YFLINK, The Plan, Progress, and the Updates | All in One Go
The idea of YFLINK was born out of the rigidity and security provided by the Chain Link contract protection. The Chain LINK drafts and executes smart contracts with a decentralized oracle network, augmenting the said contracts’ security.
Following this approach, the notion of point failure sustains the contract’s value and security. LINK is an integral part of the YFLINK, or YFL is regarded as one of the best governance tokens working on combining the YIF’s liquidity mechanism with the popular LINK token.
The LINK token has recently seen a 2X growth in its value and has risen to the 5th position in terms of the market cap. Where the organization reserves 30% of the LINK tokens, the rest are under the market cap.
Leveraging DeFi and LINK to build YFLINK
The founding team of YFLINK curated a plan to fork Andre Croje’s Yearn Finance. The initial plan was to bring the users to an understanding of accepting LINK and leaving yCRV aside. In Yearn Finance, the users supply liquidity in exchange for governance token that they can use to vote.
But, with YFLINK, it is not just about governance, tokens, and votes. The liquidity provided by the users will be deposited into various sorts of lending pools. The incoming liquidity from the users won’t be distributed to the yCurve pool, as we see with year.finance. Instead, by giving to different lending pools, the users are looking at generating better and high rewards gradually.
So, when the users are lending liquidity to the YFL pools, they will receive YFL tokens in exchange that can be used for taking part in competitions and votings.
YFLINK is established with two primary motives:
- To ensure that the maximum number of LINK operators have access to YFLINK.
- To ensure that the parent organization, i.e., YFLINK, does not run out of liquidity.
The YFLINK token that was launched on the 3rd of August 2020 is based on ERC20, and it came out with a limited supply of just 75,000 tokens.
More importantly, YFLINK does not support or endorse pre-mining. However, in their initial attempts to enhance the token’s outreach, the core team started to mine the token in lieu of 5 creators while reserving 3% of the total token supply.
Further, they also started to mine in the name of the peers who were a part of the YFLINK community. All these attempts were made to bypass the yield farmers and ensure a direct outreach to their peers.
YFLINK’s attempt to bypass the pre-mining stages and create a pool of YFLINK token users is done without raising capital from the investors.
YFLINK’s 75000 tokens are distributed in 6 pools (Pool 0 to 5). All the six pools will go live in August, and once all the YFLINK contracts are out with the community, the contract keys will be burned.
The Progress of YFLINK so far…
By avoiding the whale farmers and not taking investments from venture capitalists, the YFLINK creator trusted the community to take cognizance and mine the tokens by providing liquidity.
Following this approach, they got $5.6 million from the Pool 0, which had 15000 tokens to start with. Compared to the outcome of yield farming, these results are not that great. But looking at the motive of the creators, that is to get the token directly into the hand of the LINK marines (peers), they have been successful.
YFLINK is not just about raising capital for tokens and then giving the blockchain community another altcoin or another smart contractor validator to deal with. Instead, YFLINK is striving to change the dynamics around how we transact with blockchain in our day to day lives.
Instead of letting the whale farmers and investors take the lead, the community will be given the power to vote and make decisions with the power they earn from the tokens.
This maiden attempt to revolutionize can become a new method of working with the governance tokens and open up a multitude of different areas that can leverage this method.
Going Forward
As of 17th August, three pools have been made public open for mining by the community. Within this month, the other pools will also become available, Pool 3 on 19th August with 15,000 tokens, and Pool 4 on 26th August with 20,000 tokens.
The founders of YFLINK did not include any investor for two reasons:
- To give the token governance power in the hands of the community.
- To restrict the investors from trying to manipulate the price and if things don’t go right, throw the product under the bus.
It is the firm belief of the founding members that price drops do not kill the project, but the price drop hurts the investors. Due to the risk they take, the investors would want to steer the project’s progress in their favor.
With YFL, there are only 75,000 tokens, after which the keys will burn. So, if all the tokens are mined by the end of the mining program, the total market capitalization will be whatever the fair price is decided by the token holders multiply 75,000.
