Say Goodbye to YFX
Dear YFX Users and Investors,
Happy April Fool’s Day.
I am MT (Math Teacher), the co-founder of the YFX protocol, primarily involved in product design and development. After five years and four iterations, it’s time for me to say goodbye. Throughout these years, we have done our utmost to develop and promote YFX. Unfortunately, market recognition has remained extremely low, with very limited adoption. This decision was incredibly tough, but my departure may present new opportunities for YFX.
Our team has always excelled at product development but has significantly lacked in operations, user growth, and branding, resulting in minimal visibility. Nevertheless, from a technical perspective, we believe YFX remains an excellent decentralized perpetual protocol. Launched well before GMX and HyperLiquid, YFX has maintained a robust security record over the past five years. Compared to competitors, our platform has distinctive original features. Although YFX still has unrealized potential, my exhaustion has become an obstacle to its progress. Hence, we plan to transfer control through an open acquisition.
After extensive team discussions, we decided to conduct a fair Dutch auction from April 1, 2025, to April 30, 2025, exclusively on Arbitrum, with a price range descending from 50,000 ETH to 1,000 ETH. The auction concludes when someone commits ETH at an agreeable price.
https://app.yfx.com/#/en/auction?chain=arbitrumOne
Should the auction fail, and no team steps forward to continue YFX’s development, the YFX website will be discontinued. The smart contract will be fully open-sourced without any commercial licensing restrictions, free for anyone to use or iterate upon. If future developers profit from YFX’s designs and code, we kindly ask for voluntary donations towards buying back and burning YFX tokens as gratitude to original token holders.
Assets and Rights Granted to the Winning Bidder
- Full control of the YFX protocol and ecosystem
- Exclusive ownership of YFX.COM and YFX.IO
- IP rights to YFX GitHub codebase (V1-V4)
- Transfer of 14,000,000 YFX tokens from the founder
- Management of 9,000,000 YFX tokens held by YFX Foundation
- Control over multi-signature wallets and admin addresses
- Access to the core development team and technical infrastructure
How to Participate in the Auction?
1. Set Up Wallet
Install MetaMask or a compatible Web3 wallet and fund it with sufficient ETH on the Arbitrum network.
2. Place Your Bid
During the auction period, click “Bid” and submit your ETH at your desired price point.
3. Claim Ownership
If successful, send a signed message from your wallet to contact@yfx.com to initiate the transfer.
Auction Rules
1. The auction uses a Dutch auction model, with continuously decreasing prices.
2. All transactions are final and non-refundable upon confirmation.
3. Payments must be made with ETH via the Arbitrum network only.
4. While V4 has operated securely for nearly a year, absolute security cannot be guaranteed. Participation is at your own risk.
FAQ
1. Why is YFX seeking acquisition?
YFX’s team excels in product development but lacks market operational capabilities. A team with complementary skills could fully realize YFX’s potential.
2. Can YFX guarantee complete security?
No protocol can guarantee absolute security. However, since V4’s launch in May 2024, no security breaches have occurred.
3. What are the requirements for bidders?
There are no specific requirements; however, given the complexity and risks inherent in DeFi, we do not recommend teams lacking blockchain experience.
4. On which exchanges is YFX listed?
Mainly Gate.io and Uniswap.org.
5. What is the circulating supply of YFX tokens?
Total: 100M. Around 37M currently circulate after mining, airdrops, IDO releases, and burning operations.
6. Has the YFX team profited?
No. All raised funds and personal resources have been reinvested into YFX development and maintenance.
YFX’s Story
YFX began during DeFi Summer 2020, inspired by the success of platforms like UniSwap V2. We anticipated decentralized perpetual contracts would be the next frontier and launched our first version on Tron by January 2021, ahead of GMX.
Core Design in YFX V4
Initially, we migrated traditional CFD contracts onto the blockchain. Over three years of iteration, V4 evolved into a comprehensive decentralized perpetual contract platform emphasizing fairness and decentralization.
Pricing Mechanism
Due to blockchain limitations, real-time oracles were impractical. Since V1, backend price feeds have been used, transitioning to ChainLink’s Data Stream service, supplemented by PYTH oracles as a backup. This ensures stable and fair index pricing.
Trade Depth and Slippage
To address the limitations of blockchain performance, we designed an AMM inspired by UniSwap’s formula, approximating Binance’s depth chart through multiple linear functions (y = kx + b).
Biance
YFX
Leveraged LP
Introduced in V4, LPs can now leverage their liquidity up to 100X, significantly improving liquidity depth and reducing user slippage, albeit increasing liquidation risks.
Liquidation and Risk Management
Unlike HyperLiquid, YFX does not experience bankruptcies from leveraged positions due to its protocol design, ensuring settlements at bankruptcy prices.
Comparison with Competitors
YFX follows a PvPool (AMM) trading model, distinguishing it from GMX’s multi-asset pools and HyperLiquid’s private chain order books, emphasizing simplicity, decentralization, and EVM-focused security.
Thank you for your support.
MT 2025–04–01
