I have already spoke about this project, but I'm kinda bullish on it so I've decided to repeat the lesson.

If it wasn't obvious by now, defi is here to stay, however, in order to make it work on a large scale, some things had to be changed. Decentralized finance is promising but lacks trust as most devs are either unknown or the code is not audited.

This opens the door for too many rugs pulls, dumps, exit scams, or code exploitation.

The demand for decentralized finance is increasing, more and more retailers, Venture Capitalists, and investors are entering the game, providing liquidity, speculating, trading, borrowing, lending...

The greatest question of all is how to reduce the amplitude of the attacks, thus ensure the funds are safe.

With no middlemen involved, defi projects are able to create a decentralized environment, where people can financially interact in a permissionless manner.

But, as already mentioned, defi is a risky place.

Here's the project that is the closest to solving it.

YFDAI

YFDAI hopes to solve this by offering a full suite of decentralized applications once the minimum requirements are met. Before being listed they have to be audited, trustworthy, and safe to use. Unlike uniswap, it does require the project to be legit before allowing traders to speculate. I believe this is a must, otherwise crypto will always remain the niche industry.

Investors can get up to 72% APR (per year) by staking YFDAI tokens and getting rewarded from a limited pool of 5594 YFDAI tokens. What's important to note is that the protocol has no minting function, therefore, there's no inflation that could slowly eat up the value.

No minting function means one attack vector less when doing game theory - Which is quite important, especially if we consider how much projects got fucked but the explit of such function.

It is important to note that YFDAI has no minting function, meaning that there is no inflation and no new tokens can ever be created and dumped on the market. Once this pool of YFDAI tokens runs out, rewards will start being distributed in the form of tokens from Launchpad projects.

Going further, the mechanism(read DEX) that's ensuring the legitimacy of the project is Called Safeswap that is basically a version of uniswap with more features added.

SafeSwap, YFDAI’s version of Uniswap, will screen projects that get listed by requiring them to meet a list of criteria such as smart contract audits, liquidity locks, and token locks. Users of SafeSwap can have some level of assurance that they will not get scammed or rug pulled.

_{[source](https://www.thebirbnest.com/fundamental-analysis/yfdai-defi-next-level/)}

I don't know, I have seen a lot of similar projects but this one is supported by big names in the crypto space, plus they are transparent, devs behind revealed their identities so it's much harder to pull an exit scam.

YFDAI is currently occupying the 350th spot according to @coingecko with one token being worth around $2.5K.

This is not financial advice - DYOR

Posted Using LeoFinance ^Beta