Today in DeFi - The Aavening, YFlippening, YAM Migration
The Aavening
For the first time in known DeFi history, lending protocol Aave surpassed Maker to become the #1 DeFi Protocol, with 1.21B TVL.
DeFi ranking site DeFiPulse was seemingly prepared for this event - its Maker Dominance metric switched to Aave Dominance.
Alas the Aavening was short lived, and Maker soon regained the lead with a $230M advantage at the time of writing.
While the Aavening didnβt last, Aave has strong tailwinds carrying it forward during this DeFi bull market and farming craze. By creating lending markets for DeFi tokens that MakerDAO and Compound donβt support, Aave has become an extremely good tractor for yield farming. I explain this in this tweet thread.
The YFlippening
YFI has become the first significant cryptocurrency to surpass Bitcoin in Price. For many YFI fans, this comes as no surprise, as the coinβs P/E ratio is quite low, and the βstock to flowβ is quite high(more scarce).
However for the rest of Crypto Twitter, this has probably come as a shock. Bitcoin occupies a premium position in most cryptocurrency fanβs minds, so this may bring more attention to YFI and the Yearn ecosystem.
YAM Migration
YAM Migration has started. If you are a YAM holder you can migrate by following the instructions in the article.
Food Coinocopia
YAM is not the only food coin making moves, but food coins arenβt really the reason I started this newsletter. The only reason I talk about YAMs is that, while flawed, it seems it was started with good intentions, and with some interesting design elements.
However, newer βmoney gamesβ popping up are less innovative and seem purely focused on profit and yield. Everyone likes money, but itβs not something I find interesting to write about.
If you do farm these new food coins, be aware of two risks:
Smart contract risk. Make sure the contracts you use have minimal or none.
Impermanent loss. YFFIβs breakdown shows that IL can hit LPs hard. Be careful out there.