You guys think crypto's dangerous? Well, got a horror story for you guys, and for once,
the title of my video is not clickbait. That's more shocking than the story really.
The other day, I was heading out to the gym--that's right. I go--and my buddy called me
and he said, “Hey, you gotta get in this new project. You know finance. It's gonna moon!”
Well, lately, before the last couple of days, everything was pumping, especially if it said finance on it,
so I figured, “What the heck! Go big or go home, right?” So I threw several ETH at it.
$39,574 dollars to be exact. Well, by the time I got back from the gym,
the price had already dropped 50%, but no worries. That's just volatility, right?
Oh, it just kept going.
This screenshot from my wallet shows how much I bought and what that amount of YUNO is worth now.
My almost 40k is worth a whopping $1200. It's like I went through a wormhole and experienced
an entire bear market in a period of 48 hours and it's still dropping, you know?
Can still happen to the best of us and I know a lot of you guys have felt that way over the last week.
A lot of people have been wrecked. FOMO is not your friend. Remember that.
Months of hard work can go down the drain with a couple of bad decisions.
This is why it's so important to DYOR. Okay, enough fear-mongering. Back to moon time.
Let's get it.
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Alright, guys. Today, we are going to be discussing a moonshot of the week with all the right
pumpamentals. Also, we’ll be discussing the rise of yield farming and Crypto Wendy O
will join us to do some technical analysis on one of these popular yield farming coins.
So, for our moonshot today, we will be discussing DeFiat with the ticker of DFT.
The price is hovering around $20 after a steady uptrend from about $10 since its listing on CoinGecko
2 days ago. The price has seen a significant dip since its high of $28 at the time of this recording,
but the uptrend is still not broken. And, yes, you can buy it on Uniswap.
The total supply is less than 500,000 with only half of that being available for circulation.
A good portion of the supply is reserved for marketing, development, and operations.
Hey, marketing team, give me a call. 15% of the supply is to be locked in liquidity on Uniswap.
5% of the supply is reserved for the team. Not only does this token have a low supply,
but it has a deflationary mechanism with a portion of every transaction being sent to a burn address.
The burn fee is set through the decentralized governance mechanism the DFT holders operate.
Furthermore, staking will be introduced in October and we all know how much this market loves staking.
It just adds to the speculation really. 10% of the supply is reserved for staking rewards
although the staking rewards pool will be replenished through transaction fees set through the ecosystem's
decentralized governance model. Now, what does DeFiat Token do?
Well, it fuels the DeFiat Ecosystem and is used for the management of the Ecosystem
through the decentralized governance mechanism. Holders can also stake their tokens to yield farm
and earn passive income from the staking rewards pool. Transacting DFT and voting in governance decisions
rewards users with a secondary ERC-20 token DFTP which provides discounted fees
and burn rates for users. So, what is the DeFiat Ecosystem
and what is the purpose of it? As the first four letters of its clever name suggest,
DeFiat seeks to operate within the DeFi space. DeFiat will set itself apart from other DeFi lending
protocols by allowing users to stake its governance token. While Compound’s governance token
is earned by using the platform, you cannot stake COMP itself to yield fund.
Moreover, there's no incentive to actually participate in the governance of the platform with these
previous DeFi platforms. With COMP for example, you earn COMP for partaking in lending and borrowing,
but you do not get rewarded for using COMP in its fundamental use case.
Governance of the platform. Use case. You gotta love it. But with DeFiat, users will be awarded
DeFiat loyalty points for participating in the platform's governance. You may even get a free night stay.
Just kidding. Again, this secondary token will allow users of the platform to receive discounts
on transaction and burn fees. In regard to the transaction fees and staking of DFT,
transaction fees collected go to the DeFiat treasury which replenishes the staking rewards pool.
So while 10% of the total supply is initially allocated to the staking rewards pool,
the pool is topped off and refueled by transaction fees set by the decentralized governance of the platform.
This creates a sustainable model that serves to keep staking rewards from drying up over time.
Note: There are two fees for every DFT transaction--- a transaction fee that goes to the reward pool
and a burn fee that sends the respective fee to a burn address. The token's white paper opens
with an abstract that, after acknowledging the revolutionary potential of DeFi,
addresses one potential pitfall of DeFi products.
Black swan events.
Crypto enthusiasts observed large disruptions in the DeFi space while in the rapid crash in March
when Bitcoin crashed more than 50% in one day, known as Black Thursday.
A lot of pain was witnessed in the space, to say the least.
Particularly, borrowers through DeFi lending protocols, such as MakerDAO,
saw their collateral liquidated at abominable prices. Where's that snowman when you need him?
Safeguarding against black swans is integral to the team's stated philosophy as is enabling
protection against rug bulls, a term used to describe rapid withdrawal of liquidity on DeFi platforms.
You know?
From decentralized governance that is incentivized with loyalty points that offer discounts on fees
to staking of its governance token, a deflationary burn mechanism set by the community
and general DeFi services being offered, DeFiat has a lot going on for it.
Moving on from DFP but related to its fundamentals, let's talk about yield farming.
We've got a big video about this soon, but it has been such a craze.
I mean, who doesn't love having their money work for them?
