Sorry for the title but I just heard the news about $YYFI and got a bit skiddish wondering about the possibility of the same thing happening to incognito. I unfortunately don’t know anything about coding or auditing code so I just wonder if anyone knows enough about the project to know if there are any central points of failure with this project. I absolutely love this project and see a bright future but I would really like to know this isn’t a possibility. Thanks and sorry for making your heart skip a beat
YFII is a Chinese fork of the DeFi project YFI. Initially complaints about YFII focused on lack of transparency and centralization, leading to the accusations of exit-scam by non-Chinese observers. It’s way too early to scream exit scam confidently about YFII: they’ve burned the admin key for the project. Thus unlimited minting (among other things) and other changes to the protocol are officially dead. YFII is courting the Chinese DeFi market, because Chinese investors finding it difficult to gain (pro-Chinese) influence with non-Chinese DeFi projects. That mix of xenophobia mixed with Chinese nationalism thrown in, seems to be the wind in the sails of YFII right now.
Could someone fork Incognito and make an exit-scam/centralized version, or otherwise misappropriate the code in a separate fork? Sure – the code is open source.
However that would not have any major affect on Incognito anymore than whatever shenanigans YFII is engaged in will adversely impact YFI. These are separate projects, despite YFII starting with a forked YFI code base. If YFII did indeed exit-scam, that would in no way harm YFI users (unless those users were also YFII users).
Also wouldn’t it take time and difficulty to replicate the decentralised nodes that Incognito currently has? Not something one party can easily spin up and convince others that it’s truly “decentralised”.
I’m sorry I couldn’t quite comprehend exactly what went on with the yyfi exploit. I just know that all of these protocols are extremely new and it’s hard to know what goes into them and what not. Thank you for the in depth explanation of everything. This is why I love this community. Whenever I have a question or concern I feel comfortable just asking without fear of being torn apart and booted from the forum. And I quickly get answers . I really can’t wait for ledger support so I can put a good chunk of my portfolio into the pool and earn interest!