I understand how iTokens work. A user deposits USDT in the vault, and they will start receiving iUSD for farming it.
People can either convert iUSD to USDT or stake it to farm YFII.
This is similar to the YFI model with yCRV.
Explain to me if the YFII vault is not working, how will it generate yYFII tokens, if at all?
This is quoted from the long message from @cyhhao which very nicely words what I meant.
Even if there are some temporary strategies, the APY is not high, at least it makes me feel that the machine gun pool is always in operation instead of shutting down.
To sum up my point of view: Please put the protection of core functions at the highest priority, keep small steps and iterate, and don’t hold back big moves.
I am not against iToken or the other changes, and their importance for the future of YFII. But completely killing the YFII vault until changes are implemented just does not create any need for users to keep it. I am really baffled that none of you think about this, be rational!!
Imagine you are the owner of 100k USDT. You are staking with YFII, you get 1 YFII per day, or 3k iToken, or whatever coin it is. You will want to use it to farm YFII to maximize profit, which boils down the same thing.
So now, let’s imagine that you don’t sell to support the coin. The problem is, from thousands of farmers, eventually somebody else will. There is no reason to buy YFII because the coin has no profit bearing value, sell pressure is coming from these farmers, YFII slowly plummets.
Our 100k farmer is stuck with the decision, to either hold his YFII, which is a plummeting coin, as there is absolutely no reason for anyone to buy it. Or cash out his winnings, which is obviously the most profitable solution. And guess what, this action further drives down the price of YFII.
You and all the developers need to take a deep breath and start to think of PRACTICAL solutions to solve this problem. The people SELLING YFII ARE THE FARMERS, THERE IS LITERALLY NO ONE ELSE THAT CAN.
What you need is an INCENTIVE, to create buy pressure. Like cyyhao said, while I do care about the APY of the YFII vault, 2% APY is a million times better than 0%. This is definitely open for being improved on, until you guys hopefully realize, is literally the only thing ever mentioned that will drive the value up.
STOP focusing about the needs for farmers, they are their own “machine gun pool”. Once the farmers suck out the YFII and dump it, they will withdraw their USDT and leave to buy Sushi. I do not want to depend on the farmers, I want to depend on people who have spent their own money to risk and buy YFII.