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What is the DeFi Shrimp Finance protocol?
What is the DeFi Shrimp Finance protocol?
Defi

What is the DeFi Shrimp Finance protocol?

By Marco Cavicchioli - 24 Aug 2020

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Shrimp Finance is a new decentralized finance (DeFi) protocol launched this month. 

How and why Shrimp Finance was launched

The project was born as a fork of Yam, after it lost control of governance, without those features present in the previous protocol which caused the problems that led to the de facto end of Yam. 

The YAM token debuted on the crypto markets on August 11th, 2020, with a value of $66, and went up to $157 the next day, while now it is only worth $0.04. 

In other words, YAM has lost almost all of its value, due to the loss of governance of the smart contract with which it was launched.

On August 20th, the YAMv2 token was launched, with an initial value of about $10, now worth about $19, but previously, on August 17th, the SHRIMP token was also launched with an initial value of about $1, now worth over $10. 

SHRIMP is the ERC-20 token of Shrimp Finance, a community that aims to bring together investors by sharing information about recently released tokens and discussing DeFi. 

Fight against whales

According to the Shrimp Finance website, the group is composed of people who want to fight whales operating in this field, and anyone who owns 5% of the tokens can create an advanced pool. 

The GitHub protocol repository reads: 

“The whale fights the shrimp, and it has never changed since ancient times. Who said shrimp can’t fight big whales? As long as we are united!” 

Much of Shrimp’s source code was produced by modifying existing protocols such as Yam, but also Compound, with minimal changes to the distribution and staking smart contracts in use for example in Synthetix and yearn.finance. 

Thus Shrimp decided to use robust codes, already extensively tested, in order to minimise problems as much as possible, but at the same time sacrificing innovation. 

In fact, the SHRIMP token is distributed in the same way as the YFI token of yearn.finance: there is no premium, there is no share assigned to the founder, and there is no venture capital interest. 

The initial allocation is evenly distributed across 6 staking pools: WETH, DICE, CREAM, COMP, YFI, and the ETH/SHRIMP pair of Uniswap v2 token pools.

The governance of the protocol is already in the hands of the token owners, and after the distribution, the ownership of all the smart contracts of the Shrimp protocol will be transferred to the governance contract blocked in time, or removed completely, in order to be a truly decentralized protocol from the outset. 

In addition, anyone holding at least 5% of the SHRIMP tokens will be able to propose a governance action. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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