Our Defensibility


Much has been made of whether YFI’s fee model is defensible long-term. The answer is yes, due to our ability to funnel fees into security/audits/opex, which will allow for us to launch more secure strategies and vaults, which will drive more fees, and the cycle continues. Everyone in DeFi is afraid of the next dForce. Our fees might be the only defensible ones in DeFi because of our necessity to continuously deploy new contracts. Thus, it is imperative that we allocate all fees towards what will be our greatest defensibility: security/audits/opex.


Allocate all fees generated directly to the team, so they can spend on security/audits/opex, effective immediately.


Our ability to continuously add new vaults and strategies will be our edge. We need to funnel our resources to those that can continue to give us that edge.


This YIP allows us to use our first mover advantage to win. Let’s not blow it like how Bitcoin has to Ethereum. Let’s direct the protocol’s profits to those that can continue to drive revenue to the protocol. All of our cash flow should be invested directly into our business. We are a startup.




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Can other people access the poll? It’s not showing up for me. Weird. How do you add the poll?

I cant see it either

I agree…first priority is to build the most trustworthy and robust brand name in defi…so much that we feel safe enough to recommend it to even non crypto folks. The fisrt six months are crucial…seeing everything that is happening…im confident yfi will get there…

Also as we build a stronger ecosystem…the yfi value should appreciate to reflect that…which means our yfi rewards would be more valuable…other forks/clones cant compete with that advantage over the longterm even if they try to copy the exact startegies…

Just from seeing how the defi space is taking shape so far…think agregators will be at the top of the food chain…pretty much everything else underneath will get commoditized…yfi seems to be in a great place to dominate that niche…

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Exactly right. Aggregating these products in the most capital efficient manner is extremely difficult. They’ll continuously be new opportunities to aggregate.

We need to empower our team to take full advantage of every opportunity they see, at their discretion. We’re too small and unestablished to force them to have to wait for us on everything they want to do.

Hi @yfi_lit there is already a YIP on this in #proposals YIP36 - please redirect your feedback there, but I think you will find this is exactly what we are doing.


Funneling discussion to on-chain voting thread: YIP 36: System Rewards as Operational Capital.

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