Huobi supports forked coin YFII, but overseas DeFi communities dare not come to China

As a layouter of China's cryptocurrency ecosystem, Huobi has always been at the forefront. For YFII (YFII for short), which was forked from the Chinese community, Huobi suddenly announced the listing on the 23rd, which directly raised the price of YFII, but it fluctuated violently again on the 25th.

Huobi is the only one of the three major exchanges to list YFII, which is believed to be related to the lobbying of community leaders. However, Huobi is still very cautious and only allows trading on the PC side. It will prompt that the project belongs to the digital asset in the observation zone, which is high-risk, and the single currency holding limit (maximum holding) is 50,000 USDT equivalent tokens.

If COMP is the instigator of the first wave of this round of DeFi boom, YFI is the leader of the second wave. YFI is the governance token of the DeFi platform yearn. It is an aggregation platform that supports multiple DeFi protocols. It can automatically transfer positions between various DeFi protocols that provide liquidity mining, helping users obtain higher returns.

In just one month, the price of a single YFI coin has exceeded that of Bitcoin. However, the total amount of YFI is only 30,000. Therefore, some community members proposed an additional issuance plan to increase the total amount of 30,000 to 60,000. At the same time, it will be halved every week in imitation of the Bitcoin halving mechanism. This proposal is called Proposal No. 8.

According to CarbonChain, two weeks after YFI went online, due to irreconcilable differences on Proposal No. 8, the core reason was that early miners were unwilling to dilute the currency value. Some YFI community members (mainly the Chinese community) announced that they would fork the project, giving birth to YFII.

Wan Hui Dovey, the opinion leader of YFII on the Chinese side and also the consultant of YFII, was once famous for attacking BCH, the fork of Bitcoin. She believes that "the industry division caused by the BCH fork and the external prejudice against Chinese evil miners and Chinese practitioners actually affect everyone."

Wan Hui’s opinion on YFII is: “The development of the two is completely independent because they are a set of code systems. Regardless of whether there is dialogue or cooperation at the development level, YFI can do it, and YFII does not need YFI’s approval to do it.” Some people pointed out that these remarks are somewhat similar to those of BCH supporters.

The birth of YFII also caused serious rejection of the Chinese crypto community by the Western community. Wu Blockchain learned that many popular DeFi projects have suspended or postponed their promotion plans to the Chinese community because they are worried about being copied or forked.

This is not the first time that controversy has arisen over DeFi project imitation. Dforce, known as the only Chinese DeFi project and also invested by Huobi, was attacked and plagiarized by COMP. After the bad news that all funds were stolen was reported, the overseas community was gloating.

This feeling of being ridiculed and excluded is certainly not pleasant. As many BCH supporters believe, forking itself should also be a kind of freedom, that is, people with different opinions in the community choose to take a new path. This is also the case for BTC/BCH/BSV, YFI and YFII. Of course, the moral condemnation of imitation/plagiarism cannot be avoided. What needs more attention is the operation after the fork. BSV was not spurned because of the fork, but because of the fraud of Craig Wright. What is worrying about YFII at present is that under the banner of nationalism, it smells the smell of some organized CX and capital disks.

At a time when nationalism is surging, should we reflect on why Chinese cryptocurrencies lack faith in technology and innovation and are filled with myths about power, money, and government, such as participating in the so-called BSN national plan, which has been widely publicized by various parties?

The rise of DeFi has fully demonstrated how much impact technological and model innovation can have in the world of cryptocurrency. Do these innovations have anything to do with China or Chinese developers?