E215a23d7030842FC67cE582a6aFa3CCaB83

    Unofficial Yield Farming Info:

    Pool1: https://yieldfarming.info/yfii/ycrv/
    Pool2: https://yieldfarming.info/yfii/yfii_dai/

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. (Acetaminophen) As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • YFFI Yield Farming – did we finally find the best $YFI fork?

    YFFI Yield Farming – did we finally find the best $YFI fork?

    YFFI is a YEarn inspired governance token that is rewarded to cryptocurrency yield farmers (also known as liquidity miners). Due to the rising popularity of yield farming and the $YFI token, projects have taken the opportunity to create alternatives that can appeal to different communities. YFFI is one of such forks and it labels itself as “You Finally Found It – the Freshest Crops in Town”. This variant includes code similar to YFII, which halves new token distribution every week.

    YFFI claims that the ability to create new tokens has been destroyed by setting the “reward” address to 0000000. We haven’t fully looked at the code and there could be additional undiscovered vulnerabilities.

    Low Supply Warning

    The reason why YFI coins are highly volatile is due to the extremely slow initial supplies of the coins. As there is no pre-mine, team tokens and minting, the initially supply will only be from yield farmers. This means that in the first few days, supply will be extremely low, but increasing dramatically at 100% per day. This leads to wild swings in price and high volatility.

    How do you yield farm YFFI

    *NOTE: Yield farming is extremely dangerous and can include risks such as infinite mint / smart contract vulnerabilities / token price volatility. This activity is not SAFE and should be viewed as EXTREMELY experimental. You have been warned*

    YFFI can be mine using two major methods, each with different risks and steps:

    1. POOL 1: This uses the yCurve tokens generated on https://www.curve.fi/iearn.
      1. Log onto https://www.curve.fi/iearn
      2. On the Deposit page, deposit either USDT, USDC, TUSD or DAI
      3. This will generate yCurve tokens
      4. Stake yCurve Tokens on https://www.yffi.finance/ in the “yearn” pool
      5. RISKS: Y Curve Pool uses stable coins and automatically invests them into different protocols. This is considered high risk as any vulnerabilities in any of the protocols can lead to theft of funds.
    2. Pool 2: This uses Balancer’s 98% DAI: 2% YFFI liquidity pool
      1. Stake either YFFI or DAI in the Balancer Liquidity Pool https://pools.balancer.exchange/#/pool/0xFe793bC3D1Ef8d38934896980254e81d0c5F6239
      2. This will generate BPT tokens
      3. Stake BPT tokens on https://www.yffi.finance/ in “Balancer (YFFI-DAI)” Pool

    After successful staking, you should be able to see “rewards available” increase over time with more YFFI tokens. Tokens can be claimed at any time using “claim rewards”. On top of this, staking staked tokens can also be unstaked at any time with no lockup

    Premine accusations & resolution

    Premine accusations – YFFI was accused of having early pre-mine due to the early stages where the pools only had 7 different participants with 10yCRV each. This means that early rewards were split between very few people, allowing them to accrue higher rewards. To address these issues, the admins have decided to burn 175 YFI that was mined during the early stages.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.