1) Some thoughts on @FinanceYfii and @iearnfinance . There are very different mindsets between the east and the west, looking how this event unfolded from two-sided is quite interesting. First of all, salute to @AndreCronjeTech for creating the @iearnfinance protocol.
2) @iearnfinance by @AndreCronjeTech created a huge hype in the Chinese crypto space, part of the $YFI community in China is interested in the governance, but I believe many people who heard about $YFI are more interested in the high yield that YFI token brought to the space.
3) We expected there would be a fork of $YFI protocol in the market to generate additional hype in the market to let people chasing the yield. Due to language and technical barriers, many people in the Chinese community were unable to participate in the $YFI farming.
4) There are significant risks in farming $YFI as @AndreCronjeTech said "I test in prod", not to mention many other risks, people who experienced financial industry might know what I'm talking about here :
5) Someone forked @iearnfinance protocol and immediately launched its yield farming straight after the $YFI ended its *initial* distribution. @metamask_io, @BalancerLabs and the $YFI community immediate raised suspicious about the @FinanceYfii project.
6) Just bcs without knowing any details or backend story, the @FinanceYfii does look extremely suspicious, not to mention various other DeFi risks if a person decided to interact with the protocol. Communities in the west are more conscious about risks involved in yield farming.
7) Active members in the DeFi community were calling out substantial risks on unaudited contracts, centralization risk during the first few days of @iearnfinance post-launch and have successfully driven the protocol to be safer and more decentralized.
8) Communities in the east are not super fuss about risks compared to the west, some experienced ones are willing to “gamble” to chase the high yield, and some are putting a small amount of money just to try it out and experience the excitement on such high yield. @FinanceYfii
9) Thus, what we’ve seen in the post-launch of @FinanceYfii, a significant amount of capital flew into the $YFII protocol to farm, people also leveraging Wechat as a DAO to propose solutions on how to manage the owners key:
11) I do believe what @BalancerLabs, @metamask_io, @etherscan did to flag $YFII contract as potential phishing/scam/comprised are in fact in a good faith to protect the greater crypto community interest, as the industry had little knowledge on who is behind the @FinanceYfii
12) But the “war” began I believe due to miscommunication and misunderstanding of different mindsets and culture between the crypto community in the west and the east. @BalancerLabs decided to “remove” $YFII liquidity pool in the front end to protect the greater crypto community.
13) Not everything is decentralized by @sassal0x is a great read:
14) But in fact, you can still access the $YFII liquidity pool by using some technical ways, that’s why DeFi is decentralized, permissionless. However, the community in the east did not interpret this as a way to protect the community just because they have the “first hand” info
15)Plus with differences in mindset and culture. The communities have kinda formed a consensus that @FinanceYfii is not a scam, thus the @BalancerLabs decision and all the phishing/scam warnings on @metamask_io ,@etherscan kinda provoked the community.
16) And started a ”hostile” engagement with the @BalancerLabs and created a fork in a way to support @FinanceYfii farming. Again, that’s the beauty of decentralization :D
17) Some people may say it’s a copycat, a cheap knockoff, to some extend I do agree, however, the $YFII forked because they have a different opinion the improvement proposal thus they forked it and sort of created a community in China.
18) The conclusion here is that I believe there weren’t sufficient communication between the east and the west, especially @FinanceYfii , @iearnfinance , @BalancerLabs
plus with the language barriers and cultural differences resulting in a bit of clash between the communities.
plus with the language barriers and cultural differences resulting in a bit of clash between the communities.
19) And I do think saying supporting YFII is supporting Chinese DeFi is nonsense. Last, but not the least, stay safe out there, not everyone forking protocols with good intentions :D
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