Thread by @devops199fan

1/ @Rewkang recently proposed "Liquidity Black Hole Theory" 🌀💰

@iearnfinance $YFI by @AndreCronjeTech might be the most massive one yet 💪

curious why? 👇

cc @damirbandalo @DegenSpartan @Arthur_0x @mrjasonchoi @tonysheng @mhluongo @safetyth1rd @zhusu

https://twitter.com/Rewkang/status/1272631205263900672

2/ as @delitzer pointed out: there was no premine and all 30K $YFI will be farmed in 1w 📈

$YFI holders will then vote whether to stop issuance 🤯

if stopped there will only be 30K YFI in existence 🚀🌕

for reference there will be 21MM #BTC

https://twitter.com/delitzer/status/1284870764051591169

3/ to quote @damirbandalo: "Making first vote will we issue more and giving it to #DeFi 🌕 boys. Ofc it's a no."

this would mean the #BTC supply cap is 700x higher than that of $YFI 💸

and so far the vote isn't even close 🗳️

4/ however, i think this is a mistake ⚠️

scarcity is desirable, but completely stopping issuance will have adverse effects 😱

instead, we should greatly reduce issuance so folks are still incentivized to LP 🔥💯

https://twitter.com/Daryllautk/status/1285010668224000000

5/ combine that with a tight feedback loop and you've got the recipe for a moon mission 🚀🌕

the loop comes in the form of two incentivized @BalancerLabs 2% $YFI / 98% stablecoin pools which use either:

@MakerDAO $DAI

OR

@CurveFinance $DAI + $USDC + $USDT + $TUSD LP tokens

6/ that means a $100K pool would ideally be $2K $YFI and $98K stablecoins 🪙💰

these two pools combined will receive 66% of $YFI distributed this week (20K $YFI) 😱

this does two things:
1. it creates a huge offramp for exiting $YFI for stablecoins
2. it requires people to...

7/ have $YFI to farm🤔

most end up buying it: either outright or by depositing only the stablecoin component into the @BalancerLabs pool 🏦

this demand boosts the $YFI price 📈

you can see how the price spikes each time a new pool is announced and farmers rush in 🧑‍🌾💰

8/ by using a 98/2 pool instead of a 50/50 pool @AndreCronjeTech financially engineered this to pump 💪

assuming the same demand for $YFI, buys in the 98/2 pool will cause much more slippage and $YFI price appreciation 💰

btw 2% is the minimum percentage allowed 🤓

h/t @gpl_94

9/ over the next week as word of $YFI and @iearnfinance spreads outside CT, demand will likely increase 📈

to top it off, there's even more demand because you need to be in the $YFI / @CurveFinance @BalancerLabs governance pool to vote re: issuance 😂

medium.com/@andre_54855/p…

10/ in the last 24h two new things even launched 🤯

they dropped surprise $YFI staking to earn a % of protocol fees 🧑‍🌾💰

h/t @Daryllautk

https://twitter.com/Daryllautk/status/1285062582357725185

11/ and a sweet governance forum 🔥💯

i wonder what else @AndreCronjeTech and @iearnfinance have up their sleeves 😉

h/t @Cooopahtroopa

https://twitter.com/Cooopahtroopa/status/1285080765198487553