Everyone invested in crypto is aiming to make money, whether it's through trading or holding.
What excites so many about yield farming is the ability to stake assets and earn a passive return
on those assets that go beyond price changes. So if you're into Tether or have someone standby,
you won't make any money holding it. That is unless you are yield farming it.
At the time of this recording, Tether has a lending rate fluctuating around 8% APY on Compound.
This means that you can put your Tether to work for you, staking it in the lending contract on Compound,
and by earning Tether at a significant interest rate. This allows current Tether holders to compound
their holdings without making trades, and this is a big deal.
The same concept applies to any token. For example, BAT holders are also currently enjoying
an 8% APY rate for lending their BAT, allowing them to accumulate more BAT
if they are staking in the contract.
On top of this, you have additional layers to yield farming. Running with the example of Compound,
lenders not only earn on the interest denominated in whatever token that they are lending,
but they earn COMP for lending, as do borrowers. This has led to something known as COMP farming.
As hinted above, the lending rates across DeFi platforms, such as Compound,
are variable and fluctuate constantly. Some tokens, such as BAT, may be highly profitable
for yield farmers at the moment but were not very profitable a few weeks ago
and may not be a few weeks from now. Things change.
Moreover, lending rates of a token vary from platform to platform. The interest rate collected by a lender of
say Tether on Compound will differ from the rate of Aave, thus Yearn.finance was birthed.
Rather than lenders having to manually navigate from platform to platform seeking the most profitable
rates than dynamic market, Yearn.finance automatically moves a user-staked assets between lending liquidity
pools aiming to have its users obtain the most profitable yield without manually managing their funds.
Yield farmers can accumulate and increase their stacks without having to go through the stress of trading.
As discussed, previously in the DeFiat section, lending is not entirely free of risk,
but it is a different type of risk, and aside from black swan events,
such as listening to my friend, there is little short-term risk compared to
selling off assets in an attempt to buy cheaper and accumulate. Keep this in mind though:
Some lending platforms have not had their smart contracts audited yet and these should
be treated with larger caution. There are other types of yield farming besides lending
protocols such as staking liquidity although we don't need to delve into that quite yet.
The point is that allowing people to put their stagnant money to work for them in a decentralized
ecosystem managed by smart contracts is enticing to many in the cryptosphere and is largely
responsible for fueling the rise of DeFi. Now, as we always do on Friday, we're going
to bring in Crypto Wendy O to check out the technicals on a project, so let's have her
check out YFL to see what the value of the coin should be looking like according to the charts.
Hey, Wendy, it's great to see you. What are the charts telling you right now about YFL?
Thanks for having me again, BitBoy. Let's go ahead and talk about YFL, Bitsquad,
and see if we can make some money here. So I'm hearing a lot of hype about YFL on crypto twitter.
If you go ahead and you search in #yfl, you're going to see a lot of big accounts,
a lot of people talking about it. So, that has piqued my interest. A lot of the YFI projects
are making money and I believe that YFL is link-related, which is actually pretty bullish.
So, despite Bitcoin being red, the market is dumping, it's looking really scary,
have strong hands and let's talk about some potential entries for YFL and also long-term profitability.
So, taking a look at the four-hour chart, because there's not a whole lot of data,
we're seeing that we're being pushed by the EMA 21. We're being pushed down and we actually got
into my support box here at about I think a low of around $600. So, MACD is bearish,
bear across heading down. The MFI, the Money Flow Index, the Money Flow Indicator has also
got a nice upward tick so people are starting to buy. However, I don't think we're done collecting it.
Me, personally, if I was interested in getting into this project, I would like to get in between this area,
between about 771 and 527. As far as upside for this type of project,
we're going to go ahead and throw on our fibonacci. We're going to take it from the top at about 1800
and pull it to the bottom here, which was about at $43.
So, generally, when using fibonacci extension or retracement, you can see where price can potentially
go up or go down. So in this case, our high here was about $1800 and I do believe that once
this particular project bottoms out, I think that we can start making upward moves.
My first target would be a flip of support at about 1143, then from there, 1434,
and then the all-time high, 1813. So while Bitcoin is bearish right now, price will continue to correct
and this is a great buying opportunity for you, but once we break 1817, that all-time high,
I would actually like to place an order to sell it about 2045 and then here at about 2294.
I'm also hearing a lot of people talking about this potential project going to about $10,000
making some really really big gains like some of the other yield farming projects.
We don't know 100%, but if you're able to get a decent entry on this
and then hold it and flip it later, you will definitely make a lot of money.
Thanks, Wendy. As always, you guys make sure to go check out CryptoWendy O’s channel.
Make sure you guys hit her with that Subscribe button.
But now it's your turn. What do you guys think about DeFiat?
Will it be the next big thing in DeFi? What's your favorite DeFi platform to trade on?
Let me know down below in the comment section. Also, don't forget to visit 1BTC.BitBoy.Live
to enter our full Bitcoin giveaway. It might just change your life.
I hope you enjoyed this video. If you did, please make sure to smash the Like button
and hit Subscribe to become a member of the BitSquad. Thank you so much for watching. Have a blessed day.
BitBoy out.