Much has been made of whether YFI’s fee model is defensible long-term. The answer is yes, due to our ability to funnel fees into security/audits/opex, which will allow for us to launch more secure strategies and vaults, which will drive more fees, and the cycle continues. Everyone in DeFi is afraid of the next dForce. Our fees might be the only defensible ones in DeFi because of our necessity to continuously deploy new contracts. Thus, it is imperative that we allocate all fees towards what will be our greatest defensibility: security/audits/opex.
Allocate all fees generated directly to the team, so they can spend on security/audits/opex, effective immediately.
Our ability to continuously add new vaults and strategies will be our edge. We need to funnel our resources to those that can continue to give us that edge.
This YIP allows us to use our first mover advantage to win. Let’s not blow it like how Bitcoin has to Ethereum. Let’s direct the protocol’s profits to those that can continue to drive revenue to the protocol. All of our cash flow should be invested directly into our business. We are a startup.