Thread by @yflpepe

Okay, time for another $YFL thread 🧵 🪡

Things are really heating up for #LINKSWAP since the last thread, and quite frankly I can hardly believe how bullish it all is.

I believe a sell-side liquidity crisis is coming.

Data below 👇👇👇

Here’s a breakdown of how many $YFL are locked/deposited in contracts:

V1/V2 governance vaults: 12,803 YFL

YFL/ETH pool (LINKSWAP): 2,387 YFL
YFL/LINK pool (LINKSWAP): 2,736 YFL
YFL/ETH pool (Uniswap): 1,502 YFL

Total # of YFL deposited in contracts: 19,428 (39% of supply)

Now, of course this is constantly changing as people trade between YFL and its pairs, but the trend is striking:

People are depositing thousands of YFL each day into various contracts, restricting the circulating supply.

Here’s something imperative to consider:

Unlike the governance tokens of most other DEXs, $YFL does *not* have an inflationary supply.

In fact, upcoming initiatives like Wafflehouse will actually give YFL a deflationary supply!

Furthermore, starting this week, $YFL will see a steady stream of buy-side pressure.

When stakers withdraw their rewards (in the form of yYFL) from the vault, the smart contract market buys YFL to convert their LINK/ETH tx fees into YFL.

LINKPAD (@linkpadio) will also market buy $YFL tokens on LINKSWAP each quarter using 70% of the fund’s net profits.

Okay, now here’s what causes a sell-side liquidity crisis:

• 39%+ of the $YFL supply is locked (and growing)

• Staking rev + LINKPAD rev creates constant buy-side demand

Limited available supply + constant buy-side pressure = sell-side liq crisis

Long thread, I know, so here’s the TL;DR:

• #LINKSWAP TVL is growing exponentially

• Launch of staking rewards + LINKPAD create constant buy-side demand for $YFL

• Super-limited YFL supply leads to sell-side liquidity crisis

I’m never one to offer price predictions, but just based on the info in my last tweet thread, it’s clear that $YFL is now *woefully* undervalued.

Read more below:

https://twitter.com/yflpepe/status/1337910282253811713

#LINKSWAP’s TVL *is* going to pass $50 million by the end of the year at this rate, which will make it the 6th largest DEX by TVL.

Since I wrote the aforementioned thread 2 days ago, its TVL has already increased by roughly 67%.

Conclusion:

$YFL is currently resting on a launchpad, fully fueled and ready to fly.

The match that will ignite it will be trading volume, which I expect to see massive growth in the weeks ahead (see previous thread for details).

It’s go time, frogs.

Sorry for tagging you all twice in a few days, but I think exposure for this analysis is important :)

CC: @Josh_Rager @fonship @gMAKcrypto @fomosaurus @Coin_Shark