Yearn Finance ($YFI) on Polkadot

Parachains cost money, you must stake DOTs.

App-specific chains are a bad idea generally and the worst idea for yEarn specifically, because yEarn derives its value from all the underlying DeFi products it optimizes over. Without them co-existing with it on the same chain, it’s literally useless.

Imagine yEarn is running on a parachain today. Where is paraCompound, paraAave, paraMaker … etc? Without them, yEarn is just a sleeping WASM blob.

I would say we should be liquidity maximalists. The onus is on other chains to bootstrap liquidity and/or create liquid bridges to Ethereum before yEarn goes to the trouble of catering to them. This applies to DeFi products that move to an L2 rollup as well.

An L2 chain or Polkadot/NEAR/Cosmos etc must:

  1. creates robust and highly secured bridges bonded on Ethereum, so that when they misbehave we users can litigate them to the EVM, slash them, and withdraw.
  2. attracts sufficiently large number of DeFi Legos

before it makes sense for yEarn to go to the trouble of re-compiling the contracts to these destinations and deploying them.

This is irrelevant. There are pro’s and con’s to both. It is actually better for new chains like Polkadot to be heterogeneous, because they exist on a different point on the decentralization-vs-security-vs-throughput trilemma. ETH2.0 aims to support 16k+ validators, and that puts a cap to how much throughput each shard can possibly have, so that the network as a whole can keep up and punish any misbehavior before the next finalization point. This is by design, because the choice has been made to maximize decentralization and security.

Polkadot, on the other hand, has currently 100s of validator, and will probably scale up to a few thousands. That’s not necessarily a bad thing, it’s just they are not aiming for maximum decentralization at the maximum security possible. They sacrifice a little bit of both for high-throughput.

Notice, however, that “heterogeneity” can easily exist in the ETH2.0 world as well, in the form of heterogeneous rollup chains that commit to a shard.

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