$wYFI: but why? Find out in this thread full of assumptions!

What is Stable Credit? What does this mean for $YFI? Should I ape?

I think this is where I put NOT FINANCIAL ADVICE in all capitals. I'm new to this.

@AndreCronjeTech has been working overtime lately pumping out new contracts for something he calls "Stable Credit". So far there have been 4 iterations released to the mainnet. Predictably, the first one (yCREDIT) had hundreds of thousands blindly thrown at it from greedy apes.

As is the case with the first version of unaudited contracts, it had an exploit and the deposited funds were drained within a day of its release. Please refer to the following tweet for further explanation: https://twitter.com/MoonOverlord/status/1347539192126050308

The second through fourth iterations were less eventful. Most people finally realized that they should wait for the real version to be released. This didn't stop a handful of people from spending $50+ in transaction fees minting a token with no value.

The best place to learn about what Stable Credit is is from Andre's blog at https://andrecronje.medium.com/stability-peg-management-d7fdb7dff91a. I'm not smart enough to explain it, so if you want to learn more I suggest you read it. tl;dr: deposit stable coins (and others), receive Stable Credit.

The original Stable Credit contracts had a feature that takes a fee of 0.5% on every transaction and distributed it to any user who staked Stable Credit in the Stable Credit contract. This sounded great, but Andre wanted to build something better.

It all started with an alpha leak from @bantg ( https://twitter.com/bantg/status/1347053889036673030) where Andre said the word seigniorage and all the Uniswap apes erupted in cheers because they think that word means "print money out of thin air and put it in my wallet".

The following day we got more alpha from the man himself courtesy of @ivangbi_ ( https://twitter.com/ivangbi_/status/1347313342780743683). Andre explains that instead of earning rewards from staking Stable Credit they would have to burn their precious $YFI for $wYFI at a rate of 1:1,000!

The Uniswap apes erupted in even more cheers because they think the word "burn" means "print money out of thin air and put it in my wallet at a faster pace than seigniorage".

So far we've learned that Andre is making a SEIGNIORAGE stable coin and BURNING $YFI. Everyone is going crazy trying to find out where to blindly throw their money.

The answer, as always, is $YFI. Since 1,000 $wYFI is pegged to 1 $YFI the price of $wYFI will always depend on the price of $YFI. The utility for $wYFI is to stake it and earn 50% of the fees from Stable Credit transactions, which is something a lot of people will do.

The benefit for $YFI is that not only will people who want to mint $wYFI need to buy $YFI, but they will also need to burn it forever. Supply go down, price go up!

There's a lot more that I can go into here, but this is getting pretty long. Please be aware that this thread is all guessing on my part and I could be wrong about some, most, or all of it. I'll leave a few links for anyone who is interested to do some due diligence.

https://andrecronje.medium.com/stability-peg-management-d7fdb7dff91a

https://andrecronje.medium.com/stable-credit-understanding-automated-positive-sum-liquidations-1083c73e4e00 https://twitter.com/AndreCronjeTech/status/1347194324237176832

Should you buy? I have, but it was also closer to $25,500 when I did and it's now $35,500. I am still holding 100% of my position and hoping for huge gains out of this one. The #1 rule in DeFi is to never doubt Andre.