YFIN Price Speculation

[brianwalden]

So I've been diving into DeFi this past week, which has given me some thoughts after seeing how other governance tokens are used. It's common in Defi for whatever pool or investment you're in to offer very high rewards, but paid out in their own governance token. From what I've seen, the general rule is that unless these tokens have some use, people just sell them so they can either lock in the profits to a stablecoin or reinvest them in the pools where they earned them. This means that their price just slowly grinds down over time - it's almost like they've recreated fiat inflation in crypto.

These DeFi services have to give people a reason to hold their coin, or else they'll just dump them. PancakeSwap for example, is paying out nearly 100% APY to stake CAKE. Trustline has a unique system of soft-pegging its governance token, TCN, to its stablecoin, AUR. So what about YFIN? You can vote on governance proposals - I'm not sure how important that is to people. A YFIN vote is worth 10,000 YFLR votes - that may help to keep the value up if enough people value voting. You can put it in the governance pool, but does that accept YFLR as well? And then there's the very small supply of only 11,000 YFIN - that tiny number seems to have a hypnotic effect on people. I can see why, $100M is a typical market cap of a middle of the road coin - just divide that by 11,000 and dream. Is there anything else I'm missing?

So it mostly looks to me that the returns on the governance pool plus the positive speculative sentiment will have to be enough to keep people from dumping their rewards from the FlareFarm as soon as they get them. I don't do prices, I'm not good at that. I'm just saying, that that's the equation I'm looking at. If the governance pool entices people to hold, it seems like a great long term investment. If not, the small supply may not matter.

Edited July 28, 2021 by brianwalden
Fixed YFIN to YFLR ratio.

[WrathofKahneman]

Fwiw, on the 2nd(?) beta, a great number of people were trying to pile into YFIN for the rewards.  I don't know if that holds true when the platform goes live - real money changes things .

[brianwalden]

2 hours ago, WrathofKahneman said:

Fwiw, on the 2nd(?) beta, a great number of people were trying to pile into YFIN for the rewards.  I don't know if that holds true when the platform goes live - real money changes things .

Yeah, so was I. YFIN is going to pump at the start. All of us true believers pile in with our eyes like saucers imagining our future riches. I still think you want to get as much as you can early on.

The question is, what does it do when the pump stops? As the philosopher Mike Tyson says, everyone has a plan until they get punched in the face.

[Flintstone]

One YFIN vote = 10,000 YFLR votes.

[Flintstone]

I think as long as that APY Cloud is pumping out rewards, there will be demand for YFIN and YFLR.
 

I think there will be more demand for YFIN initially due to the Farming rewards, then it’s down to weight within governance. Have to wait and see on that one.

[brianwalden]

57 minutes ago, Flintstone said:

One YFIN vote = 10,000 YFLR votes.

Oops. I'll correct it.