I've taken heavy losses (or lost heavy profits) in DeFi. Cream has been my biggest invested risk capital loss as far as DeFi and AAVE (LEND) has been my biggest loss on profits. Luckily (not really, lol), I've derisked a couple of weeks ago so all my DeFi positions are cut in size and Cream and AAVE are both deposited in over 100% APY (Cream no risk of IL since single asset, AAVE a small risk of IL 98%/2% ratio LEND/YFV). I will be converting both interest rewards to USD stablecoins on a periodic basis whereas in other times I would have re-deposited them for even more compounding returns. Risk-aversal is the mode during bear market.
The reason I mentioned the 2 above is that imho I consider those the blue chips of DeFi continuing to deliver on the DeFi products even as the market punishes (or market correction defending on PoV) their "prices". What DeFi products are these? Lending/borrowing, money-market stable coins swaps with yields, flash loans for traders, and DEX (coin swaps, limited but hopefully growing, nowhere near Uniswap levels). Those 2 are severely down in prices, but so are the many DeFi coins I'm watching so no one is spared as far as I can tell.
Sorry for the TL;DR above and I know you mentioned your interest is in YFI which is in a different class of DeFi (again imho). YFI is a governance token for income-producing assets and strategies. I believe YFI participates in yield-farming food coins and other emerging opportunities and the income they return to the vaults and if business is good, YFI price is good acting as a DAO. Well, DeFi (yield-farming ) business is bad, very bad during this bear market, hence the much lower price of each YFI. I bought a little over 1 YFI at around $39K, saw it crash to $22K (start of DeFi bear market and $SAFE debacle), saw it go back up to over $34K, then $EMN debacle, and the price is now $18K. I did an "epiphany" trade 4 days ago to $core (cvault.finance) from YFI.
Epiphany trade, wtf is that? YFI was a great concept from Andre Cronje, give a "worthless" token as rewards for providing liquidity staking your valuable coins, but he will not keep any of it. Rare and fair distribution. No one knew how to value them, as "farmers" got the rewards, they were eager to dump them for any value they can get. Well, scarcity and fair distribution (think Bitcoin) is a valued commodity in decentralized cryptos, I saw YFI at $3K, read up on it, and it was supposed to be trading at $30 a few days before, saw it shoot up all the way to $30K, finally bought in at $39K a day before Coinbase listing, it went to $43K the day of Coinbase listing and has been on a price death spiral since.
Epiphany trade was I finally realized 4 days ago that YFI is a mature and scarce token acting as a DAO and by maturity is supposed to be more stable in price, as it creeps up going up to $100K and maybe even higher, and yet at $24K I was down 39%, so I said to myself, this is just as risky as a 2-day old coin, yup, a coin that has only been out for 2 days is outperforming YFI, so F it, let me trade YFI to this new $core coin. Well not all of it, 0.7 YFI coz you know, risk-aversal, lol, the rest trade to stablecoins. So, I initially had 1 $core, and that .7 yfi gave me me an additional 7.3 $core which is valued at $46K currently (although price is severely correcting, it was valued at over $70K yesterday), has recovered my YFI losses (so far) and then some.
$core is an all out, no excuses, will-pump-the price to the moon and beyond version of YFI that has 1/3 of the supply (scarcity extreme). Devs are anon so risk of rugpull but now, the project is valued at a very high price so no reason to rugpull their own investments valued very highly now. YFI is scarce, 30K coins, no more ever, $core is is 10K coins, no more ever. YFI has no more yield-farming, $core invented yield farming for a coin that has no more emissions, how??? Lock the LP pair (core/eth) 10K coins during the genesis release to the market and all the fees go to the yield-farmers (minus a small portion for dev fees). They released $core router which makes it 1-click entering into these LP's (but remember they are locked forever). They will be working on vaults later on which will be again the goal is to pump the price of $core and increase the value of those LP's through higher APY's. Churn and active transactions are the name of the $core game. When you transfer from one wallet, you get 99% only to the receiving wallet as that 1 percent is transaction fee paid to the yield farmers. A CEX listed $core and the devs are watching, since CEX may hurt the Uniswap LP's as CEX don't do transactions on the blockchain, they do database entries of buys and sells and do wash trading volumes, so the Devs have indicated on Telegram that if the CEXes start hurting the Uniswap LP core/eth volume, they will send a message to the CEX (i.e. Binance) that they will block the transfers. There's more info on the website cvault.finance and Telegram $core groups. Locked LPs forever means you always have a liquidity for when you wish to exit $core into stablecoins or other Erc-20 coins or Eth. Finally, those Uni LP core/eth tokens have developed a market on Balancer exchange, so now, they are technically not locked since you can even cash them out for a price, when you no longer want to be a yield-farmer. I sold 1.3 $core yesterday to stablecoin to lessen the investment risk capital. My next planned $core sale will be when it hits $50K each
TL;DR, if YFI was designed from the ground up with the goals on price appreciation and preservation only, then you get $core.
$core epiphany trades below:
