Today in DeFi - Insurance Farming, DAI Pegging, SnowSwap

Insurance Farming

A new farm has come on the scene. yieldfarming.insure lets users farm $SAFE, a token stated to be a “governance token of no value” which surged to over $4k USD at its peak. Users could farm SAFE with yNFTs, WNXM(wrapped NXM), or a 98/2 DAI/SAFE pool.

What does SAFE do? It is not really clear. The official article did not promise anything, but rumors on twitter and telegram led to a speculative frenzy that pumped SAFE to over $4,000USD. But not long after it launched, drama followed.

The developer behind yieldfarming.insure wrote an article saying a community member manipulated the project, while that community member responded with his own article defending himself. Whatevever side you’re on (and it’s also ok to not be on side), the future of SAFE seems currently up in the air.

Should you buy or farm SAFE? Keeping in mind this is a token with no clear roadmap or publically stated purpose, a lot of drama, and pools with a significant risk of IL, all I can say is tread carefully and Do your own research.

DAI Pegging

With demand for DAI quite high (in part because of SAFE farming), the MakerDAO governance community has taken measures to re-peg DAI to $1. It approved a new proposal which lowers the collateral ratios for USDC-A and PAX-A, two stablecoins. In addition, it increases the debt-ceiling of these coins significantly - that’s how much can be minted.
These measures essentially make it easier to mint-DAI using stable coins - allowing for an arbitrage cycle. Users can collateralize USDC or PAX , minting DAI against those stablecoins with high capital efficiency, sell that DAI for USDC or PAX, and then repeat the process.

Since the vote passed on September 14, DAI minted from USDC has increased and the DAI price has come down closer to the $1 peg.

SnowSwap

SnowSwap @snow_swap

Christmas is coming early this year 🎅: Earn more value with your yTokens Swap between yTokens without .5% fee's medium.com/snowswap/snows… Stay tuned for our launch! #DeFi

medium.comSnowSwap: Bringing Liquidity to Stablecoin Yield FarmingThe launch of Curve.fi’s y pool was a watershed moment for DeFi. It introduced the LP token yCRV, which was the first asset of its kind to…

Snowswap is an upcoming decentralized exchange for yearn finance vaults. Users will be able to switch their stable, yield bearing assets between vaults easily and without paying the 0.5% withdrawal fee. Find out more in the medium post.