YFLINK came into the public domain and now connects the LINK token with the popular YFI liquidity mining mechanics. It works under the same guiding mechanisms and principles. It is important to note that it does not offer liquidity to the yCurve pool. Instead, it deals with LINK tokens farming. It carries this out by depositing liquidity into different lending pools and generating huge rewards.
YFLINK’s idea came into fruition because of the lack of flexibility and minimal security that the Chain Link contract protection gave. The chainlink writes, records, and enforces smart contracts with a decentralized oracle network. The LINK token has experienced a double growth in its value and is among the top five in terms of market cap.
The team that set up YFLINK hatched a plan to fork Andre Cronje’s Yearn Finance. The original plan was to usher in users to accept LINK and leave Ycurv. Differently from YFLINK comes Yearn Finance. In Yearn Finance, the users supply liquidity swapped for tokens of governance that can allow them to be eligible voters.
In YFLINK, the liquidity provided by the users is deposited into various kinds of lending pools. The liquidity that trickles in from the users isn’t spread to the yCurve. When users lend to liquidity to the YFLINK pools, they get tokens to compete and vote.
Aims of YFLINK
- To make sure that the maximum number of LINK operators can access YFLINK
- To make sure that the parent entity doesn’t run out of liquidity
The YFLINK token’s launch took place on the 3rd of August, 2020. It is based on ERC20, and it started with a limited supply of 75,000 tokens. Of importance is to know that YFLINK doesn’t support or endorse pre-mining.
The attempt to get around the pre-mining stages is carried out without raising capital from investors. By steering clear of more established and experienced farmers and avoiding venture capitalists’ investments, the YFLINK developer trusted the community. The community was given the power to take cognizance and mine the tokens by offering quality. Due to this approach, they received over $5m from the zero pool, which had 15,000 tokens to begin with.
YFLINK doesn’t concentrate on raising capital for tokens but making efforts to change the dynamics of how we transact with blockchain. Rather than giving power to whale farmers and investors, the lead is given to the community. The community has the power to vote and make decisions through the power they get from tokens.
August witnessed three pools going public and open for mining by the community. This same month also saw other pools being made available. Investors were not included for two reasons:
- To provide the community with total power over the token governance
- To bar investors from attempting to manipulate the price and if things go wrong, engineer the product’s failure.
Price drops don’t kill a project but instead hurt the investors. Since they stand a risk, investors are more likely to steer the project in their desired direction.
This started as an experiment among a group of friends who promptly exploded into a great idea that was so exciting that it had to be born. A team was brought together, and a plan was born. Several proposals were brought to the table, and the future looks bright.