Y2K Finance: Building a Financial Suite for DeFi

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@y2kfinance has asserted its position as DeFi's go-to stablecoin depeg market. But that's just the start; they're building something even bigger than that. A thread on Y2K's limitless possibilities and why it matters to you (1/16) 🧵

This thread will be split into 4 parts: 1️⃣ What is @y2kfinance? [3-5] 2️⃣ Traction [6-7] 3️⃣ Why it matters to you [8-10] 4️⃣ Personal thoughts [11-12]

1️⃣ What is @y2kfinance? Y2K is building a financial suite surrounding catastrophe bonds (CAT) for DeFi users. "CAT allow investors to bet on the likelihood of a natural disaster and companies to protect themselves from the financial losses of a disaster."

Simply said, Y2K is a prediction market for crypto's black swan events. Users can 'bet' whether an event (e.g., USDT depeg) will happen or not given a date and receive payouts or not based on the agreed conditions.

Although they have an initial emphasis on depeg events, the options are limitless. Prices (and payouts) are fully market-driven, based on the deposits on either side of the bet. If you're looking for a deeper dive, here's a really great thread by @0xShinChannn! twitter.com/0xShinChannn/status/1632368918328414213

2️⃣ Traction To date, they have done $134mn in volume across 31 markets. They support major stables. Additionally, there is a market for @GainsNetwork_io's trader PnL and $CRV. With the recent depegging of $MIM and $MAI, Y2K highlights the market's need for such a product.

To date, USDC is the most hedged and USDT is the most risky asset. Due to the generally low likelihood of a depeg occurring, deposits are skewed towards riskier assets. A simple reference by @pt1mfv_: Hedge = yay depeg Risk = nay depeg twitter.com/pt1mfv_/status/1643365947884064769

3️⃣ Why it matters to you As Y2K solidifies itself as the go-to CAT market, volume turnover means more fees for $Y2K holders. And you know what that means, 💸📈! Here's an article by @caZUBelli showing how you can make the most money off Y2K. 🤯 mirror.xyz/0x565D380416a2889b817C6Eb493f6DeeF029212Aa/I7I6XvJSRGO7uTjeqiFX7Xwa66Q7YoIunIRkhBpub2o

To users, the amount of risk you're exposed to when interacting with a dApp is often overlooked. SC risks, asset risks, counterparty risks (for some) and just losing in this PvP. Stables ain't as stable as it's intended, so save the headache.

To protocols, Y2K has an Earthquake Builder program that allows you to natively offer peg protection to your users. A clever B2B2C product. y2k-finance.gitbook.io/y2k-finance/products/earthquake-builder-program They also integrated @Balancer 's ve8020, a model worth looking for your protocol's governance, read more here! twitter.com/archipelabro/status/1686678273122770944

4️⃣ Personal thoughts Their design allows the spinning up of any insurance market given proper oracles and conditions. I see even more markets coming. 👀 Though they have an excellent GTM: depegs. Also, props to them for great trendjacking: gDAI PnL and CRV. 👏

They got a big addressable market, and a team that clearly knows how to capture attention in DeFi. Not to mention being incubated by @neworderDAO. Say what you want but I'm 🐂!

Refs y2k-finance.gitbook.io/ @0xMughal on Y2K's latest twitter.com/0xMughal/status/1633844114600132610 twitter.com/0xMughal/status/1683847033634045957 @blocmatesdotcom on errthing Y2K blocmates.com/blogmates/y2k-finance-doomsday-is-near/ @pt1mfv_ on Y2K's earthquake twitter.com/pt1mfv_/status/1643365935104012291 @caZUBelli Y2K's mech deep dive twitter.com/caZUBelli/status/1630168684600631297

Thanks for your support frens ❤️ @eli5_defi @defi_mochi @DAdvisoor @DegenCamp @thedailydegenhq @rektdiomedes @crypto_linn @2lambro @0xMughal @0xSalazar @ViktorDefi @0xPragmatism @jediblocmates @Grantblocmates @0x42069x @arndxt_xo

Chads who might be interested: @neworderDAO @Y2K_Intern @0xBumzy @Crypwalk_240 @cheguevara_0x @badquant1 @ArbiAlpha @0xsurferboy @0xcarnation @DefiIgnas @JiraiyaReal @CurveCap @arndxt_xo @GrowWithPassive